You did what was right, you played by the rules, lost your job through no fault of your own, and we should have unemployment insurance at this very special time. …But yesterday, the unemployment insurance expired. That means that unless we do something about it, by December 31, 2 million Americans will lose their unemployment insurance. …This is something that is not only good for these families; it’s the right thing to do in a downturn in our economy. But it’s also the right thing to do to grow our economy. Economists tell us that unemployment insurance returns $2 to the economy for every $1 spent. …You hear talk about extending tax cuts to the wealthiest people in America. $700 billion in tax cuts to the top 2 percent in our country. Tax cuts for the rich do not create jobs. Unemployment insurance creates jobs; does not add to the deficit. – Excerpts from a speech by Nancy Pelosi
The above statement is so ignorant, so full of falsehoods, it is hard to know where to begin.
I can buy that idea that many of the unemployed lost their jobs through no fault of their own. So, whose fault is it? Could it be that excessive spending and over regulation has hurt the economy to the extent that the recession has been prolonged and unemployment has risen? In that case it would be Congress’s fault.
But Nancy Pelosi thinks that unemployment and the compensation the unemployed receive for not working are good for the economy because every dollar spent in unemployment benefits magically multiplies into two dollars.
But the only way that the unemployed can receive that dollar is if government takes it from someone else and gives it to them. When that happens, the person from whom the dollar was taken has a dollar less to spend. That makes the whole process of taking and giving a net zero gain.
According to Ms. Pelosi, $700 billion in tax cuts to the top two percent in income adds $700 billion to the deficit.
Nancy, Darling, are you too dense to realize that extending the Bush tax “cut” is not a cut? Keeping the tax rate (which has been in effect for eight years) the same just means that the rich get to keep and use the money that they already have.
St. Paul said that religious people should pray that the rich prosper even more. How do you think the rich get their riches? They get them by taking risks, growing their businesses, and creating jobs. The more they prosper, ther better it is for everyone else.
Repealing the Bush tax cuts would represent the largest tax hike in history. That money will be spent by government which doesn’t produce anything and would add another $700 billion to the federal deficit. The dollars extracted from the “rich” through a tax increase removes that money from the economy … money that can be used to expand businesses, purchase goods, and create jobs.
According to Nancy’s whacky way of thinking, our economy will improve as people lose their jobs. By that reasoning, if everyone was out of work the economy would really be chugging along. But then where would she get the taxes she needs to pay the unemployed for not working?
The only way to grow the economy is by putting people back to work. Extending unemployment benefits is a disincentive to work and tax increases hurt expansion and economic growth.