Unemployment Insurance - one of the best forms of economic stimulus, _ USA Today

[JohnWxy]

http://www.usatoday.com/money/economy/employment/2010-07-15-unemployment15_CV_N.htm

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The President's Council of Economic Advisers calculates that every $1 spent on unemployment benefits boosts economic output by $1.60. Similarly, the Congressional Budget Office says unemployment checks offer the biggest bang for the buck of any government policy designed to jump-start economic growth — anywhere from 70 cents to $1.90 for every $1 spent on benefits. Mark Zandi, chief economist at Moody's Analytics, pegs the figure at $1.61.

In a report out Thursday, the Economic Policy Institute tallies up the economic benefits of jobless people spending their unemployment checks and concludes that expanded unemployment benefits, including health insurance subsidies, are responsible for adding 1.15 million jobs since 2007, partly offsetting the 8 million jobs lost since the recession began. The institute also says spending by the jobless has allowed thousands of other Americans to work more hours. Extending jobless benefits is "compassionate, but it's also good economics," Mishel says.

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They also note that the senators blocking the legislation aren't consistent budget hawks. Most senators opposing the jobless benefits bill on June 30, for instance, approved a budget-busting $410 billion Medicare prescription benefit when Republicans controlled Congress in 2003; they didn't pay for the benefit with offsetting cuts.

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Even now, Stabenow notes, Republicans want to extend former president George W. Bush's tax cuts — adding hundreds of billions of dollars to the deficit — without paying for them.
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"Moody's Analytics concluded that few government stimulus programs did more for the economy than extending jobless benefits. Every $1 in benefits generated $1.61 in economic growth." (see table in article_JW)


Clearly, NOT approving extending Unemployment benefits will only make the employment situation WORSE, as those losing their unemployment benefits will spend even less, putting more people out of jobs!

Republicans want to make the Bush tax cuts for the wealthiest in the nation, permanent which will produce $.32 of stimulus for every $1.00 of lost tax revenues.

the Republican plan is to undermine the Democrats efforts to rebuild the economy shattered by Republican economic policies, then go out and campaign saying: "Look how the Democrats and Obama messed up the economy!-- vote us in!"

[Omaha Steve]

1. I guess Republicans don't read the USA Today

Or they would pass the extension. K&R!

[dkf]

2. Does anyone have ideas on how to create jobs?

If so why don't I hear them?

It would be sad if the only idea we have is basically a charity program.