Thursday, August 11, 2011

Bring Back Robert Gibbs...

...because his successor as Press Secretary/Lackey is an incompetent boob who can't answer fundamental questions about the claims he (and by extension the administration) makes.  Press Secretary Jay Carney says that that extending unemployment benefits could create one million new jobs.  And then the fun begins...
"I understand why extending unemployment insurance provides relief to people who need it, but how does that create jobs," Wall Street Journal's Laura Meckler asked Jay Carney at Wednesday's WH briefing.

Carney responded: "Oh, uh, it is by, uh, I would expect a reporter from the Wall Street Journal would know this as part of the entrance exam."
In other words, "I don't have an answer, so I'll just be a complete smart-ass instead!" Cute. Really cute.  How about the real answer, which is, it doesn't, and in fact would hamper hiring because employers would have to shell out more money to fund the unemployment insurance program.  It's shockingly simple, and yet so many people either are ignorant of the issue or willfully blinding themselves due to ideological primacy.

Again...less money = less hiring.

(Before anyone starts complaining at me about how those big eeeeevil corporations are "sitting on trillions", let me remind you that most employment in our fair country does not come from those corporations, and so to bring this up is a glorious non-sequitur of the first order.)

Carney then attempts to answer the question:
"It is one of the most direct ways to infuse money directly into the economy because people who are unemployed and obviously aren't running a paycheck are going to spend the money that they get. They're not going to save it, they're going to spend it. And with unemployment insurance, that way, the money goes directly back into the economy, dollar for dollar virtually."
I am not even going to get into the quasi-doublethink of how transferring money from one hand to another can cause 'growth', but rather let's look at this from a practical matter.  An unemployment check could be a thousand dollars or fifteen hundred dollars a month. Consider what one has to pay in the normal expenses of life - rent, gas, utilities, food.  That's about it, if it even goes that far.  There is no room for anything that would remotely be considered 'luxurious', which is where the true expansion of the economy takes place, thus creating more employment.  

A system that essentially incestuously recycles money is only at best going to maintain the status quo and at worst, continue to contract.  With all the attempts at 'stimulus' over the past 2 1/2 years, that is exactly what we have gotten - stagnation at best, continued contraction at worst.  

America in 2011, Ladies and Gentlemen!

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