Mortgage Grapevine

Political: Unemployment Stimulates The Economy...

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by capital4u February 24, 2012 12:41 AM

Lord knows I have my issues with this administration and VJ in particular - but I don't really think this article fairly characterizes what she said. She didn't say that unemployment stimulates the economy, but rather the unemployment insurance benefits that are received by unemployed individuals stimulate the economy.

One can certainly argue that the meta-effects of the UI system paying out benefits aren't nececcariily good for the economy (what with the increased taxes that employers pay) but her statement that when a person cashes their unemployment check and spends it has a stimulatory effect on the businesses where it is spent, is valid.

by MichiganTed February 24, 2012 9:10 AM


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