The 'FEMA economy' created incentive-incompatible outcomes: extending unemployment compensation for longer periods paid people not to return to work, so officials were then puzzled that people weren't coming back—an instance of the classic conflict between good economics and good politics (concentrated benefits, dispersed costs).
causalpending
Speaker
Peter BoettkeEvidence Quote
“it's incentive incompatible if you get paid to not work then you're not going to work and the FEMA economy has generated a lot of these kind of difficulties”
Created: 6/17/2026, 10:29:22 AM
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