Thursday, July 8, 2010

Logic v. Emotion

There are two recent op-eds that illustrate rather succinctly what motivates the opposite ends of our political spectrum. From the right comes Art Laffer's piece that appeared in the WSJ this morning titled Unemployment Benefits Aren't Stimulus:

The most obvious argument against extending or raising unemployment benefits is that it will make being unemployed either more attractive or less unattractive, and thereby lead to higher unemployment. Empirical research supports this view.
The Democratic retort is that the economy today is so different from the past that we have to suspend our traditional understanding of economics. With five job seekers for every job opening, the unemployed are desperate for work and increasing unemployment benefits will have very little if any disincentive effect. This view hinges on a total change in employee behavior from "normal" times to the current period of "the Great Recession."

 From the left we have Paul Krugman writing a recent piece in the NY Times titled Punishing the Jobless:
Today, American workers face the worst job market since the Great Depression, with five job seekers for every job opening, with the average spell of unemployment now at 35 weeks. Yet the Senate went home for the holiday weekend without extending benefits. How was that possible?
The answer is that we’re facing a coalition of the heartless, the clueless and the confused. Nothing can be done about the first group, and probably not much about the second. But maybe it’s possible to clear up some of the confusion.
By the heartless, I mean Republicans who have made the cynical calculation that blocking anything President Obama tries to do — including, or perhaps especially, anything that might alleviate the nation’s economic pain — improves their chances in the midterm elections. Don’t pretend to be shocked: you know they’re out there, and make up a large share of the G.O.P. caucus.
 The questions we should ask ourselves are these: do we make better, more informed decisions using logic or emotion; and which of the authors makes the more logical argument?

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