The Stimulus Will Cost Jobs

Foxnews ^ | 02/04/2009 | John Lott

[fiscon1]

President Obama and the Democrats’ “stimulus” package will increase the unemployment rate. The changes they propose will also make us poorer, with fewer, less productive jobs.

The most obvious explanation is the $36 billion in increased unemployment insurance benefits. Larger benefits at least for this year will encourage some people, who may be unhappy with their jobs, to be unemployed while they look for something better. Others will be a little more reluctant to take a new job when they are offered it. Unlike the rest of the “stimulus” package that is over two years, since the increased benefits are only planned for this year, the higher payments will increase unemployment this year and then start declining soon after the extension ends.

Yet, the “stimulus” package will do something else that will increase unemployment at least as much. Most of the new jobs will be for people who are currently employed. By moving money from places where it is currently being spent to places where the government wants it spent, you move the jobs also. But it takes time for people to move between jobs. That is called unemployment

[Cindy]

http://www.freerepublic.com/focus/chat/2136635/posts
“Are you Looking For A Job?”
(Note: Regularly updated thread.)

[Cindy]

M.O.C.
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[Cindy]

[nyconse]

If you quit a job in my state, you can’t collect unemployment so this is nonsense. Also, my husband has been looking-soon to be laid off-there is nothing right now. People are lucky enough to still have jobs for now do not get that. Unemployment is something you pay into your entire working career...my husband never used it before. What you want people starving instead?...geez even target in our area is laying off.

[arthurus]

The stimulus must cost jobs because it is an inefficient allocation of resources. Allowing the market to work without redirecting capital to suit political goals makes for more economic activity and more jobs and higher incomes and more prosperity.