Like I said; you don't really believe in Capitalism or making more money, with some money.
Another dumb post. If you don't have anything to say, just shut up. You are never going to get a meaningful response from anyone, when you say such absolutely moronic statements. Grow up a little. Be more mature. You'll get more mature responses when you do.
Now, new evidence from a study commissioned by the Labor Department during the Bush Administration reaffirms the value of UI as an automatic economic stabilizer during the latest recession. This study was conducted by the research firm IMPAQ International in conjunction with the Urban Institute and using the macroeconomic model from Moody’s Economy.com.
The study found that UI benefits:
- reduced the fall in GDP by 18.3%. This resulted in nominal GDP being $175 billion higher in 2009 than it would have been without unemployment insurance benefits. In total, unemployment insurance kept GDP $315 billion higher from the start of the recession through the second quarter of 2010;
- kept an average of 1.6 million Americans on the job in each quarter: at the low point of the recession, 1.8 million job losses were averted by UI benefits, lowering the unemployment rate by approximately 1.2 percentage points;
- made an even more positive impact than in previous recessions, thanks to the aggressive, bipartisan effort to expand unemployment insurance benefits and increase eligibility during both the Bush and Obama Administrations. “There is reason to believe,” said the study, “that for this particular recession, the UI program provided stronger stabilization of real output than in many past recessions because extended benefits responded strongly.”
- have a multiplier effect of 2.0: for every dollar spent on unemployment insurance, this report finds an increase in economic activity of two dollars.
Source:
ETA News Release US Labor Department study underscores positive impact of unemployment insurance 11 16 2010
This is both obvious, stupid, and deceptive.
First, I don't care that "bush said it". I don't give a crap what Bush said. He's wrong.
Second, GDP, the very calculation of GDP, includes government spending.
If the government spent $1 Trillion dollars to hire Japanese sumo wrestlers to poop out of helicopters on top of the White House.... The government could honestly, and truthfully conclude that Sumo poop on the White House increased GDP by $1 Trillion dollars.
Go look it up. GDP includes government spending. If they spent $300 Billion on Unemployment Comp, it would increase GDP by $300 Billion. If they spent $500 Billion, $700 Billion, or $55 Trillion on Unemployment Comp, it would increase GDP by whatever amount they spent.
So that's irrelevant. Because it's not "real" GDP. Real improvements to the economy, do not require government spending to create.
Beyond that, it is absolutely impossible for unemployment insurance to prevent someone from losing their job. It is also false to claim that if those people didn't have unemployment insurance, that they would not have gotten a job. In fact, research for non-government (self-interested) sources, suggest that people act differently (as a normal non-left-wing person would expect), when they have money from the government, verses when they don't. Obviously your incentive to find a job, is higher when you have no more unemployment comp coming.
That isn't to say that everyone sits around until it runs out, only that the incentive is higher when it's running out, than when you have 99 weeks left.
Now, NONE of what I just said, is to suggest there is zero benefit. Of course there is. There is a benefit to all government spending. Increasing military spending would also save jobs, and increase the GDP.
The problem is, we are borrowing money to do it.
If I borrow money to live a better life style, I can safely say that credit cards increased my life style, my happiness, the quality of my health care, and all kinds of things I spent the money on. Until.... I go bankrupt, and I lose everything, including the stuff I had before I went into the debt to boost my life style.
Similarly, Greece's government spending clearly allowed the people of Greece to live a better life style, and increase GDP, and increase social programs and mass transit, and all kinds of stuff.
Yeah.... how's that working for them now? Now they have a worse standard of living than nearly anywhere in Europe.
So short term gain, and long term pain.
Lastly, all of those calculations exclude one key attribute. Specifically what would have been done with the money, if it had not been loaned to the government to fund UI? If the government had not borrowed the money, the people with that money would have been forced to invest it, or spend it somewhere else in the economy. If they used it to buy goods or invest, that would have created jobs in the private sector, then employment would have recovered faster.
Instead it was lent to the government, to pay people to stay at home.
These are not net positives. The claim that there was a "multiplier effect", is crap. Bush's gov-supporters are wrong. I don't care that it's Bush's team, or Obama's Team, or Clinton's team, or whose team it is. The claims about the multiplier effect, are false.