Economic question about unemployment benefits

[Doctor_X]

Hi all, I just have a quick question.

A lot of people have been saying that unemployment benefits help stimulate the economy. Mark Zandi, Chief Economist of Moody's, has gone on record as saying that $1.00 spent on food stamps actually adds $1.73 to GDP. As far as I can tell from what I've read, the claim that unemployment benefits and food stamps adds to the GDP is uncontroversial.

My question is where does that extra wealth come from? How does government spending, targeted toward the unemployed, actually create this extra $0.73?

Thanks in advance.

 

[Revere]

It comes from the taxes of people who aren't even born yet.

 

[Doctor_X]

Thanks Revere. I must admit (and shold have stated in my OP), that my economic knowledge is rudimentary at best. Could I trouble you to please flesh out your response a little more? Preferably in terminology suitable for a kindergartener?

 

[Truthmatters]

No its based in sound economic principles.

People spend every dime of this type of stimulus (they have to to survive).

That in turn creates a demand which business fills by employing others to fill the need then these people also pay taxes.

Its simple and PROVEN by history and these studies have repeted the same results every time they are done.

Only idiot hacks who care more about party and failed ideas than they do country and countrymen believe that somehow if you give rich people a tax cut they will ruszh out to creat jobs for which there is no demand and lose their asses in the process.

Fucking stupid assed propaganda by the wealthy so they can keep the masses desperate and control the world.

 

[Truthmatters]

Thanks Revere. I must admit (and shold have stated in my OP), that my economic knowledge is rudimentary at best. Could I trouble you to please flesh out your response a little more? Preferably in terminology suitable for a kindergartener?

Hes a fucking hack who never responds to REAL facts and just pulls shit out of his ass as if its gospel.

 

[Revere]

You need a massive, government sponsored population of poor people.

Does that sound like prosperity?

 

[Revere]

You're "desperate" and "controlled" if you're told you're better collecting a stipend for being unemployed.

 

[Intense]

I believe too that the stores get rewarded for taking food stamps. Of course it's Federal money they are rewarded with, from the already allocated Food Stamp Budget. Sneaky... Sneaky... The money in their pocket trickles down when they spend it.

 

[Quantum Windbag]

Hi all, I just have a quick question.

A lot of people have been saying that unemployment benefits help stimulate the economy. Mark Zandi, Chief Economist of Moody's, has gone on record as saying that $1.00 spent on food stamps actually adds $1.73 to GDP. As far as I can tell from what I've read, the claim that unemployment benefits and food stamps adds to the GDP is uncontroversial.

My question is where does that extra wealth come from? How does government spending, targeted toward the unemployed, actually create this extra $0.73?

Thanks in advance.

It comes from people's imagination. If food stamps actually returned $1.73 for every dollar spent the government would be running it, Moody's would be investing in it and making rich people richer.

 

[PoliticalChic]

Thanks Revere. I must admit (and shold have stated in my OP), that my economic knowledge is rudimentary at best. Could I trouble you to please flesh out your response a little more? Preferably in terminology suitable for a kindergartener?

Welcome to the board.

1. First, the truth about economists:

When Albert Einstein died, he met three New Zealanders in the queue outside the Pearly Gates. To pass the time, he asked what were their IQs. The first replied 190. "Wonderful," exclaimed Einstein. "We can discuss the contribution made by Ernest Rutherford to atomic physics and my theory of general relativity". The second answered 150. "Good," said Einstein. "I look forward to discussing the role of New Zealand's nuclear-free legislation in the quest for world peace". The third New Zealander mumbled 50. Einstein paused, and then asked, "So what is your forecast for the budget deficit next year?" —The Economist, June 13th 1992, p. 71).


2. Rather than thinking about whether or not unemployment payments are economically stimulative, think about what it says about the human spirit, the basis of our nation's exceptionalism: reliance on other than oneself.

When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed. -- Ayn Rand (1905-1982) Author
Source: Atlas Shrugged, Francisco's "Money Speech"

3. Be aware, that about a third of folks find work shortly after their unemployment benefits run out, and that the most successful recession fighter, Waren G. Harding, had government do nothing and the recession was over in a year: folks had to take jobs.

 

[Intense]

No its based in sound economic principles.

People spend every dime of this type of stimulus (they have to to survive).

That in turn creates a demand which business fills by employing others to fill the need then these people also pay taxes.

Its simple and PROVEN by history and these studies have repeted the same results every time they are done.

Only idiot hacks who care more about party and failed ideas than they do country and countrymen believe that somehow if you give rich people a tax cut they will ruszh out to creat jobs for which there is no demand and lose their asses in the process.

Fucking stupid assed propaganda by the wealthy so they can keep the masses desperate and control the world.

So if you leave my dime in my pocket, rather than requisitioning it, won't it still help the economy when I spend it? Why is it better for the economy if you take it from me and you spend it???

 

[Quantum Windbag]

Thanks Revere. I must admit (and shold have stated in my OP), that my economic knowledge is rudimentary at best. Could I trouble you to please flesh out your response a little more? Preferably in terminology suitable for a kindergartener?

Hes a fucking hack who never responds to REAL facts and just pulls shit out of his ass as if its gospel.

I just looked up irony in the dictionary and found the same picture you use as an avatar, why is that?

 

[Truthmatters]

I think I will belive all teh economic studies which show that unemployment and food stamps are the best stim instead of the fucking nonsense the idiots on the right here are trying to hand eveyone with shit smeared fingers.

 

[Quantum Windbag]

No its based in sound economic principles.

People spend every dime of this type of stimulus (they have to to survive).

That in turn creates a demand which business fills by employing others to fill the need then these people also pay taxes.

Its simple and PROVEN by history and these studies have repeted the same results every time they are done.

Only idiot hacks who care more about party and failed ideas than they do country and countrymen believe that somehow if you give rich people a tax cut they will ruszh out to creat jobs for which there is no demand and lose their asses in the process.

Fucking stupid assed propaganda by the wealthy so they can keep the masses desperate and control the world.

So if you leave my dime in my pocket, rather than requisitioning it, won't it still help the economy when I spend it? Why is it better for the economy if you take it from me and you spend it???

Because the government gets to keep 8 cents.

 

[Truthmatters]

Food stamps offer best stimulus - study - Jan. 29, 2008


In findings echoed by other economists and studies, he said the study shows the fastest way to infuse money into the economy is through expanding the food-stamp program. For every dollar spent on that program $1.73 is generated throughout the economy, he said.

 

[Quantum Windbag]

I think I will belive all teh economic studies which show that unemployment and food stamps are the best stim instead of the fucking nonsense the idiots on the right here are trying to hand eveyone with shit smeared fingers.

Why isn't Moody's investing in food stamps?

 

[Revere]

Millions more poor people is prosperity?

 

[Revere]

I think I will belive all teh economic studies which show that unemployment and food stamps are the best stim instead of the fucking nonsense the idiots on the right here are trying to hand eveyone with shit smeared fingers.

Why isn't Moody's investing in food stamps?

Or, a UPS or Fedex for food stamps, in addition to USPS.

 

[Intense]

I think I will belive all teh economic studies which show that unemployment and food stamps are the best stim instead of the fucking nonsense the idiots on the right here are trying to hand eveyone with shit smeared fingers.

How many years should individuals qualify for unemployment Truth? What works for you? Who should pay for it?

 

[Revere]

Why should people who won't be born for 20 years pay for "prosperity" today?