Even if you accept the idea that unemployment helps the economy by providing those without work money to spend, and thus inject it into the economy, how can it possibly help create jobs?
Well, Nancy Pelosi seems to think it does.
Personally, I think she's either lying or not seeing straight. In any case, she's definitely drinking some kind of fancy-shmangled koolaid that only our politicians seem to have access to.
First, umemployment is paid from federal taxes collected. Those paying the taxes are employed, and thus being "productive" (I know not all workers can be described as productive, thus the quotation marks). Those who are unemployed (through no fault of their own and I really hope the large majority want to get back to work) are "unproductive", since they aren't working. So, in this case, the money taken from the "productive" (those employed) is being given to the "unproductive" (those unemployed). Of course, an added insult here is that those receiving unemployment have to pay taxes on that money!
Ultimately, though, unemployment is a symptom. Focusing so much time, energy, and money on a symptom just doesn't make a lot of common sense to me. While I can accept temporary relief as the real problem is addressed (which is why companies aren't hiring or are reducing headcount, and there are a large number of reasons for that, thanks to our government), I find unacceptable this apparent effort to make it a mainstay by saying it *creates* jobs. My common sense tells me that's a pipe dream and I shouldn't buy into it.
Then, there is the moral hazard associated with unemployment. If one accepts the meager living they can make on unemployment, why look for real work?
Albert Einstein was indeed a genius, and not only in physics. With proposed solutions like this from our leaders, his sage advice of "never look to those who cause a problem to solve it" seems more common sensical than ever.
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