Skip to comments.Do Unemployment Benefits Stimulate the Economy?
Posted on 07/20/2010 5:47:29 AM PDT by MichCapCon
With the expected appointment of an interim Senator in West Virginia, Democrats in Washington are hoping to push through an extension on unemployment benefits. Under current law, benefits run out after 99 weeks (up from a previous record high of 65 weeks in 1975).
There's valid argument that a compassionate society with a dynamic economy should provide unemployment benefits, and a legitimate debate regarding how much and how long. But recently, some have gone beyond this and argued not only that these benefits are necessary, but that they actually stimulate the economy.
Most notably, White House Economist Lawrence Summers claims that not extending the unemployment benefit beyond almost two years would cost the U.S. economy $10 billion and 100,000 jobs.
Some center-left economists have calculated that Michigan will miss out on $205.6 million in "economic stimulus." And columnist Jackie Headapohl writes on Mlive.com that, "Unemployment insurance puts money in the pockets of the families most likely to spend the money which in turn expands the economy and creates jobs."
So is this accurate? Does government money in the form of unemployment benefits expand the economy?
(Excerpt) Read more at mackinac.org ...
Let’s see, theft of resources from the producers, transferred to the non-producers. What could possibly go wrong?
“Do Unemployment Benefits Stimulate the Economy?”
Oh, there you go asking softball questions again...
I don’t understand why media reports always focus on the 99-week eligibility period - this is entirely dependent upon WHEN you got laid-off. If you got laid-off recently, you’re done after 26 weeks now, period. The only people who got 99 weeks were those who got laid-off 99 or more weeks before this June.
I got laid-off last November, and when the extension expired in June, so did my unemployment.
Note: I’m not complaining about this or asking for another extension. Extended benefits IS a disincentive to actually finding work. Of course, that is EXACTLY what this government wants - a large population of unproductive voters who are dependent upon government checks.
nancy pelosi says so therefore, no.
Follow the money:
The US borrows money from China to pay unemployment benefits.
The government disperses the checks to he unemployed.
The unemployed go to WalMart, Target, etc., and spend the money.
WalMart and Target restock their inventory of the items purchased by the unemployed by ordering more goods from China.
So much of the money goes back to China, making a profit for the Chinese.
The original loan from China has not been paid down and interest on it is still accumulating.
Yet China has a large portion of their own money back and at a profit.
This is the way to prosperity?
I compare it like a person grabbing a container they think was a fire extinguisher to put out a fire on someone but..
Its really a can of pepper spray.
My favorite subject. If this is really true then how can the debt commission recommend cutting entitlements? Doesn't social security create jobs like this compensation does? It is all bogus. No, not all tax cuts pay for themselves either. More on this later.
Why do people parrot stupid leftist terminology like "stimulate" when it comes to the economy?
The economy isn't robust because its been "stimulated" or "tickled" by the government. Pay attention class.
Government creates poverty.
The free market creates wealth.
Government produces nothing and never has or never will create wealth - it can only act as either an agent to protect the free market or an agent to retard the free market and hurt the economy.
One way to stimulate the economy is to stop paying people to sit on their butts. Make them go out and get a job. They may not find the perfect job but let them work while they are looking. If they can not find a job in two years they are not looking.
the writer is in Michigan, where I believe they ARE the economy
Most notably, White House Economist Lawrence Summers claims >that not extending the unemployment benefit beyond almost two years would cost the U.S. economy $10 billion and 100,000 jobs.
LOL! Some people are so stupid that a public hanging is in order. - no sarcasm intended at all.
If this is the case, then why stop there?
Just extend unemployment benefits to everyone in America & our economy will be ZOOMING!
So listen up America! Quit work now! Save the economy!!
This is like saying that drilling a hole in the bottom of a boat will let out the water faster.
no ...its to buy votes.
“Why do people parrot stupid leftist terminology like “stimulate” when it comes to the economy?”
Thank you, thank you, thank you. All this stimulus/quick fix talk is rather adolescent. Economic growth and prosperity are a function of work, savings, investment, production. Stimulants produce temporary illusory results and long-term damage. It took decades to destroy our economy and it will take longer than a quarter to restore it.
"So is this accurate? Does government money in the form of unemployment benefits expand the economy? "
This is a rhetorical question, right?