“Unemployment benefits are creating jobs faster than practically any other program, House Speaker Nancy Pelosi said Thursday.”
Talking to reporters, the House speaker was defending a jobless benefits extension against those who say it gives recipients little incentive to work. By her reasoning, those checks are helping give somebody a job.
“It injects demand into the economy,” Pelosi said, arguing that when families have money to spend it keeps the economy churning. “It creates jobs faster than almost any other initiative you can name.”
Pelosi said the aid has the “double benefit” of helping those who lost their jobs and acting as a “job creator” on the side.
“It’s impossible to think of a situation where we would have a country that would say we’re not going to have unemployment benefits,” Pelosi said.
Democrats have been trying for more than a month to pass a bill extending jobless benefits to more than 1 million people. Currently, jobless benefits last nearly two years — up to 26 weeks paid by state treasuries with federal help for up to an additional 73 weeks. Source
Pelosi seems to be suffering from dementia
Comparing government printing money out of thin air and giving it to people in the form of unemployment cheques is very similar to a situation where companies make fake profit where there are no sales generated. It’s also very similar to the days of the USSR where workers pretended to work and employers pretended to pay their employees. It’s a way to make your company seem like it’s doing better when it is. It’s a very temporary fix and a downward spiral because next quarter you have to fire more people to keep the appearance of profits or your stocks dip, and the more people that become unemployed the less people can afford to spend.
This is part of the overall problem with North America as a whole nowadays; we don’t make our money by producing things anymore, we make it through financial schemes and fake economic growth, and that’s why we have these bubble’s bursting. Our economy isn’t built on a solid foundation.
It is reminiscent of a scene from a movie where a king is trying to build a castle on a piece of land and it keeps collapsing. So he gets one architect after another to come and build the castle, but it keeps on collapsing, until one person comes along and points out that the problem is that the land their building it on is unstable. That’s our economy, we build it on unstable land (fake profits, manipulation of the stock market) and then it collapses.
Deflation likely outcome
Following the Great Depression, the Fed and the U.S. government embarked on a program…both of increasing the creation of new money and credit and of fostering the confidence of lenders and borrowers so as to facilitate the expansion of credit. These policies both accommodated and encouraged the expansionary trend of the ’Teens and 1920s, which ended in bust, and the far larger expansionary trend that began in 1932 and which has accelerated over the past half-century. Other governments and central banks have followed similar policies. The International Monetary Fund, the World Bank and similar institutions, funded mostly by the U.S. taxpayer, have extended immense credit around the globe.
Their policies have supported nearly continuous worldwide inflation, particularly over the past thirty years. As a result, the global financial system is gorged with non-self-liquidating credit. Conventional economists excuse and praise this system under the erroneous belief that expanding money and credit promotes economic growth, which is terribly false. It appears to do so for a while, but in the long run, the swollen mass of debt collapses of its own weight, which is deflation, and destroys the economy. A devastated economy, moreover, encourages radical politics, which is even worse.