Skip to comments.Report: Extending Jobless Benefits Creates Jobs (Congressional Budget Office)
Posted on 11/30/2012 3:26:39 PM PST by drewh
Extending the current level of long-term unemployment benefits for another year would add 300,000 jobs to the economy, according to a report from the Congressional Budget Office.
The analysis released Wednesday from the nonpartisan office estimates that keeping jobless benefits would cost the government $30 billion. But it would also lead to more spending by the unemployed, boosting demand for goods and services and creating new jobs.
Federal long-term unemployment benefits are set to expire on Dec. 29 for more than 2 million workers unless Congress approves an extension. Democrats have called for reauthorization of extended benefits, but Republicans generally oppose more jobless aid without additional spending cuts to offset the cost.
This report is more evidence that extending help to those who are seeking work is a better investment for our economy than extending tax breaks for those resting comfortably atop the economic ladder, said Rep. Lloyd Doggett, D-Texas, a member of the House Ways and Means Committee.
Regular jobless benefits generally last up to 26 weeks for eligible workers who lose their job and are seeking employment. Since the recession began in 2008, the federal government has offered up to 47 weeks of additional benefits.
The CBO report found that for every dollar of jobless benefits that the unemployed spend, there is a $1.10 boost to the economy.
Any deal on reauthorizing some or all extended unemployment benefits is likely to be part of ongoing negotiations over avoiding the fiscal cliff tax increases and spending cuts that could send the economy back into recession.
(Excerpt) Read more at boston.com ...
An immutable law of economics:
You get more of what you pay for.
If you pay people to be unemployed, you get more unemployed people.
Libs always turn economics on it’s head in order to justify more government spending and control over your life.
Right, and paying off one credit card with another one will eventually get you out of debt.
this is such b.s. if this were true, over the last four years with unemployment rising and benefits rising, and continuning......the job market is still tanking....where do they get this idiotic thinking from???
Brought to you by the non-partisan CBO...
Would doubling benefits create 600 thousand jobs?
Would doubling benefits create 600 thousand jobs?
“boosting demand for goods and services and creating new jobs.”
So if everyone applies for and gets unemployment, that will create more jobs. We’ll have full employment and the economy will roar.
After reading this garbage, I’m convinced more than ever that we need to either float these leftists to North Korea or bury them in mounds as ant food.
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We live in very depressing times. Anyone with common sense should know this is not possible. Sadly, there is a serious lack of common sense.
I have always been for unemployment benefits. Even extended during long downtimes.
However, to say they ‘create’ or even ‘save’ jobs is nuts.
Each putative job is estimated to cost taxpayers $100,000. Seems as if there’s a lot of wild ass guessing going on.
(In best Ernest Hollings’ voice:) There’s too much Waggin’ goin’ on out dere.
We can’t pay for unemployment based on the unemployment tax we already have. If unemployment is such a problem, let’s raise the unemployment tax. I’m tired of all this hidden taxing and spending. You want to pay unemployment for forever? Then take it out of the workers paychecks with the unemployment tax. You’ll find out real fast how liberal those Democrats are when their paychecks take a cut.
this is bull crap, they know its bull crap and they know that we know that they know its bull crap. They act really stupid in hopes they don’t get their heads handed to them when the SHTF, and it will and they will.
There are producers and there are users. Politicians are users, and have never understand producers. With their logic, we can destroy producers to make more users to infinity.
Or in other words, the way to riches is to burn our cash in a trash barrel, because the trash company will hire a new guy to haul ashes.
Bearing in mind, of course, that Congress hasn't produced a budget in three years?!!!!
Alfred Keynes..the patron saint of stupid economists and Marxists.
Hurricane Sandy was great for construction jobs. And if it doesn’t rain in the midwest, all commercial traffic on the Mississippi will be halted. That would be great for the trucking industry. /s
Um, I had debt on two credit cards, paid off one with the other and now that card has a $0 balance; so it must be working. Now I just need to get another card to pay that remaining one off.
/s tag for the sarcasm impaired.
I'm not sure they're acting.
It's hard to believe but the belief in the theory that government spending helps the economy runs deep in most of the country. I'd agree that it shows a lack of intelligence but not necessarily a lack of sincerity.
300,000 jobs? That is all? Not worth it. Obamugabe and his court jester Biden said we’d be creating 500,000 jobs A MONTH by now.
300,000 “jobs” in a year for extending unemployment benefits isn’t a deal.
Shove it, Obmaugabe...unless of course you’re willing to CUT entitlements (not defense) at the same time.
Let’s start with food stamps. And Obamaphones.
If we could just get 100,000,000 people on unemployment (not so far fetched with the Food Stamp President in office), the economy would really take off. CBO would have to work overtime to calculate the billions of jobs that would be created and trillions of dollars generated in goods and services to sustain them. Maybe we should fire those geniuses at CBO so that they have to get a real job. With their expert level of economics, they should easily transition to high level positions in private industry.
And Obama says the Republican math doesn’t add up for spending cuts...