Monday, July 5, 2010

Pelosi: Unemployment Benefits and Checks Create Jobs?

House Speaker 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.

23 comments:

  1. It is inconceivable to me how the Senate could have gone on a 7 day long recess, especially that it was the July 4th recess, without taking care of the business of extending unemployment benefits. How they could leave the American citizens hurting like this is disgraceful. These people put you there and you just take off for that long a of time. On the first of month, especially after a month of discussing this bill, when many must pay bills, to leave this people without any assistance is something many of us, who are employed, or retired, cannot understand. These representatives must be voted out when their term is up, both Rep. and Dems. as there should have been a compromise before they left.

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  2. Dems & Republicans...they are all LIARS!

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  3. Her logic does not make any sense. People who draw unemployment rarely spend their checks on things that stimulate the economy. Rather, they pay overdue bills. I suppose one could argue that buying groceries is injecting money into business, but the effect is minimal.

    Plus, if you follow her logic, we have to keep people out of work to put them back to work. It's a joke and I'd laugh if this person were not the leader of one of our houses of legislature.

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  4. I made a video on our unemployment situation.Please see the video at
    http://www.youtube.com/watch?v=O7Xok81nr9Q
    Please comment on my video.

    Pass Unemployment Bill H.R. 4213

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  5. It's basic keysnesian theory guys... she's not pioneering this brilliant theory or anything. At the same time, she's not necessarily wrong. There is nothing in the theory that says keeping people unemployed is necessary to create jobs. It's a simple idea, based on the fact that busiesses gear their firms for what they think will happen tomorrow, not what is going on today. Private sector demand falls when private sector income falls(lost jobs). This causes businesses to have a negative outlook on demand, and attempt to bring production in line with expected future demand by adjusting their production inputs: captial (Building, Machinery, delivery trucks, computers, ect) and labor. It is easier to adjust labor input than capital, which means more people will be laid off... further purpetuating the cycle. In order to stem this, the government, which can print and therefore spend at will, should *Important* TEMPORARILY subsidize private sector demand until negative deviation from potential GDP is erased(jobs return to equilibrium). Unemployment insurance is a form of temporarily subsidizing demand. So what if they use it to pay bills? Does the money disintegrate once it is paid out to debtors? Of course not, they then spend it. An obvious danger is that public spending does not return to previous levels, but that does not take away from the effect of unemployment insurance.

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  6. Problem is we are spending too much and kicking the proverbial can further down the road (which will hurt out kids and grandkids). This level of spending cannot be sustained without new taxes (which further suppress growth) and the people, including our congressional delegation know it. Fear of the uncertain future is what is keeping the private sector from hiring right now. No successful business can hire without knowing what the future holds.

    This is just going to prolong the pain. Rip off the band-aid and let the country start to heal.

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  7. Dude can she get any uglier?? Damn I've seen nasty baboon ass that looks better then her..

    but seriously all kidding aside... She is Ugly!!!

    OK enough with the jokes... I find her incredibly attractive.... NOT!! attractive to a hungry lion who has not eaten weeks and even he might think twice before eating this bitch
    :) just my 2 cents

    oh and one other thing... her theory is completely and utterly worthless and untrue... i spend my unemployment on pre-existing bills which do next to nothing to help stimulate new jobs in the economy... she is a fake, a liar and a manipulator at best and even suxs at that

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  8. This is a serious issue. We, the unemployed Americans are extremely worried about it. This is a political game for the statesmen and for us it is a life and death issue. But, what can we do excepting signing petitions or creating polls. However, petitions and polls are useful ways of expressing our views. Recently, I have signed a petition on aafter.com. If you are also interested then go to the site and type petition: in the search box and press enter to convey your opinion.

    This is my request to the Government, please do something for us.

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  9. Well, hey...you do need gas money to get to job interviews.If the repo man comes for your car, you may not be able to walk to a job you do get. If the water is turned off, and you can't even shower, that don't look good. People who are just getting by now WITH benefits may not have family to turn to.
    I can see how extending benefits is a wise thing to do, until more jobs open up. Not extending them is going to mean homeless hungry people. You can't make someone give you a job. Maybe Castro will take some of in...if we learn Spanish,si? I can see Americans going in boats to Havana..saying we will work for food and shelter and medical care.

