This graph provided by Moody proves what is the most effective economic stimulator

[Billy000]

As you can see food stamps and unemployment insurance are the most effective economic stimulators. You see poor people who would otherwise be not spending money are spending money. Every dollar spent on these programs creates economic growth. Tax cuts on the other hand only slow the economy. Extending unemployment insurance was the heart of Obama's stimulus package. That is why it created 2.5 million jobs. The more facts we learn the more we realize just how much bullshit republicanism really is.

http://useconomy.about.com/od/usfed...its-Are-The-Best-Way-To-Boost-The-Economy.htm

 

[USNavyVet]

Great. Let's give everyone food stamps and get the economy booming.

 

[Billy000]

Why Extended Federal Unemployment Benefits Boost the Economy

 

[Missouri_Mike]

As you can see food stamps and unemployment insurance are the most effective economic stimulators. You see poor people who would otherwise be not spending money are spending money. Every dollar spent on these programs creates economic growth. Tax cuts on the other hand only slow the economy. Extending unemployment insurance was the heart of Obama's stimulus package. That is why it created 2.5 million jobs. The more facts we learn the more we realize just how much bullshit republicanism really is.

Why Extended Federal Unemployment Benefits Boost the Economy

I'm not sure who is dumber. You or the author of the article. I'm leaning toward you for believing this shit.

As a result, every dollar spent on unemployment benefits stimulates $1.64 in economic demand, according to a Moody's Economy.com study. How can $1 create $1.64? That's because of the ripple effect. For example, a dollar spent at the grocery store pays not only for the food, but also helps pay the clerk's salary, the truckers who haul the food, and even the farmer who grew it. They also buy groceries with their salaries, which pays more staff, and on it goes.

What a load of crap. A dollar spent in retail can't possibly inflate itself beyond that dollars end value. If it did then the clerks, truckers and the farmers all had to lose money to bring that dollar item to the consumer.

To provide a dollar item at the store all of those that contributed to the item must have their costs and profit when added up all fall within that dollar. If they can't do that the item must be sold for more money. That means the store has to stock the item, shelve it, pay a cashier and make profit on a portion of that dollar. The trucker has to pay for a driver, the rig, the insurance, the road taxes and profit within a portion of that same dollar. The farmer must also abide by the same guidelines all within a small portion of that dollar.

At no point in this chain can anyone involved exceed that dollar by a single penny let alone another 64 cents. If that happens one or all of them lose money and go out of business.

 

[Mr. H.]

It looks like the entire country is sitting on its ass while the real job creators go about their business...

 

[deltex1]

Whose money are they spending, Gertrude ?

 

[blackhawk]

Pay people not to work in order to stimulate the economy wow I mean wow.

 

[Rozman]

As you can see food stamps and unemployment insurance are the most effective economic stimulators. You see poor people who would otherwise be not spending money are spending money. Every dollar spent on these programs creates economic growth. Tax cuts on the other hand only slow the economy. Extending unemployment insurance was the heart of Obama's stimulus package. That is why it created 2.5 million jobs. The more facts we learn the more we realize just how much bullshit republicanism really is.

Why Extended Federal Unemployment Benefits Boost the Economy

Well since the economy is still in the toilet maybe we need to double or triple the food stamp benefit and extend unemployment benefits to 5000 weeks....
Our economy would be the envy of the world.

 

[Rozman]

Even more people on food stamps and more people not working...
Yup that's the way to go!
Why bother working.

 

[Moonglow]

It looks like the entire country is sitting on its ass while the real job creators go about their business...

I'm trying to sit on my neck, but that was only possible while in school..

 

[Moonglow]

I'm working on getting a tan...

 

[idb]

As you can see food stamps and unemployment insurance are the most effective economic stimulators. You see poor people who would otherwise be not spending money are spending money. Every dollar spent on these programs creates economic growth. Tax cuts on the other hand only slow the economy. Extending unemployment insurance was the heart of Obama's stimulus package. That is why it created 2.5 million jobs. The more facts we learn the more we realize just how much bullshit republicanism really is.

Why Extended Federal Unemployment Benefits Boost the Economy

I'm not sure who is dumber. You or the author of the article. I'm leaning toward you for believing this shit.

