If unemployment money = spent immediately, why not just cut out the middleman?
A good number of the top 1% you refer to are business owners who supply jobs to the economy. Why do you think these top earners are holding onto their money? Economic uncertainty. Create a climate more conducive to business growth and watch unemployment drop and the economy rebound.
Get rid of the Department of Energy and use the money to subsidize the "lost" funds from top earners and small business taxes and create a less hostile environment for growth.
Let's cut the fat and let hard working Americans fix the economy, not idiot career politicians.
Wow a perfect example of why Keynesian theory is flawed and why Okun was right about "The Leaky Bucket".
Smartest person in the room? Hardly, but if you can't recognize when someone is being facetious that isn't my problem.
My name is Ryan Walters. I live in the Cincinnati, OH area. I plan on winning the Republican Primary and then defeating Sherrod Brown in the 2012 election. ryanwaltersforsenate.com
I am also from Ohio and Brown is a disgrace to our great state. Thank God we have a new Governor now who can redistrict the state to ensure conservative victory over this clown in 2012.
Abolish the state, no more deficit spending and no more worry over tax revenues simultaneously. Voila!
Good points DMK.
"Transfers to persons (for example, unemployment insurance and nutrition assistance) would also have a significant impact on GDP. Because a large amount of such spending can occur quickly, transfers would have a significant impact on GDP by early 2010. Transfers also include refundable tax credits, which have an impact similar to that of a temporary tax cut.
A dollar's worth of a temporary tax cut would have a smaller effect on GDP than a dollar's worth of direct purchases or transfers, because a significant share of the tax cut would probably be saved. The nonbusiness tax cuts in H.R. 1 would reduce revenues much more in calendar year 2010 than in calendar year 2009 because much of the reduction in taxes would be realized by households when they filed their returns in 2010."
The CBO even used our tax dollars to give an easy to read chart to break this arguement down Barney style as we used to say in the Army.
And Moody's has sided with the CBO on this.
"Ms. SOPHIA KOROPECKYJ (Economist, Moody's Economy.com): If Congress does extend the benefits, then it will have a large increase on consumer spending.
NEARY: The Moody team tested the economic impact of a number of government programs, including making the Bush tax cuts permanent. They found that unemployment benefits have the biggest bang for the buck. For every dollar spent on unemployment, the economy gets back $1.61. The return on tax cuts is much smaller.
Ms. KOROPECKYJ: We only get a 32-cent impact for the loss to the treasury of the tax revenues.
NEARY: That's because people who benefit from tax cuts tend to be wealthier. So they might save the extra money. On the other hand, Koropeckyj says, those getting extended unemployment benefits have no choice but to spend.
Ms. KOROPECKYJ: They've likely depleted their savings, and this is really all the income that they have. And they have kids to feed, they have rent to pay, and there's a very, very high probability they're going to spend that entire amount that they get.
NEARY: And where do they spend it? In stores.
Ms. KOROPECKYJ: That initial infusion into the economy of the unemployment insurance benefits then reverberates through the economy, flows through the economy in a variety of ways, and so that, you know, $1 of benefits is magnified.
NEARY: In other words, the grocery store owner has the money to pay employees.
Those employees might need to buy a new dishwasher. The owner of the appliance store might want a new car and so on. "
Facts are stubborn things indeed.
But hey the Big Banks got $3.3 trillion dollars at .0078% interest to bail them out of the mess they made for us.And people really think the top 1% of this country actually care about tax cuts for the rest of us.
First of all, I don't give a rip what the CBO (which is about non partisan as I am) says. They don't live in the real world. OK, so the benefits my husband did get were spent immediately- on such wealth creating items as food and bills. WOW! Tax cuts to the wealthy lately are truthfully not spent, but can you blame them with the way as stated that consumer demand is down (because no one can afford anything) and they will not hire new people when they don't have confidence that they will not face heavy tax increases in a couple of months?! If I was a business owner, I wouldn't be hiring right now either!
And one more thing- how can government or anyone believe that it costs money to allow people to keep their own money?! What I find hilarious is that liberals believe that it will some how cost them when it doesn't belong to them. Taxes are not PAID by the government, they are SAVED by those who earn them. As I said a minute ago- those of us who are unemployed DO NOT WANT more unemployment "benefits"- we WANT JOBS.
I don't even have to watch the clip to know that those of us who have been unemployed for over 2 years (and I know many) do NOT want more "jobless benefits"! We Want JOBS!!!! We will NOT get jobs by what liberals keep doing (all they are doing is creating an ever larger poverty class to add on to the massive welfare system!) The only way is to let those who have it keep it, use it to invent, create and invest!