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  10. I THINK I'M GOING TO CHECK OUT AUSSIE HEARD THERE ARE JOBS AND LOW TAXES. IF I CAN DO ENOUGH YARD WORK, AND GET ENOUGH TO GET A TICKET. COLLEGE, WORKED HARD, AND I END UP LIKE THIS. MAYBE I COULD GET MY JOB BACK IF I MOVED OVERSEAS. DON'T THINK I'd LIKE INDIA.

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  11. Forgotten AmericanJuly 5, 2010 at 5:38 PM

    That actually don't sound half bad.. At least in a couple other countries the people have joined together and revolted against the tyrany in their government.. We are too busy fighting amongst each other, and government and big buisness is laughing at us all the way to the bank....

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  12. I love my country, but I do not trust my government. FDR said in politics nothing is accidental, everything is planned.
    Maybe they want a depression, riots in the strets, people selling drugs to survive, more crime.
    I wonder where the churches are...they should ask everyone in their congregations if they are unemployed. If any members are able to provide jobs or offer assistance. Instead of building more $$$ dollar buildings,and SOME pastors, etc. living so high on the hog...help people. Especially the right wing talks about being a Christian nation ..aren't we supposed to help the needy, the hungry, the sick ? I guess that's OK if it's in a foreign country.
    No, I am not talking about people who do not want to work.

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  13. Just when it seemed that political momentum in this country had started to shift toward the right, a Republican Party void of leadership and direction is once again showing how out of touch it is with Americans suffering through the Great Recession. Republicans’ resistance to extend unemployment benefits is deplorable and hurts their own cause in the long run.

    http://philiptortora.blogspot.com/2010/07/republicans-blockade-of-extending.html

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  14. The unemployment check hold those jobs that are not cut yet. So the basic needs are still there and they are being paid by the unemployment check. Once that checks stop flowing, those people who commented here that thinks unemployed are lazy will find themselves out of a job.

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  15. Dems have had the majority in house and senate since midterms 2006. Govt spending had been increasing and the only jobs being created are in the govt, ie. IRS, census.

    Someone earlier said "This is my request to the Government, please do something for us."

    They are,they are keeping you dependent on them.Try doing something for yourself.This is not as coldhearted as it sounds. We as a nation need to start looking to ourselves as individuals to support our families. We have too many looking for government to take care of us,and too few contributing the revenue to do it.

    Families need to have less debt,spending on credit. The government needs to do the same.

    Maybe unemployment benefits that have been extended to 2 yrs already is someplace to start.

    Or we can vote the current officials out and see if they can live on unemployment.

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  16. At least let people know in advance...if /when benefits will stop. Making people wonder if/when is a bad way to do it. I'm not unemployed, but if I were going to stop receiving benefits, I'd need to make plans. If I can't yet find a job, I would let my landlord know so they could make arrangements, I'd have to stay with family and they would need to know when as far in advance as possible. I know people out of work who are at the end of their rope, and can't hang on. Easy to say up to people to support their families...quit looking to the government. This is an emergency people never dreamed of happening to them. People have been put out of a business their fathers and grandfathers took a lifetime to build.
    I don't want socialism..I don't want us to be a third world country either. The government got us in this ..they should do everything they can to get us out. If benefits are not extended, they are going to have to build more government houseing. See what that will cost.

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  17. Please see my video on our Unemployment Bill at

    http://www.youtube.com/watch?v=O7Xok81nr9Q

    If you have suggestion for a different idea or for a campaign video, let me know. I am unemployed and ready to fight this horrible situation.

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  18. Well Im like so many others on this post. I had 18 years in with one company since graduating high school. I started out as a supervisor working my way up the latter to management then onto district manager. I had never drawed a unemployment check before being layed off, I worked 6 days aweek. I have applied for so many jobs that I have actually lost count. We sold our home, our cars, and even drawed my 401k out to stay afloat. Now mine and my partners unemployment has come to a end and still no jobs. Our savings is almost gone at this point which is sad we had worked so hard to make sure we had savings for when we was old and retired.
    Even worse my daughter is in college and the cost of her education has put a burden on us which upsets me to no ends. I have always been able to provide for my daughter and now I dont even know if she will beable to finish.
    We have both even went to temp services trying to get a job doing anything but they can not even place us. Thats when you know its bad when you can not even get a job at a temp service.
    Now the Senate is on vacation.. Must be nice I remember having the money to take vacations but now we just hope to beable to pay our rent next month. Im not sure what to do anymore but I guess its time for the people to speak up and let the Senators know that we are not happy.

