Thursday, December 15, 2011

Pelosi still claiming extending unemployment benefits will create 600,000 new jobs

Democrats like to equate spending money with creating jobs. The Stimulus proved this theory is wrong. The unemployed don't hire people. businesses hire people. It is true the unemployed are very likely to spend the money given to them, but the things they spend it on aren't likely to create jobs. If someone pays their rent or house payment, it is unlikely to cause a bank to hire a new employee. In order to create many jobs, the unemployed would have to buy new houses, cars and consumer goods. That isn't likely on unemployment. Extending unemployment benefits long-term allows people to not aggressively search for a job or consider options like retraining or relocation to areas that have jobs going begging.
(CNS News) — House Minority Leader Nancy Pelosi (D-Calif.) said that extending unemployment benefits would add “600,000 jobs to our economy.”
She also said that the money from unemployment benefits creates a “safety net” for the U.S. economy because it “injects demand into the economy — creating jobs.”
“The payroll tax cut that the president proposed would put $1,500 in the pockets of 160 million Americans,” she said. “The unemployment insurance extension is not only good for individuals. It has a macroeconomic impact. As macroeconomic advisers have stated, it would make a difference of 600,000 jobs to our economy.”
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