Good news about Sherrod Brown is he is up for re election in 2012. Just run this ad multiple times in Ohio and he should get destroyed!
If that is indeed true, we should all quit right now. Show me where McCain said that statement. Keep in mind that this is the crap our children learn from.
The CBO only measures data based on what is given to them. Without understanding what the figures they substituted for variables, there is no way to accurately debate. Aside from that, many variables are based on assumptions of how the market will react.
Most of the American people want a good job and to make it own they don't want government hand-out's. If Sherrod Brown wants to help the American people, stop taxing them for government incompetence and greed, and get out of the way of businesses, so the businesses can hire more people.
And enforce our immigration laws, so the American people can get their jobs back and/or have the opportunity to compete in the job market.
OK.. No unemployment will not grow our economy. What the unemployment extension will do is save 8,400 republicans and democrats that will be without monies in just a matter of days and another 1.36 million in a short time from now from loosing the home they live in the food they eat and the lives they now live under this regime. Millions of republicans and democrats good Americans through no fault of themselves lost the jobs they once had and not one thing has been done in two years to help create the climate for jobs to be filled by these unemployed people. Remember all the bail outs etc. not paid for well this money is the peoples money also and it is about time the people get some of the money back in their pockets during this presidents reign. When we republicans take over January 2011 we can make sure this is paid for from cutting some other program not by putting republicans and democrats on the streets or worse in 2010. Or you all here could start hiring the millions of both parties that do not have the blessing you all have called a job...
Devaluing the currency with unemployment benefits is counterproductive. There is no production based spending whatsoever, as other people have said here. I believe that the unemployment benefits will likely be extended, unless they are ready to let it start collapsing. A collapse is inevitable. There is more than one way to cause a collapse. One is currency devaluation, (quantitative easing) which debt spending causes, and which ends up causing inflation. With inflation, you can cause more foreclosures and business losses. Which causes more unemployment. Which causes more debt spending. Which causes more debt monetization, which causes more inflation, which causes decreased investing, which causes currency devaluation, and round and round we go.
As far as your comments about the newly elected politicians, I would just say that there is still a large majority of globalist corporate cronyism politicians in office. That is why they are still passing S510 and the like. Even after the first of the year, it won't change much. With Boner as the majority leader, we are screwed for even the slightest chance of reversal. Not to mention that the damage that has already been done cannot be reversed without Barry's signature. No, they won't de-fund everything. They will make a show of it, but that is about it. We are spending 1T per year overseas. We are fighting a drug war. We are still adding gvnmt to the rolls.
The only thing they are doing now is controlling the collapse. Plain and simple.
Compassion is the proper argument for an extension... suggesting bogus economic arguments like the one this idiot Senator is using is the wrong way to go. He deserves mocking because some people who don't know any better will hear this nonsense and may actually believe what he is saying.
The left usually uses compassion to make the right look heartless. Maybe this is an attempt to look intelligent. Didn't work.
IDIOTS! My husband was forced to use unemployment after losing his job in 2009 for 4 months and it was living in hell. $274/wk WOOHOO!!! We grew the economy barely paying our electric, gas & water bills AND eating beans & hot dogs WHILE hoping for charity in order to survive. We couldn't even pay the mortgage with it. It doesn't even cover REAL living expenses. That is the dumbest thing I've ever heard and we hear a lot of dumb things come out of some of these peoples' mouths.
Been there ! We lost our house while on unemployment , sold my car to move into an apartment we couldn't keep up the rent on . My husband never stopped looking for work , I took a job cleaning offices to get us by for awhile .We were not out shopping and putting money back into the economy , we were waiting in line for food at a church ! When my husband found a job it still took us months to catch up.
Every week I try to buy a few extra cans of food, some bread and drop it off at the church because that line just keeps growing .
Amy, we have been unemployed enough times over the last 30 years of marriage and we scrambled each time, cutting out as many things as possible to limit our expenses. We came pretty close to taking unemployment one time but the doors opened and we were employed once again.
It is a hard road to walk and I feel for those who are unemployed, even those that have become accustomed to the unemployment money...it is not a healthy way to live. Working and being productive is much more conducive to a healthier life.
Glad your husband is working again!
Lets get everybody on unemployement to fix the economy!!! I was wondering when someone in Washington was going to come up with the answer!!!!
As an Ohio resident, Sherrod Brown is my personal target for 2012. He's done nothing, absolutely zilch, nada, for this state. He and Voinovich have both been detrimental to Ohio and the entire nation as a whole.
Being from Ohio this man embarrasses me. I emailed him once and the reply was nothing but babbling double-speak. I'm voting against you in 2012 Sherry, you moron.