(Appendix) During the 2007–2009 recession, debate in the U.S. Senate over an extension of unemployment benefits to workers who had exhausted their benefits was often heated and contentious. A prominent U.S. senator stated that unemployment compensation

“doesn’t create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work.”

a. Do you agree or disagree with the senator’s statement? Explain your answer.

b. What arguments can you offer to rebut the senator’s position? LO7