Wednesday, June 02, 2010

Further evidence that increasing benefit payments increases unemployment

I talk a lot about how increasing benefit levels will draw more people onto welfare (see previous post). Yesterday I came across the following which essentially tells us that for every 1 percent increase in welfare there is a 1 percent increase in joblessness. That is, in English speaking countries. But the same relationship in the Nordic countries is a negative one. Hence the futility of trying to emulate policies from that part of the world.

1 comment:

Anonymous said...

have to say, Lindsay, this just proves what I've been saying.

The answer is not benefit reform.

It is simply cancellation of all benefits.