Pelosi: Jobless benefits biggest stimulus for economy evah

posted at 9:30 am on July 2, 2010 by Ed Morrissey

Honestly, the big takeaway is not the laughable notion from Nancy Pelosi that jobless benefits provide the biggest possible stimulus to the economy that Congress can create, although that’s both ridiculous and provably incorrect.  We’ve been extending stimulus benefits for almost two years; has the economy been stimulated by it, and has it led to an explosion of new jobs?  Not according to today’s unemployment report, or really any of the previous reports from the past two years.  The Right Scoop’s clip actually shows what it does stimulate — straw men:

Let’s count the straw men:

  • “This is one of the biggest stimuluses to our economy” — No, it’s a net drain on the economy, although for understandable purposes.  It reroutes capital from production to non-production.  We are paying people who aren’t working by using capital that could otherwise go to creating jobs.  It’s a policy tradeoff and understandable, although not for 99 weeks, which is what Pelosi is attempting to extend further.
  • “It injects demand into the economy” — Not at the rate in which the capital gets destroyed.  Remember, the money for this program gets confiscated from producers and passed through the government bureaucracy to non-producers.  What winds up back in the hands of producers is much less than what left their hands in the first place.
  • “It creates jobs faster than almost any other initiative” — No, it doesn’t.  In fact, it depresses job creation, which is part of the policy tradeoff.  If this was right, we’d be at zero unemployment by now.  Tax cuts, especially on capital gains, creates jobs by getting capital into the hands of job creators.
  • “It’s impossible to think of a situation where we would have a country without unemployment benefits” — That’s not actually the debate.  No one is suggesting that we eliminate all unemployment benefits.  The debate is whether we will keep extending them further.

Maybe we should just start calling it the Straw-Man Stimulus, because that’s the only production it seems to incentivize.


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CambellBrown

I forget. We’re you on CNN or MSNBC? I lost my pension in Dec. of 2009 and took a job at an ATT calling center for $8 and hour plus commission. I worked there for 9 months and lost that job.

I am 60 years old and was feeling sorry for myself. (I’m not saying that you are)I put up $500, approximately, to start my own business and now I work for myself and rely on myself. I just started this business and made $2500 my first 4 weeks. Indications are that I will do a lot better than this in the near future.

I am surprised that I made this much my first month because I assumed that people would tell me times are too hard and they couldn’t spend the money for what I was offering. I feel really optimistic because I am a hard worker and will make this go. If you keep searching you will find something but you must keep up your spirits. Good things come to those who work for it.

Keep in touch because we will give you encouragement!

Vince on July 2, 2010 at 12:18 PM

The response to Pelosi http://www.youtube.com/watch?v=0MRmxfLuNto

The Notorious G.O.P on July 2, 2010 at 12:19 PM

Nancy Pelosi = Hasn’t got a clue.

GarandFan on July 2, 2010 at 12:42 PM

Is she dumb, or what?

“This is one of the biggest stimuluses to our economy”

Madam Speaker, every slightly educated person would call them “stimuli”.

Schadenfreude on July 2, 2010 at 12:56 PM

What an economic illiterate.

She continues to blame Bush for her years in Congress under him, saying ‘he set the tone, as president’. And, yet, she’s doing the same thing, now, as she was doing, back then (only worse). And it’s still Bush’s fault. Seriously, though, her credibility was already in the negatives, and to come out and say this?! Again, it shows she’s an economic illiterate. Leave it to an uneducated socialist to say that it’s better for the economy to have people living off the state, than to have people working for their own pay, earning much better wages and salaries. Pelosi’s reputation is unsinkable, but that’s because it’s already on the bottom of the ocean. Trying to sink her, now, is like dropping depth charges on the Titanic.

Pelosi’s a failure, from a family of failures. Her relatives have been politicians, and they were just as piss-poor as she is. Now you know where she gets it from.

Virus-X on July 2, 2010 at 1:10 PM

Question?

Has this Congress/Admin done everything possible to ensure unemployment remains high?

It seems like the unemployed are being setup as pawns in Obama/Congress greater cause.

Kinda like his handling of the oil leak.

DSchoen on July 2, 2010 at 1:38 PM

Pelosi is yet more proof that the modern-day Democrats have only three operational modes; Ideological, Dogmatic, and Stupid.

Except for Obama, who goes with Dictatorial, Vindictive, and Petulant.

To me, the only thing more worrisome than knowing that Obama is pitching and Biden is his designated hitter is that, if either one pulls a hamstring, “Screwball” Pelosi is the pinch-hitter warming up in the bullpen.

I’d compare them to the Chicago Cubs, but I don’t go around gratuitously insulting professionals, like the Cubbies.

If you need any more incentive to get out the vote in November, consider that having a Speaker of the House who is not a complete moron might make The One and BiteMe just nervous enough that they might actually think before doing something exuberantly stupid just because their leftist dogma demands it.

Because doing something dumb enough to be worthy of impeachment or forced resignation would leave somebody who isn’t one of their “soulmates” in charge.

clear ether

eon

eon on July 2, 2010 at 1:44 PM

I am 60 years old and was feeling sorry for myself. (I’m not saying that you are)I put up $500, approximately, to start my own business and now I work for myself and rely on myself. I just started this business and made $2500 my first 4 weeks. Indications are that I will do a lot better than this in the near future.

I am surprised that I made this much my first month because I assumed that people would tell me times are too hard and they couldn’t spend the money for what I was offering. I feel really optimistic because I am a hard worker and will make this go.

