Paul Krugman: The Fear Economy

More than a million unemployed Americans are about to get the cruelest of Christmas “gifts.” They’re about to have their unemployment benefits cut off. You see, Republicans in Congress insist that if you haven’t found a job after months of searching, it must be because you aren’t trying hard enough. So you need an extra incentive in the form of sheer desperation.

As a result, the plight of the unemployed, already terrible, is about to get even worse. Obviously
those who have jobs are much better off. Yet the continuing weakness of the labor market takes a
toll on them, too. So let’s talk a bit about the plight of the employed.