Does the existence of unemployment compensation eliminate the economic costs of unemployment?

0 ⤊

Does the existence of unemployment compensation eliminate the economic costs of unemployment?

2007-11-18 15:43:30 · 2 answers · asked by shawna9811 1 in Social Science ➔ Economics

2 answers

Most people can't live on their wage.
Unemployment pays only a fraction of your wage.
It is not something to retire on.

2007-11-18 15:55:03 · answer #1 · answered by dude 7 · 0⤊ 0⤋

The economic loss of unemployment is the loss of the productive use of labor. Unemployment compensation alleviates the personal suffering, but the money is transferred from people who are employed, so there is no net increase to the economy.

2007-11-18 16:52:14 · answer #2 · answered by meg 7 · 0⤊ 0⤋