Nancy Pelosi claims that unemployment benefits and checks will create jobs. The unemployment benefits extension still hasn't passed, and perhaps one of the most influential people in Congress has given her opinion on the unemployment debate.
Nancy Pelosi thinks that unemployment checks will actually CREATE jobs. Sounds kinda like a paradox, doesn't it? After all, how can paying people NOT to work create JOBS? If you think about it, and listen to her logic - it does make sense.
People without jobs that don't have any income can't purchase goods and services. This means that demand drops, and then employers need to lay off more workers making the cycle worse.
The same unemployed person with a check will have the ability to purchase goods and services. Jobs are sustained or created as demand stays stable or increases. This helps us dig out of the hole we are in.
On the other hand, there's a fine line of how to pay for said benefits. IF benefits are paid for by measures that will cost businesses money, then some of the benefits of the checks will be negated. There are ways to pay for the unemployment benefits that will give businesses incentives to create jobs as well as give Americans the lifeline that they need.
The Senate is currently on vacation. They are holding up the unemployment extension. Once they reconvene, it's hoped that they will pass either HR 4213 or a standalone bill and give Americans the unemployment extension that they need.