Although the economy is rebounding, the unemployment rate remains high and private sector job gains remain weak. economists debate whether extending unemployment benefits keep unemployment artificially high by discouraging work.

For years, economists have debated the wisdom of increasing government spending during recessions. On the one hand, increased spending adds to budget deficits, but on the other, increased spending can stimulate the economy during a downturn, thus speeding recovery. Deficits topped $1.4 trillion...