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Originally Posted by SOREHOOF
Sooooo.... the more people on unemployment the better? Nice economics lesson! Are you sure you don't work as an adviser to the Administration?
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Nope, obviously not the more is better. But when unemployment is excessive and outrageously high, we'd better keep paying them unemployment.
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NEWSFLASH.. Unemployment (by definition) exists because the jobs have already gone away. People without jobs tend to spend less money than people with jobs.
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Yes, that's why paying unemployment works so well in the economy - all of it goes out immediately into basic needs like groceries, gasoline, rent, utilities.
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You stated elsewhere on this thread that saving is bad. If people save they have something to fall back on when times get tough. Why don't you hire some people and help jumpstart the economy? Oh, that's right unemployment grows the economy
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I said saving is bad during a recession. When the recession started, our savings rate as a nation jumped, but that's bad for the recession as that takes more money out of the economy. The point is to "stimulate spending" during recession, to help the recession end and keep the economy moving.