Boosting Unemployment Insurance Leads to Higher Output and Employment Rates
Unemployment insurance can help boost the economy by increasing consumer demand, leading to higher output and employment. This is especially true when unemployed people spend more of their benefits compared to those who are employed. In the U.S. from 2008 to 2014, extending unemployment benefits had a positive impact on the economy, with the unemployment rate potentially being 0.4 percentage points higher without these extensions.