Posted on 08/11/2011 9:03:21 AM PDT by Dubya-M-DeesWent2SyriaStupid!
"I understand why extending unemployment insurance provides relief to people who need it, but how does that create jobs," Wall Street Journal's Laura Meckler asked Jay Carney at Wednesday's WH briefing. Carney responded: "Oh, uh, it is by, uh, I would expect a reporter from the Wall Street Journal would know this as part of the entrance exam." "There are few other ways that can directly put money into the economy than applying unemployment insurance," Carney said. Carney answers the question: "It is one of the most direct ways to infuse money directly into the economy because people who are unemployed and obviously aren't running a paycheck are going to spend the money that they get. They're not going to save it, they're going to spend it. And with unemployment insurance, that way, the money goes directly back into the economy, dollar for dollar virtually." "Every place that, that money is spent has added business and that creates growth and income for businesses that leads them to decisions about jobs, more hiring. So, there are few other ways that can directly put money into the economy than applying unemployment insurance, Carney said.
(Excerpt) Read more at realclearpolitics.com ...
Using your logic: if all the ATMs were replaced with bank branches open 24 hours and staffed with tellers, we'd all be better off.
Oh, oh, can you spend straw into gold???
Carney, you moron, for every dollar given out for unemployment, several are taxed or borrowed out of the economy, COSTING jobs.
Ever heard of the broken window fallacy, you idiot?!!!
Based on Carney’s reasoning, maybe we should extend unemployment benefits to the 95% of the world’s population who are not American citizens or green card holders. Think about all the jobs that would create.
You COULD argue that unemployment benefits stimulates work for the people who ADMINISTER the benefits.
Hey, speaking of dog. I haven’t been Bo for awhile....hmmmm.
The hell with unemployment benefits how about employment.
Putting 25 million un/under employed back earning money, paying taxes and buying things would solve a lot of our problems.
"Sorry, but say I bring home 4500$ per month. In the state of TX, that is 340$ a week max UE. That money is not going to the stimulate the economy. These people are idiots."
"Let me be clear......those calling me an idiot just need to eat their peas and shut up"
Rant by black comedian Felonious Munk ripping Obama (WARNING GRAPHIC LANGUAGE)
and also beer and lottery tickets
D. oh.
That may be true but please don't sell me the idea with the promise that it's going to create jobs when in reality the unemployment rate increases from 7.2% to 9.2% after the stimulus money has been passed out.
obama will lose in a landslide....
How does this create jobs?
The same way smashing windows “creates jobs.”
Yes she did. It must be what demRat's really believe
There are some states that people have collected for six years.
I know... let’s give all the jobs remaining to a communist country called china and everyone can live off the goverment on UI. And how about all of the senate and congress, POTUS, VP resign and they can collect UI. We can all sit home and eat foods that will tick off MO. Or better yet Obama can just cut a sapling from is money tree and we all pass it on?
I think the question here is are these people actually this stupid, or are these all lies?
Next we'll be promoting our latest "green manufacturing job". The one where we start manufacturing those generators that produce enough energy to run itself and everything else we need.
If we just wish really, really hard we can make it so...I promise.
hahahahahahahaha
these people are morons
And THAT is what is anathema to the Communist or Socialist.
THAT is what the current administration is striving against. They can deny all they want. Their actions speak volumes and betray their thoughts.
This is from and email exchange with a lib friend from several months ago, but it seems to fit this discussion...
The recent battles over whether to let the tax rates set in 2001 and 2003 expire and the accompanying battle over whether to extend unemployment payments past the 99 week maximum have led to some logically flawed assertions. My personal favorite is “the unemployed, unlike the rich…, are, in fact, the job creators.” I think I follow the logic, flawed though it might be. The idea is that money given to the unemployed will be spent on consumer items creating demand that will then be satisfied with higher production. Inclusion of the phrase “unlike the rich” suggests that this argument is being combined with the desire of the left to raise the tax rates on “the rich” to pay for the extended unemployment payments. That is where the logic breaks down.
Put in real terms, this idea consists of taking money from a business to give to an individual so that individual can turn around and buy products from the business. No wealth is created in this scenario, it is only transferred, by force, from the business to the individual… from those that produced the wealth to those that did not. (Or if you prefer, from those who have accumulated work tokens to those that have not.)
And, of course, the waste inherent in the transfer actually adds an additional loss for the business because a portion gets siphoned off to pay for the government bureaucracy that uses the force to take the money in the first place.
There are only three ways this scenario can be financed, taking money from producers as discussed above, paying out the money with debt or literally printing more money.
If the unemployment or other “entitlement” benefits are paid with debt, the net effect is still negative because the higher national debt dampens future wealth creation because the service on that debt will have to be paid with future wealth… although this scenario offers the only real hope of a stimulating effect.
If the payments are made with money that was simply created from the treasury, the net effect is also negative because the dollars being used are worth less because quantitative easing simply divides existing wealth into more individual dollars, it does not increase the total wealth. Remember, wealth is simply accumulated work tokens. If you print more paper representations of work tokens than there are actual work tokens, each piece of paper is worth fewer work tokens.
Even corresponding spending cuts that offset the cost of the unemployment payments have only modest simulative effect since the debt is already high and the expenditures in other government programs would be lowered thereby taking that money out of play and putting it in play in another area… namely unemployment payments.
All this ignores the simple fact that “giving” a reduction in tax rates (even though this is maintaining an existing tax rate) is not the same as giving money. Maintaining a lower tax rate or cutting a tax rate is NOT TAKING THE MONEY in the first place. It doesn’t go on the expense side of the ledger, but on the income side.
I’m sure the next argument is that all the rich people are not, in fact, business owners. I really don’t know how many are and neither does anyone else. Presumably, most of the top earners are stockholders in various companies. That makes them at least part owner. They may not have a controlling interest or be in a position to affect hiring decisions, but their investment in a company puts more funds under the control of those that do have hiring control. Even if the rich only put the money in the bank, the bank uses that money to lend to businesses and individuals or to invest in businesses.
Giving… and I mean really giving… money or any other “stuff” to the people who do not produce has no simulative effect. NOT taking it away from people of any income level but especially not taking more from the best producers…“the rich”… does. Giving money to non-producers generates no wealth unless the recipients perform some service of some value… in other words produce.
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