Flaylo
Handsome Devil
The next big hit to the economy? | The Lookout - Yahoo! News
Repugs? I was right, the housing bubble, not government overspending has hurt the economy more than anything. For those rightwingers who say our social welfare system is too generous they need to come to Europe our systems look draconian compared to theirs. More importantly, taking away social welfare help will take money out of the economy and all those markets and businesses that depended on such money will go to crap and shat will just get worst. Repug solutions, lol, the recipe to disaster.
Government benefits that go to poorer Americans, like unemployment insurance, tend to boost consumer spending more than other kinds of stimulus, because people living paycheck to paycheck have little choice but to spend the money, rather than saving it. So the disappearance of jobless benefits will take money out of circulation when economic growth is seeking to gain some traction.Indeed, economists say that the withdrawal of jobless benefits will create a major ripple effect on growth as a whole. Consumer spending accounts for around 60-70 percent of U.S. economic activity, economists say. But with so many Americans having lost wealth in the housing bust, spending has been tepid for a while, preventing the recovery from gaining any momentum. Now, the end of the extended benefits will likely soon put a further crimp in spending.
And that, of course, leaves out the role the benefits play on an individual level, providing a crucial lifeline to millions of struggling Americans.
On the bright side, some studies have shown that when people face the loss of their benefits, they're more likely to look for a job, and to look more aggressively. So the loss of benefits could motivate some job-seekers. But most economists appear to agree that jobless benefits have a larger stimulative impact--meaning, in other words, that the benefits likely lead to more jobs, rather than fewer.
Repugs? I was right, the housing bubble, not government overspending has hurt the economy more than anything. For those rightwingers who say our social welfare system is too generous they need to come to Europe our systems look draconian compared to theirs. More importantly, taking away social welfare help will take money out of the economy and all those markets and businesses that depended on such money will go to crap and shat will just get worst. Repug solutions, lol, the recipe to disaster.