Question

During regular economic times in the United States, the maximum length of time a worker can collect unemployment insurance is 26 weeks. During recessions, however, Congress often increases the length of time in which workers can collect benefits. During the recent financial crisis, workers could collect benefits for up to 99 weeks in some states. This system will:

Answer 1

Answer:

the options are missing:

a) encourage people to search longer for a job.

b) provide workers with an adequate safety net.

c) prolong the amount of time a person stays out of work.

d) increase the number of workers looking for work.

e) allow more people to start businesses.

The answer is:

• b) provide workers with an adequate safety net.
• c) prolong the amount of time a person stays out of work.

This type of actions can be considered humane and necessary due to certain special circumstances, but it has two effects, one good and one bad:

The good effect is that it provides workers' families with an adequate safety net. I.e. it allows a lot families in need to cover some of their basic necessities which helps them avoid a lot of suffering.

The bad effect is that it encourages people to not search jobs or only accept certain type of jobs (high paying jobs), which increases the amount of time someone is unemployed. If you are in desperate need for a job you will take any job available, but if you can afford to wait, then you will wait until you get a good job.