Long term unemployment benefits were allowed to lapse by Congress. Almost immediately the unemployment rate dropped. If you think this was a coincidence, I have a bridge in Brooklyn I'd like to sell you.
Literally thousands of people said to themselves, "You aren't going to pay me to stay home any more? I guess I'll have to get a job, even if it's a suboptimal one."
One of the oldest, truest adages about human (and animal) behavior is that if you reward a behavior you'll get more of it. Unemployment payments reward non-working, making it more palatable/less painful.
Stop the payments, whereupon non-working becomes less palatable, more painful. Expect people to take a job maybe they aren't in love with, when the unemployment checks stop.
See what Dr. Charles Krauthammer says about this on the National Review website blog The Corner, NR has video as well as text. Hat tip to Instapundit for the link.
