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08.16.2011 1

Unemployment benefits creates jobs?

Jay Carney

If unemployment benefits created jobs, as Jay Carney the Press Secretary for Obama explains below, then why hasn’t the Obama administration pushed for a nationwide program for putting all Americans on unemployment insurance so that job creation flourishes?

These folks have proven that they will sink on the ship known as the Keynesian Titanic:

QUESTION: “I understand why extending unemployment insurance provides relief to people who need it, but how does it create jobs?”

White House Press Secretary Jay Carney: “Oh, it is by — I would expect a reporter from the Wall Street Journal would know this as part of the entrance exam just to get on the paper — (laughter.)  But the — no, seriously.  It is one of the most direct ways to infuse money into the economy because people who are unemployed and obviously aren’t earning a paycheck are going to spend the money that they get.  They’re not going to save it; they’re going to spend it.  And unemployment insurance, that money goes directly back into the economy dollar for dollar virtually.  So it is — and when it goes back in the economy, it means that everywhere that those people — everyplace that that money is spent has added business.  And that creates growth and income for businesses that then lead them to making decisions about job — more hiring. So there are few other ways that can more directly put money into the economy than providing unemployment insurance.” (White House Press Briefing, 8/10/11)

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