Economic question about unemployment benefits

[loosecannon]

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

In a way you are right.

The concept is of a secondary market that is stimulated by the introduction of new money into the local economy.

As far as I can tell the flaw in the theory is that it doesn't account for the cost of the first dollar spent so the actual benefit is only .73 additional cents for each dollar spent.

 

[Flopper]

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.

GDP includes the value of a country's overall output of goods and services. For example, the one dollar in food stamps is used to purchase one dollar's worth of groceries which adds one dollar to the GDP. The grocer uses part of that one dollar to pay salaries to employees and for other services. The part of that one dollar that the employees received is used to buy goods and services which again adds to the GDP. The process continues adding smaller and smaller amounts. The parts of that dollar that is saved does not add to the GDP. I don't know how he calculated the 73 cents. I suppose there is some formula that economies use to calculate it.

Economist contend that one dollar given to the poor will create more consumer demand than one dollar given to the wealthy since the wealthy are more likely to save the dollar than spend it.

 

[Revere]

Is growth in GDP better now than it was when unemployment was half what it is today?

 

[Oddball]

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.

GDP includes the value of a country's overall output of goods and services. For example, the one dollar in food stamps is used to purchase one dollar's worth of groceries which adds one dollar to the GDP. The grocer uses part of that one dollar to pay salaries to employees and for other services. The part of that one dollar that the employees received is used to buy goods and services which again adds to the GDP. The process continues adding smaller and smaller amounts. The parts of that dollar that is saved does not add to the GDP. I don't know how he calculated the 73 cents. I suppose there is some formula that economies use to calculate it.

Economist contend that one dollar given to the poor will create more consumer demand than one dollar given to the wealthy since the wealthy are more likely to save the dollar than spend it.

Where do you think the dollar came from to give the welfare moocher, the friggin' Tooth Fairy?

 

[william the wie]

Starvation, malnuitrition and other aspects of poverty are a health and wealth hazard that impose a heavy implicit tax on everyone. For example North America has the largest reservoir of bubonic plague carrying rodents in the world but the rare human cases are still national news. Good sanitation and public health pretty much stops plague cold. So pest and microbe control pays huge dividends.

To go with one example plague purportedly entered the US from a boat landing in San Francisco in the late 1800s and it is spreading east. New Mexico is the last hotspot I recall with less than 10 total cases and most victims survived. What was not reported but undoubtedly happened is that public health and sanitation went mildly ape cleaning up rat infestations and rat attractants. No news of plague cases in years means that they really tightened up. The big bugaboo is what will happen when plague reaches the St. Louis-Chicago metropolis. My guess is fewer than 100 infections and less than 10 dead but a sanitation bill that will be eyepopping. The dead and dying are microbe breeding grounds, likewise the hungry. Keeping the poor in reasonably good health pays dividends.

 

[Truthmatters]

You guys seem to think that you are more competant than harvard economists to determine economic reality.The jobs created by the need when these funds are spent ar not pretend jobs, they are real and the people doing them pay taxes and ALSO spend their incomes stimulating even more.

Jesus people quit being so fucking mind numbingly stupid and partisan.

YOUR COUNTRY IS FAR MORE IMPORTANT THAN YOUR FUCKING PARTY

 

[Revere]

My country is more important than the government spending the earnings of people who are not even born yet in the name of "prosperity."

 

[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.

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

How about just as long as it benifits the overall economy????


Jesus people you are refusing the best minds in the country input on this subject and using partisan hackery instead.

When will you fucking people grow the fuck up and start caring about this country more than your fucking party?????

 

[Revere]

An endless gulag of dependency "benefits the overall economy?"

 

[Truthmatters]

My country is more important than the government spending the earnings of people who are not even born yet in the name of "prosperity."

OH really, then why the fuck do you want tax cuts for the wealthy when it is proven that shit has very little economic return?


You are a cement block head who refuses facts and tries to rewrite history to fiut your poarty view.

IF you cared one fucking bit for this country you would DROP the partisan hackery line and start accepting the advice of the best minds in our country instead.

 

[Revere]

Here it is again. Looks like the middle class is being knifed for the sake of the dependency class.

These are all government programs.

 

[Truthmatters]

An endless gulag of dependency "benefits the overall economy?"

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Your shit makes about as much sense.

You are a partisan hack who has NOTHING to say and refuses facts and history and every turn.

Hell you have NO PROBLEM pissisng all over the head of the Americans who lived through the great depression for hackery sake.

You try to say the VERY people whos sweat and blood drove us out of the mess where fucking idiots who had no idea what was happening arround them.


Take your phoney assed arguements and sell them to someone else.


The people who TURNED this country arround and fought WWII and won LOVED FDR for helping them save this country from the biggest mess ever seen.

You pay them back by trying to rewrite history to call them all idiots who didnt even know their own lifes experience enough to KNOW what saved them.


You are a hack and a POS for pissing on that generations greatness.

 

[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?

How about just as long as it benifits the overall economy????


Jesus people you are refusing the best minds in the country input on this subject and using partisan hackery instead.

When will you fucking people grow the fuck up and start caring about this country more than your fucking party?????

So Grasshopper, you presume to think that everyone must reason like you, and that your way is the only correct way. You presume too much grasshopper. I care about truth and Justice TM, I do not live my life looking through somebody else's eye's, just my own. Rather than convict people who think differently than myself, I try to convince through debate and argument, I both listen, see, and speak my piece rationally, at least that is the target, why don't you try doing a 180 and consider that.

 

[rdean]

Supply and demand are the only things that stimulate the economy. There is always demand for food and clothes. By supplying benefits to the unemployed, they are able to purchase those goods instead of being given a little charity at a "food bank".

We have been paying unemployment insurance for our entire working lives. When we are benefiting from that "insurance" program it helps get money moving in the economy.

If Republicans don't like Americans getting "insurance" they paid into for years, then why do they elect leaders who make it easy to move jobs to "China"? Seems kind of self defeating.

You know, if Republicans hadn't invaded Iraq and given out a 2.4 trillion dollar tax break and a 2 to 7 trillion dollar drugs for votes bill, and helped move millions of jobs to China, we wouldn't even be having this discussion.

 

[Revere]

The insurance has run out.

Bush created jobs faster than they moved to China.

 

[Truthmatters]

Wyatt Emmerich is a fucking journalist and a hack

 

[rdean]

Here it is again. Looks like the middle class is being knifed for the sake of the dependency class.

These are all government programs.

Does that mean you are giving up your Social Security and disability?

 

[Revere]

Which of those programs do single parent earners of $14,500 and three dependents not qualify for?

 

[rdean]

The insurance has run out.

Bush created jobs faster than they moved to China.

liar

 

[Revere]

Here it is again. Looks like the middle class is being knifed for the sake of the dependency class.

These are all government programs.

Does that mean you are giving up your Social Security and disability?

Who cares? They are both insolvent. The government is $14T in debt.