Of all the ludicrous claims voiced by Democrats, the latest boast about jobless payments stimulating the economy merits special recognition for its utter lack of intellectual honesty.
When legislation to extend unemployment benefits reached a stalemate in Congress last week, the Democrats went on the offensive. They painted Republicans as a party that cares not a wit for the downtrodden because the GOP was insisting on budget cuts to pay for the extension. President Obama weighed in, calling the GOP tactics shameful. That gained sufficient traction in the media to compel a few cowardly Republicans to end their attempts to block passage of the measure.
Once the bill was signed into law, Democrats began crowing about how the measure was really about "economic stimulus". House Speaker Nancy Pelosi, only two heartbeats removed from the Presidency, used those exact words in defending the billions added to the federal deficit as a result of the legislation. Ohio Democrat Sherrod Brown chimed in, calling the extension "the smart thing to do for our economy".
The logic behind such assertions rests on thin ice. Under the Democrats' reasoning, once employment benefits are restored, these out-of-work citizens will become consumers again. Their spending will pump more money into the Obama Recession Economy. Only an economic illiterate would believe such a flimsy hoax. Democrats obviously think most Americans are Dumb and Dumber.
First of all, the benefits fall far short of what most people need just to meet their monthly rent. Jobless payments will average $309 a week for the nearly five million people whose 26 weeks of benefits had expired. Imagine all the consumption and economic pump priming that kind of money will buy. After paying for rent, utilities and food, there can't be much left over on an income of $1,235 a month. Therefore, it is sheer folly to suggest that the benefits will somehow lift the country out of the recession.
Secondly, economists have pointed out that the total benefits to be paid out represent less than one-quarter of one percent of the economy. In other words, its impact can hardly even be measured, much less felt. Yet according to Democrats, the billions of dollars paid in benefits is the smartest thing to do for our sickly economy. Really? If that's true, the Democrats' actions are a sad admission that they have no idea how to rebuild America's economic engine.
Thirdly, every dollar paid in jobless benefits is one dollar less that another American has in his pocket. The government took the money from taxpayers to give to the unemployed. When one taxpayer has less money and another gains income at that person's expense, then the net-net economic impact is zilch. Only an economic moron would claim that the economy was boosted by a transference of wealth.
Furthermore, one could argue that the taxpayer would have spent the $309 on discretionary goods and services that actually would benefit the economy, instead of using it for the essentials. This is not to suggest that the unemployed should be stripped of benefits. But it illustrates how it is an egregious lie to argue that giving taxpayer handouts to the jobless actually boosts the economy.
Of course, no one in the media ever points out any of this. Instead, they repeat the words uttered by Democrat politicians without a ounce of fact checking.
Speaker Pelosi and her minions have done nothing to create more employment opportunities for out-of-work Americans who are forced to accept government largess. The sad fact is Democrats and President Obama don't understand government's role in putting more people back to work.
If the Democrats really wanted to help the jobless, they would reduce taxes on every business, create incentives for corporate investment, open the credit spigot for small firms and reduce regulations across the board. Instead, they are patting themselves on the back for extending jobless payments.
That should give every American pause to consider whether the current Washington crowd should be entrusted with reviving the moribund economy.
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