UE Benefits: "It’s probably the biggest boost that we can give an economy" (unemployment rate, minimum wage)

[sickofnyc]

A study by Moody's Analytics recently found that every dollar spent by the government on benefits for the unemployed produces an overall return of $1.61 for the economy. Guest host Lynn Neary talks with Moody economist Sophia Koropeckyj about what makes unemployment checks stimulate the economy, and why other types of government spending don't do nearly as much good.
How Unemployment Benefits Stimulate Economy : NPR

[HappyTexan]

But since that $1 is not earned by the unemployed person another question would be..how much does every $1 in unemployment benefits COST the taxpayer ?

Really you want the NET here..not cherry pick part of the chain.

[lifelongMOgal]

Originally Posted by sickofnyc

A study by Moody's Analytics recently found that every dollar spent by the government on benefits for the unemployed produces an overall return of $1.61 for the economy. Guest host Lynn Neary talks with Moody economist Sophia Koropeckyj about what makes unemployment checks stimulate the economy, and why other types of government spending don't do nearly as much good.
How Unemployment Benefits Stimulate Economy : NPR

That study does not account for borrowing and/or printing that same $1 of UE benefits and the true cost. What is that cost? More quantitative easing and monitizing of our debt. Further devaluing of the dollar. While that may seem fine in regard to the deficit and the interest we have to pay back it hurts the purchasing power of the average American.

[bluebelt1234]

Having too few jobs and millions out of work only boosts the economies of Maruchan Ramen Noodles and Top Ramen. I am sure these two companies are in the black big time right now.

Most unemployed people would much rather have a job than more unemployment. I know because I am one of them. Unemployment is just a constant struggle.

[sanrene]

Originally Posted by sickofnyc

A study by Moody's Analytics recently found that every dollar spent by the government on benefits for the unemployed produces an overall return of $1.61 for the economy. Guest host Lynn Neary talks with Moody economist Sophia Koropeckyj about what makes unemployment checks stimulate the economy, and why other types of government spending don't do nearly as much good.
How Unemployment Benefits Stimulate Economy : NPR

So then...we should be hoping for more job losses and people on UE benefits, right?

The whole notion is hogwash, completely ridiculous. As we have seen the old $1 of benefits = $1.60 return is utter nonsense.

People on UE DON'T engage in the kind of spending needed to stimulate the economy. They are just barely getting by with the essentials.

[sanrene]

Originally Posted by Smash255

The CBO agrees with Obama. Extending the unemployment benefits puts $$$ into the hands of those who need it the most. As a result they are the quickest to spend what they get. That in turn increases demand which in turn increases jobs.

We've seen just how well that theory works, haven't we?

2 years of UE benenits HAVE NOT resulted in an increase in jobs, exactly opposite in fact.

So again, if UE are so stimulative, we should want even MORE people out of a job and on UE, right? With that question, do you see how this "theory" of the Left falls to pieces?

[Isitmeorarethingsnuts?]

Originally Posted by Smash255

The CBO agrees with Obama. Extending the unemployment benefits puts $$$ into the hands of those who need it the most. As a result they are the quickest to spend what they get. That in turn increases demand which in turn increases jobs.

I may agree with this statement if the unemployed were out buying new TVs and clothes etc. The ones I know try to pay rent, utilities, insurance, taxes and buy food. For most, anything beyond that just isn't in the cards. So yes, I would believe the CBO could suggest that those on UE are the quickest to spend it. I'm just not sure how those necessities are going to stimulate the economy.

[HappyTexan]

But if UE is a fraction of their old salaries then how is demand increased ?
I would assume they are paying their rent and utilities first and whatever is left over goes to food.

I don't think UE provides much discretionary spending which IS what drives demand.
I just don't see the logic here that people getting less money than what they used to get will boost the economy. If anything, it will stagnate it or drive it lower.

Less money = less demand.
That is exactly what Bernanke is complaining about..the recovery isn't happening as fast as he wants it.

[Xanathos]

Here's something nobody has ever answered:

So people (mostly the ones already on unemployment) that advocate extensions use this whole "it's the best stimulus for the economy" line....

....And then in the very next sentence are whining about how they only make 300 dollars a week and how it's not enough to do anything and you can't even survive on it because it's such a pittance.

So which is it? If it's such a pittance that you can't even survive on, then how can it be such a great stimulus? The argument that the money gets pumped right back into the economy is specious. If it's so little to live on, that money is simply going to landlords, banks, utility companies and, in all probability, Starbucks (because just because you're broke doesn't mean you should have to sacrifice a 5 dollar latte, or so the American entitlement state of mind is).

You can't have it both ways.

[roysoldboy]

Originally Posted by TempesT68

Obama is a republican. Siding with the 900 billion dollar spending plan the republicans are pushing is ridiculous. The left need to stand their ground and let everything expire. Spending is the worst thing we can do now.

If spending is so bad now, why did the Dems ram that Stimulus law down our throats. Oh yeah, I keep forgetting that well over half of that thing was just earmarks.

How much money has gone into unemployment checks in the past 2 years. Why didn't those people spend on something other than necessary things when anybody knows that that would have stimulated the economy more than spending on just necessaries?

Did you read my thread starter about Dems being the people who Rasmussen is polling this week? I was pointing out that most of the far left, you and some of your friends, think of Obama as a Republican now. Ain't it the chits to have yourself so easy to see through?