WV Center on Budget and Policy > Blog > Economy > A final word on unemployment benefits (maybe)

A final word on unemployment benefits (maybe)

Jumping off from from my previous entry about unemployment benefits, I wanted to share this chart, which was presented to the House Budget Committee earlier this month by Mark Zandi, the chief economist of Moody’s Economics and former economic adviser to Senator John McCain during his presidential run. Mr. Zandi’s full testimony is available here, and is worth a look. It provides a great overview of the government’s efforts to combat the Great Recession, what the effects have been, and what we should look at going forward.

This chart is what caught my interest in Mr. Zandi’s testimony, particularly as the Senate is set to try and extend unemployment benefits again next week.
 
 
According to Moody’s Analytics, extending unemployment benefits is one of the most effective stimulus measures, 5 times as effective at stimulating the economy than making the Bush tax cuts permanent. Also very effective is financing work-sharing programs. Sounds familiar. 
 
And to add even more interest to the story, the Senate’s ability to pass an extension on unemployment may come down to the vote of Governor Manchin’s pick to temporarily replace Senator Byrd.  

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