As always, Tam at View From The Porch, nails it. Has there ever been a better paragraph than this:
When unemployment pays almost as much as the available jobs, work is disincentivized. Remember: If you want less of something, like tobacco or income, tax it. If you want more of something, like tobacco or unemployment, subsidize it. (And if you want proof that our government is crazy, roll those two sentences around in your head for awhile…)
Hat tip to The Whited Sepulchre for the initial story.