Wednesday, August 11, 2010

Beck reacts incredulously to Pelosi's accurate statement that unemployment benefits stimulate the economy.

Beck finds it simply incredulous that Pelosi could believe unemployment cheques stimulate the economy.

The people who agree with Pelosi are economists:

In a January 14 report on "Policies for Increasing Economic Growth and Employment in 2010 and 2011," the nonpartisan Congressional Budget Office (CBO) stated:
Policies that could be implemented relatively quickly or targeted toward people whose consumption tends to be restricted by their income, such as reducing payroll taxes for firms that increase payroll or increasing aid to the unemployed, would have the largest effects on output and employment per dollar of budgetary cost in 2010 and 2011.

According to a table in the report, CBO estimated that increasing aid to the unemployed would have the greatest effects on GDP per dollar of budgetary cost and the second highest cumulative effect on employment of the policy options considered.

If you want money to move around the system, it makes sense to give some to people who have to spend it.

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