Was the OP being facetious with his initial post or is he/she schizo? Day after day I read the gripes about Bernanke and QE1, QE2, etc, etc...and other government largesse, but then this post about the multiplier effect essentially contradicts every other post on the subject.
If you read the CBO report... (where the bs came from).. it says it could stimulate .70 to 1.90. its basically pulled out of thin air by the CBO. They also discount the idea that if they did no pay UE benefits those out of work people would get jobs. In reality you have 70 to 1.90 - minus a real job. If a real job pays more, than the effect is negative.
IF there was no such thing as extended unemployment benefits lasting more than 26 weeks this economy would not be where it is now. They have paid out over $300 Billion in extended emergency benefits over the last 2-3 years, if they pass this next extension it will be the 5TH TIME!!!!!! On top of this you have the other trillions of dollars that have propped up the economy over the last few years as well. No one has any comprehension of what a real recession or down turn is this economy is, every time a simple little slow down occurs they pump it back up like they did after the dot com bust and again of course after this last crisis were in today. They think by stimulating and throwing massive amounts of money at the problem that it actually becomes a solution which really isn't the answer to any of this. There is no growth in the US or beyond, its all stimulus and low interest rates creating liquidity to make believe there is actual growth. GDP here in the united states is just an illusion that's being propped up by Bubble ben bernanke and friends. There are no free markets when you have constant intervention.
Right, I agree with all of this, which is why I'm confused with the tone of your initial post. You made it seem like you either advocate or agree with the assertion of the multiplier effect.
Heck, why not just have Uncle Sam send us a check every day for a grand? Nobody would have to work and we'd all be rich! Yay! _______________________________________________________ Nope, most will be brought down to the poverty level. Keep it up Uncle Sam. Your on the road to take 90% of the Americans in the middle class down in to the depths of hell....POVERTY. Hey Middle Class who voted for the Progressives....I hope is a short road for you!
I don't know the exact numbers of those on unemployment who were making more than unemployment is paying them now but it seems those people collecting unemployment are probably making more than they would if they went out to get a job paying $400 or $700 a week. Think about it. A person was making 75k now unemployed collecting say $450 a week. That person after taxes probably came home with $900-$1000 a week is now collecting the most they can from unemployment which will make approx $450. Now this person is struggling to find a job paying a minimum of at least 55k to keep up with his lifestyle, but cant and has to opt into accepting jobs paying anywhere between 25k and 45k, now why would this person who is making $450 a week want to go out and get a job getting 45k, after taxes and all other things that come with it there coming home with $600-$650 a week. That person knows they can do nothing and still receive $450 a week. Not only that but most people looking for jobs now are of course "OVERQUALIFIED" who would ever think in our system we would ever here that word, overqualified to work as an assistant manager in a clothing store like the gap or cheesecake factory. Seems the millions of jobs the economy lost over the last 2 years were jobs with that "special title", the jobs with titles that made those making $75k $100k and even $300k feel good about themselves, that they meant something to this economy and the company they worked for, well fast forward to today and you can see titles and the company you work for dont mean as much as they used just 10 or 20 years ago. Its a different playing field today. Those millions of jobs with those special titles are never coming back ever again!!!!