Derek Thompson from The Atlantic had an interesting debate with the Cato Institute's Alan Reynolds regarding the need for an extension of unemployment benefits.

Reynolds thinks benefits should not be extended any longer because they provide an incentive to not seek employment, and Thompson counters by arguing the unwillingness of employers to hire workers negates that principle ...

The primary reason 15 million Americans are still out of work is that employers are not hiring. Employers are not hiring because there is no demand for their products and services. One way to juice short-term demand for their products and services is to put money in the hands of Americans most likely to spend their next dollar and get money churning throughout the economy, which can be paid back to the government in the form of taxes from those transactions, and from future transactions when we've achieved healthier employment and sustainable long-term growth.

This is about right. One of the curious realities of economic recessions is that the only surefire way to combat it is through increased demand, but the pyschology of recession - coupled with the actual contractions of the market - result in the exact opposite.

It's also why a proposal to slash $300 million from the state's higher education system, including 1,418 layoffs in the Athens-Clarke County metro area, will do absolutely nothing to righten the economic ship. By curbing spending and laying off workers, demand will continue to weaken and meaningful recovery will get delayed even more.