On Sat, 19 Feb 2011 14:20:50 -0500, BAR wrote:
In article ,
says...
On Sat, 19 Feb 2011 08:11:53 -0800, wrote:
Unemployment benefits are one of the
MOST stimulative things around.
I don't think there's any evidence for that. A lot of smart people
would argue that new infrastructure projects, as long as they're
really needed, not only create jobs but also leave behind something of
long term value. More importantly they increase the velocity of money
flow which is a basic economic principle.
Look I have money in my left hand. Close your eyes. No open your eyes.
No the money is in my right hand. It is the same money it has just been
moved from one hand to the other. There has been no wealth creation.
There is no new money. There is no increase in the amount of money. It
is all just slight of hand.
No idiot... most if not all of the money from an unemployed person who
receives benefits is SPENT IMMEDIATELY. That is stimulative. Giving
rich people a few $1000 does next to nothing. They put it in savings
and maybe a little of it ends up as stim.