According to a recent study, many states that cut back unemployment benefits post-recession actually experienced minimal savings.
The Economic Policy Institute (EPI) issued the study and discovered that six of eight states that cut benefits didn’t have significant savings as a result. In fact, the states saved merely 37 cents per week for every employed worker in their state. This is in comparison to the $252 lost by unemployed workers on a weekly basis.
In a statement, Joshua Smith, one of the study’s authors, said:
“The key to prevent unemployment trust funds from becoming insolvent is to raise more revenue in good times to be able to spend it in bad times. The wave of insolvency in state unemployment insurance accounts in the aftermath of the Great Recession was the result of policymakers’ failure to follow that simple rule.”