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Comment by bumby

Even common sense needs to be validated though. There are always "common sense" solutions that end up being wrong, often because they are an overly simplistic model.

There was an interesting outcome of some states stopping benefits because common sense said that would make people more pressured to go back to work. This was essentially a large-scale economics experiment.

"25% of the workers who lost their benefits in June had gone back to work by August. Now, in states that left the benefits in place, 21% of unemployed people found jobs. So there was only a four percentage point difference when these benefits went away...And what this means is those states that ended benefits early, they turned down billions of dollars in federal unemployment aid, and it ended up backfiring for their local economies."[1]

The "common sense" solution to helping their economy may have actually hurt their economy.

[1] https://www.npr.org/transcripts/1034965231

parent bumby 5 years ago

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