NC’s Dropping Extended Unemployment Insurance Shows Fiscal Responsibility

Cue the Far Left Occupy Monday outrage machine  in 3…2…1….

Apparently, North Carolina’s decision in not extending unemployment insurance, in order to avoid accumulating more debt on top of the massive totals built up by former Governor Perdue before she fled after one term, as people noticing.


Last summer, North Carolina Republicans, who took control of state government for the first time in over a century in 2012, exited the federal government’s extended-benefits program for unemployment insurance, and in doing so made the politically difficult but fiscally prudent decision to focus on putting people back to work and paying off the state’s more than $2 billion debt to the federal government. Lawmakers on Capitol Hill should take note of the results that have since ensued in the Tar Heel State.

Since ending long-term unemployment benefits, the rate of job growth in North Carolina has seen a marked uptick and the unemployment rate has gone down at a much faster rate than the nation as a whole. The state’s unemployment rate dropped from 8.1 percent in July of 2013, the month extended federal unemployment benefits ended in North Carolina, to 6.4 percent in February of this year. This 20 percent reduction in the state’s unemployment rate is well over double the eight percent drop in unemployment that occurred nationally during that time.

I’m sure before the end of the morning Democracy NC, Progress Action NC, PolicyWatch and a host of other Moral Monday participating BlueprintNC Partners will have scathing op-eds up debunking this horrifying piece of success. They have to, they and Kay Hagan are both called out in the Forbes piece:

Critics of the decision to end extended unemployment benefits in North Carolina – such as Senator Kay Hagan (D-N.C.) and the so-called “Moral Monday” protestors who have brought the toxicity of state politics to new heights by accusing those with whom they have policy disagreements of being immoral – have been left looking a bit foolish and have no answers for why their dire prognostications did not come to fruition. 


Senator Hagan, considered one of the most vulnerable Democrats up for reelection in 2014, has been very critical of the North Carolina legislature’s decision to end long term unemployment benefits, calling it “cold-hearted.” Hagan is certainly entitled to her own opinions, but not her own facts, and the facts coming out of her home state underscore the deleterious economic effect that comes with paying people to not work for nearly two years.

Hagan and others on the Left contend that North Carolina’s improving unemployment rate is mainly due to a reduction in labor force participation. NBC’s Chuck Todd repeated this line on air just this week. The only problem is it’s not true. As Wells FargoWFC +0.35% senior economist Mark Vitner points out in a December 2013 report, the main reason for the drop in North Carolina’s unemployment rate is people taking jobs, not dropping out of the labor force.

OUCH!  The article wraps up by telling other states to follow our lead and retroactively dump Reid and Obama’s extended unemployment insurance.

About A.P. Dillon

A.P. Dillon is a reporter currently writing at The North State Journal. She resides in the Triangle area of North Carolina. Find her on Twitter: @APDillon_ Tips:
This entry was posted in BlueprintNC, Democrats, Moral Monday, NCGA, Senate 2014 and tagged , . Bookmark the permalink.