As a result, every dollar spent on unemployment benefits stimulates $1.64 in economic demand, according to a Moody's Economy.com study. How can $1 create $1.64? That's because of the ripple effect. For example, a dollar spent at the grocery store pays not only for the food, but also helps pay the clerk's salary, the truckers who haul the food, and even the farmer who grew it. They also buy groceries with their salaries, which pays more staff, and on it goes.

What a load of crap. A dollar spent in retail can't possibly inflate itself beyond that dollars end value. If it did then the clerks, truckers and the farmers all had to lose money to bring that dollar item to the consumer.

To provide a dollar item at the store all of those that contributed to the item must have their costs and profit when added up all fall within that dollar. If they can't do that the item must be sold for more money. That means the store has to stock the item, shelve it, pay a cashier and make profit on a portion of that dollar. The trucker has to pay for a driver, the rig, the insurance, the road taxes and profit within a portion of that same dollar. The farmer must also abide by the same guidelines all within a small portion of that dollar.

At no point in this chain can anyone involved exceed that dollar by a single penny let alone another 64 cents. If that happens one or all of them lose money and go out of business.

Here's a really easy explanation of the Multiplier Effect for you.
It's a little complicated but stick with it.
It's got some cool pictures that you can look at when your brain gets tired and you need to rest.

Multiplier Effect Explained | ROM Economics

How does it work?

An injection occurs in the economy, such as an increase in government spending.
The injection increases the aggregate demand in the economy for goods and services.
The increase in demand for goods and services causes firms to employ more workers and expand output.
As firms are employing more workers, more people have disposable incomes and subsequently the aggregate demand increases in the economy.
The increases in aggregate demand causes firms to employ more workers and the effect continues as before.

 

[Rozman]

Record number of people on food stamps now.
We have done the extention of UE benefits over and over.
And this is a good thing for the economy.

 

[Mr. H.]

There are around 4 million job openings in the U.S. from month to month.

What people lack is incentive.

 

[Indeependent]

There are around 4 million job openings in the U.S. from month to month.

What people lack is incentive.

Nope; they lack a business visa from India.

 

[william the wie]

There are around 4 million job openings in the U.S. from month to month.

What people lack is incentive.

Training actually, Welders are in short supply in the oil patch so they make $130,000 a year.

 

[Billy000]

There are around 4 million job openings in the U.S. from month to month.

What people lack is incentive.

Training actually, Welders are in short supply in the oil patch so they make $130,000 a year.

Yes true. Many people are underqualified for many jobs.

 

[Freewill]

The only way this makes sense is if jobs are added. The ripple effect is voo doo. The cost of bread already includes the overhead for everyone on down the line. The famer creates the wheat sells the wheat to the baker who in turns bakes bread selling it to the grocer who then sell it at a profit, all included in the 1 dollar.

Here is a snippet from the article: In fact, every $1 billion spent in unemployment benefits creates 19,000 jobs, according to study by the Congressional Budget Office. Which is approximately 53000 per job. I suppose that creating jobs using the Chinese credit card is a good idea but at one time a clean articulate black man said it was unpatriotic.

IF, after 7 years of liberal policy and power the economy actually looked better to most people they there would be a point to this thread. But with the only indicator that is better for the majority of Americans is the stock market it appears that the only people the party in power is concerned about are indeed the 1 percent that they rave about.

 

[Freewill]

There are around 4 million job openings in the U.S. from month to month.

What people lack is incentive.

Training actually, Welders are in short supply in the oil patch so they make $130,000 a year.

There is going to be a whole bunch of jobs opening shortly as the baby boomers retire and or die. The key is education and not liberal college education as an English major. Engineering, medical or learning a craft will lead to success. Sucking on welfare and unemployment and doing nothing is a losing situation. The reason the welder is getting 130,000 a year is because of the inflation of the money that is caused by QE and Obama using the Chinese credit card. That plus the welder is probably working lots of overtime.

That is why, it would seem to me, that making retirement more affordable and beneficial would stimulate the economy, in my opinion.

 

[The Rabbi]

This multiplier business has been debunked hard in another thread. There is no multiplier. Further, we have spent more money on UE and food stamps than ever before. And the economy is worse than ever before. So just looking at it, the chart is wrong.