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To: i88schwartz
They say this crap all the time and it makes no sense at all.

Scenario A) Unemployed person gets a check, goes to the store and buys food, a magazine and some socks. Does this "grow" the economy? Not a chance. It sustains some existing businesses, at best.

Scenario B) Millionaires keep the money they have worked for. They invest in their own business or in the businesses of others. Factories are built, distribution channels are expanded, exports increase, workforces expand. Does this "grow" the economy? You bet.

The idea that unemployment checks stimulate the economy is something that stupid people say.

8 posted on 12/14/2010 10:43:55 AM PST by ClearCase_guy
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To: ClearCase_guy

Well stated, my friend!


16 posted on 12/14/2010 10:53:25 AM PST by jennings2004 (Sarah Palin: "The bright light at the end of a very dark tunnel!")
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To: ClearCase_guy
The idea that unemployment checks stimulate the economy is something that stupid people say.

Total agreement ... the idiocy of our esteemed leaders in frightening.

Worse: Our enemies look at our situation like we're incredibly dangerous morons.

32 posted on 12/14/2010 11:17:42 AM PST by Centurion2000 (Any economy based on Keynesian principles and practices are always ponzi/pyramid schemes.)
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To: ClearCase_guy
Scenario A) Unemployed person gets a check, goes to the store and buys food, a magazine and some socks. Does this "grow" the economy? Not a chance. It sustains some existing businesses, at best.

The money to pay for the unemployment results in increased taxes for the small business owners and they lay off workers.

35 posted on 12/14/2010 11:24:25 AM PST by mbynack (Retired USAF SMSgt)
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