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White House Thinks Unemployment Creates Jobs
Townhall.com ^ | August 14, 2011 | Mike Shedlock

Posted on 08/14/2011 8:00:42 AM PDT by Kaslin

Real Clear Politics notes Unemployment Benefits Could Create Up To 1 Million Jobs

"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.
So there you have it. The unemployed create jobs. If only we had millions more unemployed, we could create millions more jobs, simply by giving the unemployed more money. 

I suppose we could triple unemployment benefits and create three times as many jobs on the theory that the unemployed would still spend every penny of three times as much money. 

We could be even more creative and extend unemployment benefits to infinity thereby creating an infinite number of jobs. However, creation of an infinite number of jobs would sound unrealistic as a news headline, even for a liberal media, if only barely. So let's just do this for three more years at three times the benefits. 

I have the headline ready: "Obama to create 9 million jobs by giving the unemployed three times as much money if they agree to spend it." 

Addendum: 

A couple of people argued spending will create jobs but asked "how many?" Certainly 1 million seems ridiculous. 

More to the heart of the matter, to paraphrase a response from "Fedwatcher", such activities will create jobs but not efficiently or permanently. 

Therein is the crux of the matter. Certainly if the government gave $20,000 to everyone who was unemployed we would see a burst of activity, followed by another crash. Throwing money around does not create lasting jobs, only another heroin high. 

Worse yet, in response to stimulus, businesses may invest more in productive capacity only to find out as the stimulus wore off, they really didn't need it. Heaven help any business that borrows money on such false signals.


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: unemployment
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1 posted on 08/14/2011 8:00:46 AM PDT by Kaslin
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To: Kaslin
It does help fill up the cubicles in the unemployment office.
2 posted on 08/14/2011 8:05:01 AM PDT by tsowellfan
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To: Kaslin
Unemployment Creates Jobs

It does. For the bureaucrats who administer it.

And, in their own enlightened self-interest, they wouldn't want unemployment to go down, because that might mean they'd lose their own job. Such is the "big lie" of bureaucracy - they don't want to solve the problem they're working on. In fact, they get more job security if the problem gets worse.

3 posted on 08/14/2011 8:05:10 AM PDT by P.O.E. (Pray for America)
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To: Kaslin

bump


4 posted on 08/14/2011 8:05:32 AM PDT by lowbridge (Rep. Dingell: "Its taken a long time.....to control the people.")
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To: Kaslin
"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."

Of course - it all comes from the Great Unicorn.


5 posted on 08/14/2011 8:05:40 AM PDT by Iron Munro (One Trillion seconds = 31,709.79 YEARS / One Trillion dollars = Obama's spending for 3 months)
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To: Kaslin

We need to give Obama a taste of unemployment. Let him see how it feels to lose his job.


6 posted on 08/14/2011 8:08:01 AM PDT by Starboard
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To: Kaslin

Let’s break some windows and get the glass boys economically stimulated!


7 posted on 08/14/2011 8:08:46 AM PDT by Lady Lucky
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To: Kaslin

Actually, he will be proven right, right after he is unemployed as president.


8 posted on 08/14/2011 8:08:52 AM PDT by RetSignman (It's Summertime...the "Goebbles Warmers" are back from hibernation.)
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To: tsowellfan

As far as I know there are no unemployment offices anymore. Everything is either done online or over the phone


9 posted on 08/14/2011 8:09:44 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

http://www.youtube.com/watch?v=aKxfxixwdXE&feature=player_embedded

vob


10 posted on 08/14/2011 8:10:01 AM PDT by Vob (free radical community organizer)
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To: Kaslin
As far as I know there are no unemployment offices anymore. Everything is either done online or over the phone

Phones, the Internet. Well, there's 2 new things Obama can blame for this depression.

He's already used ATM Machines

11 posted on 08/14/2011 8:14:16 AM PDT by tsowellfan
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To: Starboard

Even when we “unemploy him”, he still gets his salary for life, unless he is impeached and convicted.


12 posted on 08/14/2011 8:14:38 AM PDT by anoldafvet (17 months until we're rid of "The Boy Blunder".)
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To: P.O.E.

“Such is the “big lie” of bureaucracy - they don’t want to solve the problem they’re working on.”

BINGO!!!! IMO this is and will be the best post of the day. It is so true — you must have worked around bureaucrats like I have. Rarely, if ever, do they show any real compassion for their constituients.

However, their energy and enginuity are amazing when it comes to protecting and expanding their job security and organizational empires. The worst thing that can happen to a bureaucrat is for their program to be scaled back or shut down.


13 posted on 08/14/2011 8:15:18 AM PDT by Starboard
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To: Kaslin
"There are few other ways that can directly put money into the economy than applying unemployment insurance"

Well, there is always the opportunity to put everyone on welfare. That'll grow the Kenyanesian Economy fur sure.

14 posted on 08/14/2011 8:17:55 AM PDT by Paladin2
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To: Kaslin
GREAT ASININE POLITICAL QUOTES

“Unemployment checks are the fastest way to create jobs.”

-- Nancy Pelosi, Jul 2, 2010


15 posted on 08/14/2011 8:18:58 AM PDT by Iron Munro (One Trillion seconds = 31,709.79 YEARS / One Trillion dollars = Obama's spending for 3 months)
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To: Kaslin

Sure unemployment creates jobs... jobs for government workers that are needed to run the support system the the Naked Emperor wants to set up to make permanent joblessness just another lifestyle choice...


16 posted on 08/14/2011 8:21:30 AM PDT by Keith in Iowa (Hope & Change - I'm out of hope, and change is all I have left every week | FR Class of 1998 |)
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To: Iron Munro

Then why haven’t they. If that was true, there should be no unemployment and I mean that literally. Don’t you agree?


17 posted on 08/14/2011 8:22:07 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

When up is down and right is left it all makes sense.


18 posted on 08/14/2011 8:22:28 AM PDT by cableguymn
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To: Iron Munro
GREAT ASININE POLITICAL QUOTES “Unemployment checks are the fastest way to create jobs.” -- Nancy Pelosi, Jul 2, 2010

Future people will look at quotes like these in shock.

This period of history will be seen as a time when moral corruption hit the singularity.

19 posted on 08/14/2011 8:25:12 AM PDT by Talisker (History will show the Illuminati won the ultimate Darwin Award.)
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To: Starboard
Guess what the govies are busy doing right now (question for those who haven't seen the inside of the beast)?

They are scrambling to make sure that they spend all of the remaining FY10 $$. The current FY ends Sep 30th and they scramble to spend it all so their budget is reduced for FY11 as of Oct 1st.

20 posted on 08/14/2011 8:25:23 AM PDT by Thom Pain (ABO)
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