The truth?

Discussion in 'Economy' started by onecut39, Dec 10, 2010.

  1. onecut39
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    onecut39 VIP Member

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    We can't stand the truth and that truth is:

    Every dollar spent on unemployment compensation returns $1.50

    Every dollar spent on lowering taxes returns $0.40

    Look it up.
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    [ame]http://www.youtube.com/watch?v=UXoNE14U_zM[/ame]
     
  3. kwc57
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    kwc57 BOHICA Obama

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    No. You make the claim. You provide the documentation.
     
  4. pinqy
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    pinqy Gold Member

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    I'm just trying to figure out what money is spent to lower taxes.
     
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  5. william the wie
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    william the wie Gold Member

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    Naughty-naughty you are reality testing again.
     
  6. iamwhatiseem
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    iamwhatiseem Gold Member

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    It is no longer unemployment compensation. Call a spade a spade.
    It is welfare. Pure and simple...welfare.
    And I bet you every single member on this forum knows at least one person who is leaning on unemployment instead of working.
    I would wager at least 30% of all who receive it take advantage of it in one way or another.
     
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  7. code1211
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    code1211 Senior Member

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    That is without question the most stupid thing ever posted anywhere, anytime, by anyone on any topic.

    That's my opinion. I could be wrong.

    However, by that logic, if the Feds spent every dollar available on unemployment, we would be rolling in dough. I suppose that the guy who exhorts to "look it up" just needs to present a little proof.
     
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  8. editec
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    editec Mr. Forgot-it-All

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    Okay...where?

    Obviously one cannot deny that most of the money going to unemployment gets put right back into the economy, but I have always had difficulty understanding how one dollar spend becomes an amount greater than it was originally.
     
    Last edited: Dec 11, 2010
  9. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    I've heard this claim before about every dollar spent on unemployment returns $1.50. Nancy Pelosi loves to say shit like this. I think it's pure bullshit myself. If it's really true, then use that concept to rid us of our national debt. A buck is a buck. You can't clone it and you damn sure can't get a $1.50 out of spending a buck. Get fucking real and quit beating the liberal democrats drum.
     
  10. loosecannon
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    loosecannon Senior Member

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    I also have a hard time with this concept, the multiplier effect. But in at least one meaningful sense it is surely true. Because money is spent more than once and each time it is spent it performs more transactional work.

    It is the same relationship that export based industrial output has to the service sector: a slew of secondary economic activity is generated by the influx of money from exported goods multiplying the benefits.

    It's the same argument used to endorse cities financing sports arenas.

    It is also the basic premise of monetarism. If you force feed the economy with borrowed money the economy will grow enough to more than compensate for the costs of financing that growth.

    The problem with all of these examples is that they rely on a model that can't actually work within the frame work of our economy, at least not for everybody all the time. If you view the economy as a closed loop in the present this is impossible. If you assume eternal growth it can work more or less.

    Our entire world economy is based on these kind of arrangements. And the trick is that they work, until they don't.
     

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