Would spending more money on unemployment benefits create jobs? The Congressional Budget Office (CBO) thinks so.

According to a new CBO report, extending the current 73 weeks of unemployment insurance (UI) benefits would lead employers to create 300,000 new jobs.

This seems highly implausible. Economists widely agree that UI causes workers to spend more time unemployed.

So how did the CBO conclude that UI spending creates jobs? Their assumptions virtually dictated the conclusion.

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