    Instead of posting on this site please visit
    http://www.senate.gov/ and let the Senators know that we are tired of waiting if they cannot do there job we will replace them.
    I have went to the website and contacted both of the senators in Ohio about extending unemployment benefits and even more letting them know that if they vote NO they will not recieve my vote in the next election and that I will use all my free time since being unemployed to make sure the person running against them gets voted in. EVERYONE OF YOU NEED TO BE DOING THE SAME THING......Please

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  19. For thoses saying: Rip off the band aid!

    Unemployment isn't a bandaid. It's money to pay for the basics, food, clothing, housing. Ripping off that bandaid only means 12 million people will be homeless, starving and on the streets (I say 12 million because in your scenario every open job is filled now).

    I think I read it best from a desperate parent:

    "Your insistance on saving your child and granchild's future is starving my child now!"

    I've paid down deficits from Regan, Bush I and am paying on Bush II and Obama. There are places that we should be looking to save money. Places such as the tax loophole that allows for the offshoring of american jobs and costs us 14 billion a year, or the other loophole that allows holding companies to receive American business money into offshore accounts so that they aren't taxed at the correct rates (it's 700 Billion right now estimated in lost revenue). These aren't "new taxes" on the rich or corporations as they are being touted. These were existing taxes that were intended to do something completely different that the major corporations have taken obscene advantage of.

    1. The first tax loophole was intended for American businesses that receive foreign goods for production would not be taxed on those goods entering the country. (IE: I make teak tables, my teak isn't tariffed because the gvmt already gets the tax advantage from my corporation being American based and my workers taxes and their spending money within the US) how it was interpreted was "goods" now means you can actually produce a product outside of the US and as long as it's received by an "american based" company you're still not tariffed on it. (IE: computers, cell phones, servers) this is why your IT and Manufacturing jobs are getting sent to China, Brazil, India, Germany, etc)

    2. The idea of the second tax break was actually to help American businesses that were doing business outside of the US and experiencing lag in agility due to funds not being easily convertible into foreign currency. We wouldn't tax you when you move those funds to make payment for the goods that you are shipping into the US for US production. See where this one is going? Make a shell company to receive the money, they bank it...no more taxes on your monies.

    These are the loopholes that need to be closed. I agree with Olympia Snowe you can't back tax a corporation for taking advantage of our stupidity, but moving forward there should be no grandfathering and proper taxation.

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  20. Lazy? Someone missed the day in math class when we all found out that 14.6 Million unemployed is MUCH LARGER than 83,000 new jobs.
    Business does not want to hire because they have no idea who the government is going after for new taxes/fee next. Why hire/expand if suddenly there is a new tax that makes you lay-off? Stop with the medical insurance, taxes, etc. Start enforcing ie illegal immigration.
    How much of the stimulus money has gone to the illegals? Look at the new home credit, how many illegals work for the home builders, how many work for the road construction?
    Stimulus funds should put legal american workers.

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  21. I would like to see the sons and daughters of the Senators who will not vote for extending this unemployment get kidnapped and held until the bill gets passed.

    This is a hard line to take but, these people are playing Russian Roulette with people's lives while the GOP gives tax breaks to the very businesses who sent many of our jobs overseas.

    If they are put in a corner, they will pass this bill pronto.

    I find it reprehensible that the same political parties who sold our jobs overseas are now balking at paying out unemployment insurance to those who are now unemployed through no fault of our own.

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  22. I have seen post saying we dont want to work well i would gladly take a job for 7.00 hr it would be better then no job and i use to make 11.00 hr. i want to work i have worked since i was 16 year old and now just shy of 50 i still want to work but can not find a job. there just are not any here. so just pass the bill and then make more jobs so every one can work. Help the people in this country then help others.

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  23. I am unemployed.

    I would love to have a job.

    I was making 22 and hour as a Superintendant building highrise condos.

    Now would be happy to make 8 in a 40 hour week so we don't lose the house we have been living in and paying off for the last 17 years.

    And if I do lose everything we struggled to keep for all these years. Become homeless and poorer while the rich get richer. I will take it as a sure sign of class warfare. Which will make the rich my enemy. And I will have no hesitation when I take from them what I need to survive as they took from me and mine so they could survive in luxury.

    Politicians? I'll be glad to set them on fire. Every lying seditious traitorous one of them. From the Rethuglicans to the Dumbascraps. Their job was to represent the American people. They have obviously lost sight of this. Some public executions would definately be the thing to remind them of who they are supposed to work for.

    It is well passed the time for Americans to take their country back from the carpet baggers.

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