- Sep 12, 2008
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- #21
Carney sounds like a guy who did the cliff's notes version of his econ text, if he ever had one and tossed it the day the class was over. He has a vauge memory that government spending is supposed to be stimulative and thinks that since unemployment is government spending, it must therefore be stimulative.
Stimulus is the spending outside the normal pattern. Unemployment insurance doesn't qualify.
And since it is set up as an insurance program, when unemployment is high for long periods it leads to increased premiums for employers, in effet a job killing tax on employment.
Stimulus is the spending outside the normal pattern. Unemployment insurance doesn't qualify.
And since it is set up as an insurance program, when unemployment is high for long periods it leads to increased premiums for employers, in effet a job killing tax on employment.