PDA

View Full Version : Economics Extending Unemployment benefits is an Obama Job creator


HonestChieffan
08-10-2011, 03:18 PM
With is logic, we should increase the number of unemployed so we get more people employed. Or something.

(RCP) — ”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 Wednesday’s WH briefing.

Carney sarcastically 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 estimates that unemployment benefits could create up to one million jobs. However, then he goes back to the latest White House mantra of how a possible natural disaster could hurt US economy as well as the global economy.

ROYC75
08-10-2011, 03:24 PM
Let's spend billions to create a million jobs? If it even created a million.

There logic is flawed. Logic, what logic? Maybe a theory!

petegz28
08-10-2011, 03:58 PM
Seems to me that unemployment for 99 weeks is long enough. I know some people might have to take jobs they don't want or pay what they need. I had to do it for a bit, so they can do it.

CrazyPhuD
08-10-2011, 05:23 PM
Let's spend billions to create a million jobs? If it even created a million.

There logic is flawed. Logic, what logic? Maybe a theory!

actually there is both logic and illogic to it. It has been proven time and time again that one of the most efficient ways to stimulate the economy is through unemployment. Why? Generally people on unemployment are in fairly poor economic shape which means almost every dollar you give them, then spend. So when it comes to stimulus programs, unemployment is actually one of the most efficient ones, it is generally far less wasteful than other approaches.

However, there is a real concern that long term unemployment is a major issue because if you've been out of work too long then your skills erode and it becomes even more difficult to get a job. There is no doubt that not having unemployment beyond a point would motivate people very strongly to find a job, any job...

However what happens if there are no jobs to find? In that case where are those that have no unemployment going to turn for income? Crime? Very possibly. So what should be the answer, short term unemployment is likely fine, but for the long term we need to tie unemployment to training and after a while we should create some variant of the old Civilian Conservation Corps. If we're going to pay you and you can't get any other job then we might as well get some work out of you.

trndobrd
08-10-2011, 10:04 PM
actually there is both logic and illogic to it. It has been proven time and time again that one of the most efficient ways to stimulate the economy is through unemployment. Why? Generally people on unemployment are in fairly poor economic shape which means almost every dollar you give them, then spend. So when it comes to stimulus programs, unemployment is actually one of the most efficient ones, it is generally far less wasteful than other approaches.




You are correct that nearly all the money from unemployent payments is spent, but the economic impacts are actually quite limited. The unemployed are not buying new washing machines, cars, lawnmowers, dinners at restaurants, taking vacations, and remodeling the house. Since the unemployed are in dire financial situations, the ways they spend the money are, more often than not, for things such as rent or mortgage payments, gasoline, utilities, and food. While that does put some money through the economy, it is not the sure fire recipe for jobs that some predict.