Monday, October 25, 2010

The New Definition For Stimulate

Let's start with this doozy of a claim and proceed from there: http://www.nationalreview.com/articles/250673/stimulus-814-billion-flop-deroy-murdock

So, Ms. Pelosi recently said "It [unemployment payments] creates jobs faster than almost any other initiative you can name." Only in DC could someone make such a lamebrain claim as more unemployment payments is good for job creation. Pardon me for a moment while I digest that. [Pause] Okay, now give me a minute to recover from a really, really painful brain freeze that just came over me. That's an interesting idea ... except for the inconvenient FACT that government welfare robs people of the will to 'do' for themselves and returns to the private sector (where it'll do some good) LESS than it extracts from taxpayers. Only in DC can someone think that a net taking of money from the private sector stimulates jobs there. How about some actual facts Ms. Pelosi? Oh, and some sanity too?

Many reputable investigations into unemployment compensation at the level and duration of payment we have today have concluded that it significantly reduces the incentive to work. There's a reason why some 80% of those on unemployment find jobs within two weeks after their unemployment compensation runs out. Think about that. After being on unemployment for nearly two(!) years (99 weeks to be exact), nearly all unemployed people find work within two weeks.

One can logically and rationally deduce ONLY one thing from that: the only thing unemployment compensation (ie. becoming financially dependent on the government) stimulates is laziness and remaining unemployed. That also speaks volumes about the real truth of government welfare in general. The REAL truth Ms. Pelosi is this: facts, if you're interested in them, say that termination(!) of unemployment payments is THE best stimulus to getting people off their duff and back to work!

Only a liberal like Ms. Pelosi could come to the conclusion that government welfare stimulates employment in the private sector. The government takes money FROM the private sector to pay people to stay out of work in the private sector and she thinks the 'net' of it is more people working in the private sector. Of course, unemployment has that social safety net thing going for it and that's a good thing up to a point which we're well past.

We DO need unemployment compensation. But there's plenty of evidence that too much money for too long a time robs people below the poverty level of the motivation to look for a job. Personally, I think that after about 4 months of receiving unemployment compensation people should be required to do something worthwhile for their community (for no 'extra' compensation) in order to continue receiving that unemployment check. THAT would stimulate two things: the people paying them their unemployment money (ie. you and me!) would get some value from it and there'd be some motivation to find a real job. But that's a subject for another time.

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