[Krugman's] 1/27/04 assertion that the cost of unemployment insurance "automatically" adds to the federal deficit. This two-fer misrepresents a pair of facts: that unemployment insurance is largely borne by the states, and that major federal contributions to the states come about only because of an act of Congress, which is hardly automatic.Obviously this quibble over Krugman's use of the word "automatic" has no relevance at all to Okrent's original charge: that Krugman misrepresents the numbers. Presumably this is why Krugman and DeLong ignore it.
"The system of unemployment insurance automatically raises transfer payments when the economy moves into a recession, because unemployment rises." [Mankiw, Macroeconomics, 1992, pp. 324-5]which is something you'll find in pretty much any macro textbook, whether written by a conservative or a liberal. And which is almost exactly what Krugman originally wrote. Let me join with Jonathan Chait is saying that Okrent ought to be ashamed.