I am interested in what you sell. Please tell me it is not a multi-level marketing gig, in which case I will know your claims of making $2500 are bogus. lol

If we could start drilling, anything substantial really, jobs would come back. Anything energy/food/natural resource related. Here’s hoping that November turns it around!!

CambellBrown on July 2, 2010 at 1:47 PM

Vince on July 2, 2010 at 12:18 PM

What kind of business did you start?

Oldnuke on July 2, 2010 at 1:59 PM

Just more reinforcement that liberalism is a mental disoder. Listen to the libs and see that you can’t make this stuff up if you are sane. Gore and the masseuse, Obama and the Statue of Liberty, historians and their list of best presidents, Peloser and Reid every time they open their mouths. The list goes and on.

volsense on July 2, 2010 at 2:04 PM

CambellBrown on July 2, 2010 at 1:47 PM

Oldnuke on July 2, 2010 at 1:59 PM

I work business to business helping them with compliance with FACTA, HIPPA, ID theft rules and regulations. I also help them with marketing via a web site and customer relationship management tools. I am also can do group plans for their employees regarding ID theft.

Most of the $500 went to getting a license in Missouri and Illinois. I had to pass a test for my Missouri license because I reside here.

No, Campbell, I don’t sell soap or perfume or vitamins. I work with a publicly held company, listed on the NY stock exchange that sells for about $50 a share currently. I am an independent contractor with them so I pay all of my expenses. It is not life or health insurance but I know that I am not supposed to shill on this site so I don’t know what else I can tell you.

Vince on July 2, 2010 at 2:13 PM

Pelosi is a troll for stupidity. You want jobs? Take her gavel away. NOvember!

TN Mom on July 2, 2010 at 2:32 PM

No worries for us middle class folks — we can pull out out:

OBAMA MIDDLE CLASS TAX EXEMPTION CARD!

Mutnodjmet on July 2, 2010 at 3:11 PM

Anyone who doesn’t think that Pelosi is an incompetent jackass moron corrupt idiot is an ignorant fool themselves, or on her payroll.

Must we suffer this insect until November?

We used to know what to do with ruinous aristocrats like her and it wasn’t just vote them out.

She needs to pray to whatever god she bows to that we don’t remember, before November.

NoDonkey on July 2, 2010 at 3:13 PM

Everybody’s clapping themselves on the back for being brighter than Pelosi. Ha, ha, she’s so dumb. Meanwhile, she and the Dems have managed to push the focus away from the Democrats’ horrific bungling of the economy to Republicans’ vilification of the unemployed. Excuse me, who are the idiots here?

We’re in the middle of the worst recession in 80 years. The Democrats OWN the House, the Senate and the White House making THEM responsible for fixing it.

What’s the Republican response? Attack the unemployed! “They’re lazy drug-taking scum! They’re just sitting around enjoying not being able to pay their bills! Why, my aunt’s gardener has a cousin who knows someone who likes getting an unemployment check! That means they don’t want a job! I say burn the unemployed in a big fire!!! Yeah!!!”

It would be hilarious if it weren’t so idiotic and destructive. The unemployed should be THE BIGGEST ALLIES REPUBLICANS HAVE. But no-o-o-o. “They’re all on drugs!” (Orrin Hatch)

Always count on Republicans to jump with both feet into the most obnoxious, idiotic, self-destructive option available. It’s stupidity with a turbo charger on it.

Stop making the voters the enemy and start making them your allies. A crazy idea, I know. S–t like this makes me want to not even bother to vote.

Django on July 2, 2010 at 3:48 PM

The botox has completely eaten this womans little brain.

la.rt.wngr on July 2, 2010 at 4:51 PM

No one is suggesting that we eliminate all unemployment benefits. The debate is whether we will keep extending them further.

I’ll suggest it. It is not authorized by the Constitution or any amendment.

AshleyTKing on July 2, 2010 at 5:43 PM

Wow!

You would think that taxpayers would be able to find somebody who was more qualified to be Speaker of the House, since Pelosi’s job pays $223,500 + benefits!

http://usgovinfo.about.com/od/uscongress/a/congresspay.htm

We all need to be working hard NOW in every single Congressional District to make sure Pelosi loses her Speaker’s gavel in November!

wren on July 2, 2010 at 6:30 PM

A crazy idea, I know. S–t like this makes me want to not even bother to vote.

Django on July 2, 2010 at 3:48 PM

Perhaps you shouldn’t. Why are you going off on this site instead of writing your congress people? Also, don’t believe everything the media feeds you.

Vince on July 2, 2010 at 8:05 PM

We’re in the middle of the worst recession in 80 years

You’re right, and yet for all the talk about the ‘economic illiterate’, many of the points made in this article are complete nonsense. Unemployment benefits don’t consist of ‘transfer payments’ from the employed; like other forms of recessionary spending, jobless benefits are another form deficit spending. It’s nothing more than a pipe dream that austerity measures will help the economy recover or that unemployment benefits are artificially raising unemployment rates. The numbers are clear- job openings are very scarce across most parts of the nation.

As to the best of my knowledge, tax cuts alone have never triggered significant job creation in a major balance sheet recession. With both business and households focusing on capital preservation, lower taxes don’t offer a fix. As Barron’s and other finance media have pointed out, when the private sector fails to spend, the public sector is the option of last resort.

bayam on July 2, 2010 at 8:40 PM

Perhaps, in a rare by required move, the Congress could complete a budget and the appropriations bills on time as required by the 1974 Congressional Budget Act.
I know asking Congress to actually do their job is a lot to ask and doing so is such a long and boring endeavour, but we could have Michael Jackson’s doctor come in and pass out enough drugs so even the late Robert Byrd could still vote.

J_Crater on July 2, 2010 at 10:14 PM

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