White House Thinks Unemployment Creates Jobs

Townhall.com ^ | August 14, 2011 | Mike Shedlock

[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.

[emax]

And I’m pretty sure the White House also thinks Americans want to pay higher taxes, with the tax money going to help reconstruct cities that are in need of tax money to help them achieve greatness and what not.

[CharlyFord]

Actually, unemployment creating jobs fits very nicely in the Keynesian Economics concept. “Keynesian economics argues that private sector decisions lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the public sector”. Further, the followers of Keynesian Economics in Washington think that all wealth originates with the Government. That’s how the Wicked Witch of the West, Nancy Pelosi can think that she is “saving the World” by printing more money.

We got in this mess by years of Marxist professors in universities teaching screwball economics. A high percentage of people (voters) don’t understand that it’s BS.

[ViLaLuz]

I’m intrigued by that machine. Does it have a name?

[WePledge]

I heard Jay-hawk-the-Carney-man spout this crap as I was negotiating traffic.I not only almost crashed,but my cursing nearly caused others to do the same.
I've got to get a less sensitive stupid meter. The one I have now is constantly going into overload and I don't foresee this admin. easing up on the stupidity output.

[ExTxMarine]

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

Every good Democrat knows that the fastest way to fill a swimming pool is to scoop out 5 gallon buckets of water from the deep end of the pool, carry the bucket to the other end and poor the water which has not leaked or splashed out of the bucket, back into the pool!

Although neither Pelosi nor Gibbs. Jr., were probably ever "pool boys," they have probably driven past a Holiday Inn Express! IDIOTS!

[webheart]

Disclaimer: The following is sarcasm, which should be obvious, but since we live in times of hypersensitivity, this disclaimer is necessary to reassure the reader that, although very plausible to any liberal, it is sarcasm.

Ah, yes, but Jefferson owned slaves, and not only that they were African Americans. Not only did he own slaves, he didn’t pay them minimum wage, he didn’t let them unionize, and probably didn’t abide by workplace health and safety regulations. Apparently, he sexually harassed one or two of them, causing them to become pregnant. Then, he didn’t pay child support. So, let’s see, racist, slave owner, sexual harasser and deadbeat dad. I think he has been thoroughly discredited now. Why would anyone listen to anything he ever said?

[Lmo56]

Unemployment doesn’t even cover the basic necessities [food, housing, utilities] - let alone leave cash in the pocket to buy luxuries.

All it does is help people keep the jobs they already have in the “necesssities” industries by allowing the unemployed to keep buying ...

Unemployment insurance is JUST a bridge until a person can find a job THAT WAS CREATED through other means ...

[cynwoody]

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.

Exactly. The libtards' cure for liberalism's messes is always more liberalism.

Actually, many of them (including Obama) are smart enough to see that pattern. But they want their fair and socially just liberal utopia so bad, they make a strategy of it. E.g., Obamacare. It's not what they wanted. It's what they could get through the 2008 congress. They wanted Single Payer. And Single Payer will be the cure they will propose after Obamacare destroys the nation's health care system. Incremental disasters are just stepping stones to liberal utopia.

[cynwoody]

I’m intrigued by that machine. Does it have a name?

It's the overbalanced wheel, invented by French Architect Villiard De Honnecourt in about 1235, and studied extensively by Leonardo Da Vinci in the late 1400's. You can buy yours here for $98.

Comment on the seller's web page:

PLEASE NOTE: We've had far too many people buy this item and later complain that it doesn't work. In case our educational system has failed you too, please let me explain - Perpetual motion is impossible.

Sounds like the Sheeple's experience with Obama, doesn't it?

October 1920

[ViLaLuz]

Very cool! Thank you very much.

[ViLaLuz]

“PLEASE NOTE: We’ve had far too many people buy this item and later complain that it doesn’t work. In case our educational system has failed you too, please let me explain - Perpetual motion is impossible.”

LOL—this reminds me of visitors to a Memphis museum to see an exhibit of animated dinosaurs. Many complained and wanted their money back because the dinosaurs weren’t real. I’m sure they went on to vote for 0bama.

[TheOldLady]

Click the Kitteh

I Can Haz Monthly Donors?

Sign up to donate monthly
And end the FReepathon for good!

[Fred Hayek]

This ranks with Jerry Moonbeam Brown’s “We don’t need more jobs, we need more welfare.”

[going hot]

Brown has insufficient working neurons to wrap them around that statement and realize the depth of stupidity to think such an idea has merit.

[loveliberty2]

Thanks for your sarcasm. It highlights the liberal-speak of several decades.

The so-called "progressives" thought they had sufficiently censored the nation's textbooks, libraries, and public discourse so that America's Founders, such as Jefferson, could be portrayed in the manner your sarcasm describes. If enough citizens believed their rewritten history and had no access to America's real history, they might have won.

Just as they thought they were about to win the battle of ideas (individual liberty versus tyranny by political elites), along came technology (Divine Providence??? - wouldn't that be the ultimate put-down for "progressive" censorship?) and made their censorship and rewritten history obsolete and inconsequential. Today, by the miracles of technology, every home with a computer has access to all the ideas they attempted to "erase" from the American memory. That access has had a large part in creating the Taxed Enough Already movement, which is upsetting the "progressive"/redistributionist apple cart.

The censors forgot that, as Weaver said, "Ideas have consequences," and, when one examines the consequences of the Founders' ideas of individual liberty and constitutionally-limited government power, one sees a great Republic which has attracted hundreds of millions of oppressed people who found freedom, opportunity, productivity, and plenty over a period of 200 years.

On the other hand, when one looks at the consequences of so-called "progressive" ideas, wherever they have been tried, one quickly can see that such ideas are counterfeit and lead to slavery and want among the citizenry.

As a result of technology, the typical liberal/"progressive" description of Jefferson and America's other Founders can be seen for what it is: deception and fraudulent history.

"We, the People," can read and measure the validity of the individuals who wrote the Declaration of Independence and framed the Constitution to protect unalienable rights of individuals by the 200-year consequences of their ideas, not by some leading liberal academician or historian's interpretation.

[ThomasThomas]

A lot of other cool cool toy there also.

[ViLaLuz]

I like that self supporting arch bridge.