This goes counter to both common sense and what Krugman himself (along with his wife, also an economist) wrote in his textbook, 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.

In unemployment compensation, you’ve got a system in which you’re paying people to not work. The marginal increase that they get to return to work is much lower than it would be if they weren’t receiving unemployment compensation. If you’re receiving $400/week to not work, would you take a full-time job that pays $10(or less) per hour? Not likely, even if that were the only job offer you had. What if the job paid $12/hour? Effectively, you’d be working 40 hours per week for an additional $80(before taxes). There are a lot of people who won’t take that tradeoff…$400 to do whatever I want all week, or $480 to bust my butt for 40 hours per week? Some people would value that extra leisure time even more than that. They may not go back to work even for $18/hour, so long as they’re already getting paid.

And that’s only the people who are looking at a tradeoff between more income and leisure time. I’m sure there are some people collecting unemployment compensation right now who have no intention of going back to work in the near future. Some have gone back to school, some will become stay-at-home parents, some will retire. But, hey, why acknowledge those truths now, if claiming to be looking for work will get you “free money”?

It’s only common sense that extending benefits will lead to an overall increase in unemployment, as we currently measure it. Paul Krugman used to have common sense. He’s since adopted the left’s lack thereof.

“One of the things that I have learned in Washington is you have to repeat yourself a lot because unfortunately it doesn’t penetrate.”

William James (1842-1910) The father of modern Psychology

If corporations didn’t pay this money to the government, much of it would be paid out in dividends to stockholders, or wages and salaries to employees. These payouts would result in taxable income to those who receive this money. What point is there in holding on to any of that money rather than pay it out to stockholders or employees? Perhaps expansion? Who wouldn’t want to make it easier for American companies to expand?

This would seem to put small businesses at a disadvantage, as they would pay tax even on the money they save for expansion. To level the playing field, I would offer the small businesses tax exemptions for money put into special savings accounts. As long as the money is left in the account, it isn’t taxed. If it’s taken out and used for legitimate business expenses, it isn’t taxed. It’s only taxed if it’s paid out to the owner, or on of the owner’s employees, much like the corporations’ money being taxed when it’s paid out.

I’d also set out to find any savings that could be wrung out of government. Small stuff, big stuff, anything. I’d start with elimination $1 bills and pennies. Low hanging fruit if I ever saw it.

I’d also have policy meetings, where all of this was hashed out, and I’d televise any of them where national security would allow it. No, really! I know Obama says he will, but there’s no way he could. Elected officials cut so many deals, there’s no way they could get reelected if everybody knew about them. Being a dictator, I wouldn’t have to pander to special interests or worry about reelection.

I hate that they use “trousers” rather than pants so much in this one, but it’s got to be the best pants-related news story I’ve seen so far:

Defective automatic trousers hurl pilot from plane

A Swedish pilot was flung out of his aircraft by a malfunctioning pair of hi-tech trousers, it has been revealed.

The incident, which took place last week, was reported in The Local yesterday. It seems the stick-jockey in question was a Swedish air force officer flying a Saab Gripen fighter.

Fighter pilots typically wear a “G-suit”, also known as “speed jeans”. This is a pair of special inflatable trousers which are automatically pumped up as G-forces build up in high-energy manoeuvres. The squeeze on the pilot’s legs prevents all his blood draining into them, which helps in avoiding blackouts or tunnel vision.

In this case, however, it appears that the automated expando-pants tragically malfunctioned, triggering the luckless birdman’s ejection seat and firing him violently out of the jet. The Gripen subsequently plunged to total destruction in a remote region, but the pilot parachuted to safety.

Baggy Pants Law Falls Short

Looks like a “no go” for a bill banning baggy pants in Florida schools.

Man pleads guilty to smuggling meth in cargo pants

An East Palo Alto man has pleaded guilty to charges that he tried to smuggle six bags containing nearly 3 pounds of methamphetamine in his cargo pants while trying to board a Hawaiian Airlines flight in San Jose.

Is that a baggie of meth in your pocket, or are you happy to see me?

Norwegian skydiver arrested for mooning cop

An arrest report says Vegard Svarstad was blocking traffic at a DeLand intersection early Saturday. When police Lieutenant David Heinig stopped at the intersection, he told Svarstad to continue across the street….Instead, Heinig says the man started to dance around, pulled down his pants and mooned the officer.

Really, I’m going to try to update this blog more often with these links. I also mean to write actual blog posts. If I don’t, it’s all the fault of myspace.

The victim told police he left the game shop where he worked to go to the bank at 9:30 a.m. May 12 when he saw two men inside a silver Chevrolet Cavalier parked beside his car.

As he tried to enter his vehicle, police said, one of the men shoved him inside, pointed a gun, uttered an obscenity and told him to remove his pants. The man threatened to shoot him because he wasn’t doing it fast enough, police said.

He yelled at the victim not to look at him and grabbed his pants, car keys, pocket knife, wallet, cell phone and $250 cash before fleeing, police said.

Not really newsy, but The adventures of Mr. Wiggly and the magic opossum pants

Dear reader, if you have been following the adventures of Mr. Wiggly to this point, we have seen two episodes without the appearance of the much lauded magic opossum pants. Let me assure you, in this episode, there will be magic opossum pants. Though it must be honestly mentioned, it might be sometime before Mr. Wiggly determines their use.

Drunk driver caught in car with pants down

A drunk driver was caught with his pants down after police spotted him making love to his girlfriend on the side of the road.

Next to nothing: Nundies offer a fashionable option

Tight jeans or other form-fitting pants have long left females with the same fashion Catch-22. Wear underwear so if you are in a car accident at least your mother would not be mortified, or go without underwear to eliminate those horrible panty lines which also do not make mama proud. A new product called Nundies is attempting to provide a solution.

Apopka Fire Chief Fired After Allegedly Dropping Pants

Apopka Chief Administrator Richard Anderson said Chief Randall Fernandez was relieved of duty, but Anderson would not elaborate about what happened.

Two witnesses said Fernandez dropped his pants in front of a crowd at Anderson’s retirement party.

New Zealand public loos can be so unsanitary that people would rather go in their pants than have to use them, an Otago University lecturer says.

They should use astronaut diapers.

Baby arrives so quickly he’s suddenly in mom’s pants

“It happened so fast,” Rebecca Johnson, 24, told the Daily Courier in Connellsville. “I didn’t know what happened until he was in my pant leg.”

I’d bet many women would love to have deliveries so pain-free that they missed them completely.

Man shot in robbery at barber shop, dies

A Birmingham man died Saturday after being shot earlier as he sat in a chair at a Center Point barber shop, authorities said.

A man with a gun entered Lil D’s Barber Shop at 1657 Center Point Road around 6:30 p.m. and ordered two patrons and the owner to remove their pants.

The victim, 40-year-old Jade Amos, was shot as he lifted the barbers’ covering to begin removing his pants, according to Jefferson County Sheriff Department spokesman Randy Christian.

A woman and a 5-year-old boy in the shop were not robbed or injured, Christian said.

The suspect, who wore a ski mask, a gray, hooded sweat jacket, a black shirt and black Dickies pants, was about 6′4″ and 18 to 20 years old, Christian said. After the shooting, the suspect gathered the pants and ran out.