Mirror, Mirror - WSJ.com: "Krugman scoffs: 'To me, that's a bizarre point of view--but then, I don't live in Mr. Kyl's universe.'
What does textbook economics have to say about this question? Here is a passage from a textbook called 'Macroeconomics':
Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker's incentive to quickly find a new job. Generous unemployment benefits in some European countries are widely believed to be one of the main causes of 'Eurosclerosis,' the persistent high unemployment that affects a number of European countries.
So it turns out that what Krugman calls Sen. Kyl's 'bizarre point of view' is, in fact, textbook economics. The authors of that textbook are Paul Krugman and Robin Wells. Miss Wells is also known as Mrs. Paul Krugman."
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