States gear up to provide jobless benefits

This article discusses the benefits that Hurricane Katrina victims are receiving. Most are in the range of $210 - $260 per week. Since most everyone is without a job, the article says that many people are rushing to get the state aid and others are rushing to look for new jobs. I'm sure that it is difficult for everyone to return to work or find new work right now, at least until their lives are under control. The shapes of people's indifference curves will determine who goes back to work as soon as possible and who uses the state aid for as long as possible. (I am certainly not criticizing the use governmental aid, of course these people need help. Undoubtedly though, there will be those people who rely on the aid longer than necessary.) To some, this contribution may act as the income or lottery effect. As long as people are receiving the extra money, they may feel wealthier and work less.