00:01
We're taking a look at a concept of unemployment, which is the unemployment insurance payments that governments pay out.
00:07
Most of us are familiar with these.
00:09
We'd like to just know what effect the unemployment insurance payments have on both the unemployment rate and the severity of recessions.
00:16
So thinking first in terms of the unemployment rate, if people who are unemployed are receiving payments for being unemployed, it seems likely that this insurance payment program isn't necessarily going to decrease the rate of unemployment.
00:30
Now, it might be flawed to say that it increases the rate of unemployment because i wouldn't necessarily say that people quit their jobs for the purpose of getting unemployment insurance payments.
00:39
However, it might not have really any effect on this unemployment rate.
00:44
It may just let it sit idle.
00:46
So the unemployment rate may increase due to some other factors, but it may not necessarily decrease as a result of these unemployment insurance payments...