Posted on 12/14/2010 10:39:14 AM PST by i88schwartz
"This tax package does a couple of things immediately for economic growth in Florida. Number one, for those folks looking for work right now, it extends their unemployment benefits. Two million people across the country would lose their unemployment benefits at the end of this month if we did not move forward on this tax agreement. And economists say that not only is that good for those families, it's good for the entire economy. It's probably the biggest boost that we can give an economy because those folks are most likely to spend the money with businesses, and that gives them customers," President Obama told Tampa Bay's Channel 8.
(Excerpt) Read more at realclearpolitics.com ...
The problem is, if businesses start spending and hiring (once they are sure the tax cuts have been extended), the economy will pick up. Unfortunately, Obama will say it is because of the extended unemployment, and stupid people will believe him.
Unemployment does not provide economic stimulus in the conventional sense. When they talk about stimulus of unemployment , they refer not to economic growth but to the artificial support of the economy delaying economic contraction, deflation and additional job losses due reduction in demand from people losing the purchasing power that unemployment benefits provide.
In effect, unemployment has temporarily put the brakes on the unstable downward spiral in unemployment where job loss leads to loss of purchasing power which leads to drop in economic demand which leads to more layoffs resulting in even higher unemployment and increased loss of purchasing power.
If unemployment safety net were cut off, we would get a downward spiral of the economy like the Great Depression.
The fundamental underlying problem here is that the Democrats have squandered our capitol reserves on a destructive economic stimulus package which has destroyed job growth and extended the time needed for an economic recovery. The end result will be increasing unemployment for an unnecessarily long period of time with and increasingly negative impact on the economy.
If more unemployment benefits are the answer, what is the question? Good heavens, I can’t believe this guy is in the White House!!
you gotta remember that where Obama comes from, “boost” is street slang for “steal”
Great video. He didn't sound like either elected party, both party's whose solution to everything is more printing and debt.
He sounded JUST like Peter Schiff who gives those lectures all the time and predicted the housing bubble crash when everyone else was claiming it was real growth:
Obama, Pelosi and Reid are doing their damdest to make that happen.
Saying that poop smells like roses does make it so.
LLS
So you’re a Yale man huh?
Now that's a real feather in Zero's cap....
I do a have a Post Graduate Degree in Applied Economics from the University of Hard Knocks.
I am not interested in anymore continuing education from that particular institution
I do a have a Post Graduate Degree in Applied Economics from the University of Hard Knocks.
I am not interested in anymore continuing education from that particular institution
I re read my post. I should have used the term unemployment insurance payments as opposed to unemployment in a few sentences.
My Bad.
No wonder you assumed I went to Yale :)
In Obama's English, words seem to represent the musical note of his voice at the moment, or the emotional feeling brought on by a favorite memory of ice cream, and nothing more.
Goodness, it is like we have time traveled back to the 70’s!
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