Paul said on "Fox News Sunday" a proposal in Congress to extend payments past 26 weeks would backfire because it would label recipients as risky long-term unemployed.
"I do support unemployment benefits for the 26 weeks that they're paid for," Paul said. "If you extend it beyond that, you do a disservice to these workers."
"There was a study that came out a few months ago, and it said, if you have a worker that's been unemployed for four weeks and on unemployment insurance and one that's on 99 weeks, which would you hire?" Paul said. "Every employer said they will always hire the person who's been out of work four weeks."
Paul chided the Obama administration for what he said was a failed policy based on ineffective economic stimulus. He urged instead a slashing of business taxes so up-and-coming entrepreneurs could thrive.
"With this stimulus that I'm talking about, a free market stimulus, you simply leave the money in the hands of those who earned it," Paul said. "So the customers have actually picked out the successful people, the ones they choose to buy products from. Those people get more money."
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