Obama/Carney: Unemployment Benefits Create 1M New Jobs

Discussion in 'Economics' started by bone, Aug 11, 2011.

  1. bone

    bone

  2. Carney responded: "Oh, uh, it is by, uh,
     
  3. I wonder how you logic this out..
     
  4. Why not? One of the Tea Party dudes was out and about the other week claiming more should be spent building unneeded military equipment because it puts people to work.

    The Tea Party claiming gov't creates jobs - whodda think?
     
  5. canmo

    canmo

    Yeah, of course, very interesting point. WTF, simplify it to 'family level', and it will be crystall clear .. Let's assume - one family member is unemployed. Then his working brother/sister/father whatever gives him money to buy food/pay bills - this unemployed guy pays and many people providing him food/electricity/clothes are get paid. Nice, job creation :) , but only under one important assumption - money he got from working family member are 'surplus' money, i.e. it's part of accumulated wealth of the rest of the family. In this case everything is fine - tough times, saved extra wealth is used to weather the storm..
    But, if there is no extra money, and family borrows money to help unemployed brother - it borrows it from , let's say , neighbour family, which holds a bakery, and that unemployed guy takes they borrowed money and bring back to that bakery to buy a bread :) .. What a joke.. That bakery owners are completely fools (if they are not charity driven) - they lend money to people to buy they products - besides an interest(which might be not paid), they can exclude borrowers from the chain and pay themselves their own money to produce more bread for nothing.. or , even exclude that step of paying their own money to themselves, they can just work for nothing and produce more bread. That won't create any new job, because normal people won't work for nothing. My point here is that unsecured borrowed money ('unsecured' loan) doesn't produce anything except of waste and destroying, before even we talk about moral hazard. And since US borrows money now , refinancing debts every 2-3 monthes with bigger amounts, it's definitely not creating anything, but just destroying the country..
     
  6. Lucrum

    Lucrum

  7. bone

    bone

  8. MKTrader

    MKTrader

  9. TGregg

    TGregg

    You think you are kidding. They however, will try this.