Unemployment Creates Jobs 2
Politicians navigating the shoals of a sputtering economy used to sell unemployment benefits as an economic life-raft: temporary relief for displaced workers providing time for an economic rescue plan to take hold. I hope you all enjoy small open boats, because the raft is now the rescue.
By now you've seen Nancy Pelosi explain that unemployment checks are the best stimulus available. Today Madam Speaker is joined by the Greek chorus at the San Jose Mercury News:
The GOP's current argument [that benefit extension should not add to the deficit] makes no economic sense. Moody's chief economist Mark Zandi estimates that every dollar of jobless benefits, which are immediately pumped back into the economy, creates $1.61 in gross domestic product. It may be the most effective form of stimulus, and therefore job creation, available.
I know it helps, but is swearing off logic now an absolute prerequisite to becoming a liberal politician or editorial writer? According to the Merc, those dastardly and powerful Republicans are standing athwart a proven way to grow the economy by 61% per federal dollar spent.
And why isn't at least part of the story the fact that Democrats would rather kill unemployment benefit extension than reallocate 0.85% of the existing budget away from other forms of "stimulus"?
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Jun '10
Re: Unemployment Creates Jobs 2
Well then, since every dollar spent on unemployment benefits creates $1.61 in GDP, the higher the unemployment, the better for our economy. If one believes that the government is the magical source of money, then it is perfectly logical. We should all quit working and patriotically start collecting unemployment.
Re: Unemployment Creates Jobs 2
No kidding George, if we all go on unemployment, we would have tremendous growth! This could be the answer, first let's run it by the editor at the Merc, and if he approves we will move up to Obama's folks.