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then the states that cut off the extra unemployment early would have seen greater job growth then the states that kept it up. they didn't. https://www.wsj.com

• imtringued 5y ago
  People love talking about how government spending causes an artificial boom. In my opinion it just increases flexibility in the debt market by giving unemployed people access to government debt via unemployment benefits. Of course, it's still a band aid and we should figure out other ways like sharing work by making the hours per week one can work flexible according to what happens in the economy. The fact that entire people end up unemployed and then need to be bailed out by the state is just grossly inefficient compared to e.g. firing 50% of their work hours. I say this because every human contributes a baseline of demand for things like housing and groceries. Firing workers also fires the consumer that demands housing and groceries which leads to a downward spiral that is much worse than just the inefficient production of goods and services that nobody wants.