It's Really Not That Complicated

[babylonsister]

:grr::grr:

http://www.washingtonmonthly.com/archives/individual/2010_11/026854.php

IT'S REALLY NOT THAT COMPLICATED.... At midnight, 2.5 million unemployed Americans will lose their benefits -- the first time in generations that jobless aid has expired with the unemployment rate this high. Democrats in Congress and the White House support an extension, but don't have the votes to pass one.

And as awful as this is for the struggling families who rely on these benefits, the expiration of the aid undermines the larger economy at the same time. On MSNBC this morning, Rep. John Shadegg (R-Ariz.) captured Republican confusion on this, in response to questions from Mike Barnicle.

BARNICLE: What about the fact that unemployment benefits pumped into the economy are an immediate benefit to the economy? Immediate...

SHADEGG: No, they're not! Unemployed people hire people? Really? I didn't know that.

BARNICLE: Unemployed people spend money Congressman, 'cause they have no money.

SHADEGG: Aha! So your answer is it's the spending of money that drives the economy and I don't think that's right. It's the creation of jobs that drives the economy.... Job creators create jobs.

Watching the video of the exchange, I'm inclined to believe Shadegg actually believed what he was saying. With that in mind, I have no interest in questioning his sincerity.

It's his intelligence I have a problem with. This really isn't complicated -- when the unemployed get a check, they spend it. When it comes to getting a strong bang for the buck, jobless benefits have proven to be one of the best economic stimuli in policymakers' tool-belt.

Shadegg believes job creation boosts the economy, but there's a little detail he's struggling with: businesses need customers. When 2.5 million people stop spending, businesses lose customers, which in turn makes them less likely to hire employees.

The data on this is incontrovertible. If Republicans want what's best for the economy, why can't they think this through?

Also note the larger, Dickensian context -- Republicans are fighting tooth and nail for $700 billion in tax cuts for the wealthiest people in the country, but they're poised to kill extended unemployment benefits for those struggling to find work in a weak economy, at a fraction of the cost.

Raising taxes on the rich under these circumstances is considered madness. Leaving jobless Americans with no benefits and no buying power under these circumstances is considered responsible.

This isn't a surprise, of course. Republicans have repeatedly argued throughout the recession that those struggling to find work in the midst of a jobs crisis are lazy and quite possibly drug addicts. Of course they're prepared to screw over the people most in need of assistance; they just don't like the unemployed.

But as the recovery continues to struggle, Republican opposition to jobless aid only guarantees more struggling, weaker economic activity, and more poverty. It's an easily-preventable disaster, which GOP officials in Congress are willing to just watch unfold.

—Steve Benen

[abelenkpe]

1. But as the recovery...

continues to struggle, Republican opposition to jobless aid only guarantees more struggling, weaker economic activity, and more poverty. It's an easily-preventable disaster, which GOP officials in Congress are willing to just watch unfold.

...and then blame democrats in power.

How is it possible there aren't enough votes???

[annabanana]

2. Clearly, Shadegg is an idiot. . .n/t

[unblock]

3. ask virtually any would-be employer, or actual employer, why they aren't hiring

nearly all of them would agree that it's the uncertainty as to whether or not the market would support the additional production. i.e., they don't believe they can sell the additional product that would result from additional hiring.

in short, the DEMAND IS NOT THERE.

yes, job creators create jobs (brilliant, innit?) but only in response to DEMAND. why on earth would a job creator create a job if they thought the money wouldn't be there to BUY the product?

shadegg and his ilk aren't necessarily stupid, they're completely and stubbornly BLIND to the demand side of the equation.

[golfguru]

4. How about sending all of us weekly checks

employed or unemployed...and we will rev the heck out of the economy!

[Thrill]

5. This is the kind of thing people should be pissed with Obama on

Not so much some of the other nonsense he gets blamed for. But he should be all on TV. Even if he as to do an oval office address to get this done. Thats a legit gripe. Why can't he get out there and fight for these people?

[mstinamotorcity]

6. Well it might

work except you have members of the Democratic party siding with repugs. There are some members of the Democratic party that have a loyalty to the 2% and not to all of America. This isn't about unemployment benefits for millions its about the extension of the Bush tax cuts. They figure if they starve enough of us then we will cry uncle. And there will be some who will. They will ask the President to give them whatever they want as long as they can get some type of income restored. And all that uncertainty about where business is headed, check the Cayman Islands!!!!

[jeanpalmer]

7. They have the votes

and the talking points. They just don't have the courage to use them.

[rasputin1952]

8. Apparently, they don't have the votes...

:(

[wackywaggin]

9. Calling their Bluff !!

I'm in the lower middle class making abround 50,000.00 per year between my wife and my employment. So, go ahead, end the tax break.It makes little difference to me and if it will help other folks by me giving a little more, so be it.

Heretic Wack :0)