UE Benefits: "It’s probably the biggest boost that we can give an economy"

[newonecoming2]

Originally Posted by pghquest

And where do you think the money will come to pay for this? Increased pricing on products, thereby draining the consumers of spendable cash.. thereby destroying the economy and causing more job losses..

Looking at the ratio of median housing prices to median household income if the median house prices go much above 3X the median household income then too much money goes into servicing the debt and not enough goes back into the economy and the economy contracts, then as the economy contracts the prices of houses drop. When the prices of houses drop far enough to get the ratio back inline then you get growth in the economy. (Japan has been down this road 20 years and they still haven’t bottomed out.) So if we double the median household income, we can support a 1/3 increase in the median price of houses from the peak of the last bubble. Where do I think the money to pay for the higher wages will come from? The short answer is the new equity in people’s homes. That is long term. In the short term the money would come from an economic stimulus package given to everyone.

Yes prices on everything would go up. That is the point behind what I am talking about.

[newonecoming2]

Originally Posted by pghquest

Where do you think banks are losing money? They are making record profits
Bailed-Out Banks Raking In Big Profits - washingtonpost.com

[SIZE=3] [/SIZE]http://boombustblog.com/reggie-middleton/2010/12/28/as-clearly-forecasted-on-boombustblog-housing-prices-commence-thier-downward-price-movement-in-search-of-equilibrium/ I have read this blog about 80% through from 2007 on. Try searching it for extend and pretend, and PPG. The number of insolvent banks is staggering.

[newonecoming2]

Does a Higher Minimum Wage Reduce Jobs? Here is an interesting take on minimum wage increases

[hawkeye2009]

Originally Posted by sanrene

So says that economic genius, barack obama. The media never challenges him on this ridiculous claim.

RealClearPolitics - Video - Obama: Unemployment Benefits "Biggest Boost" To The Economy



If that were actually TRUE, then we should be rooting for MORE people to lose their jobs and start collecting UE benefits, right, right?

See, what obama and the Left fail to realize is that people collecting UE are living pay check to pay check, buying the essentials like food, paying their bills, just getting by. They don't have the money for those extras or luxury items.

These are NOT the circumstances or the segment of the population that will boost the economy, get it rolling again. The people who will give a real jolt to the economy are the ones who are working, but due to uncertainty, anxiety and fear, are holding back on spending above and beyond the essentials. Like decorations for the house, new clothes for the kids they might not actually need, vacations over the Christmas break, spending more on entertainment, movies, dinners. The kind of people who have the money for those extras but have decided to NOT cut loose........kind of like me.

The man and his circle of advisers are truly clueless, but what can you expect when the vast majority of them haven't ever run a business or had private sector work experience.

Amazing, isn't it?

By liberal "logic", the best thing we can do for the economy is to give everyone unemployment benefits and food stamps. It is certainly a strange world when a political party trumpets the benefits that occur as a result of unemployment and economic misery.

Perhaps the left should thank Bill Clinton and his NAFTA and China most favored nation trade status for all the wonderful things he has done for US manufacturing.