Short term unemployment benefits provide people financial resources while the look for a new job. Extending unemployment benefits to 18 months or longer only encourages people to take their time looking for that new job. They do not create jobs. This is the liberal concept that spending money can be equated with job creation. If that theory worked, the Stimulus would have kept unemployment under 8% as promised. We all know how that worked out.
(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. Keep on reading…
I guess this is "new math".
I'd like to dub this new math the "Let them eat cake" math.
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