Unemployment in the Gamma Quadrant

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A “friend” emails to inform me that “you’ve got to weigh in on Arthur Laffer’s op-ed today in the WSJ.” Thanks, pal. That’s five minutes of my life that I’ll never get back.

So why am I caving in to him? Most of Laffer’s op-ed is just the usual conservative griping about unemployment insurance: it makes people lazy, it doesn’t stimulate demand since “for everyone who is given something there is someone who has that something taken away,” and stimulus doesn’t work anyway. Plus there’s some musing about $150,000 unemployment benefits and two people selling apples to each other. Hardly worth bothering with. But then there’s a chart. And that makes the whole thing a must-read. Here’s what Laffer says about it:

Common sense and personal experience indicate higher unemployment benefits will make unemployment less unattractive and thereby increase unemployment even in the Great Recession. As the chart nearby clearly shows, since the 1970s there’s been a close correlation between increased unemployment benefits and an increase in the unemployment rate. Those who argue that things are different today don’t have the data to back up their claims.

Yep: Laffer is seriously suggesting that unemployment benefits, which, according to his own chart, begin rising after unemployment rises, are what cause unemployment to rise. It’s groundbreaking stuff, but as an exercise for the reader, can you think of an alternate mechanism to explain why total unemployment benefits paid out might go up when the unemployment rate goes up? Anyone? Take your time. I know it’s a chin scratcher.

Even by Laffer/WSJ standards this whole thing is pretty surreal. Are business executives who read the Journal really so gullible that they buy this stuff?

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REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

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