Posted by: Ann Corcoran | August 11, 2011

Carney: unemployment checks will create jobs

You’ve heard of the circle of life—well this is a good example of the circle of money envisioned by Democrats.

I kid you not, this is from Obama press secretary Jay Carney to a Wall Street Journal reporter’s question about how more unemployed people getting unemployment checks would lead to the creation of a million jobs.

From Real Clear Politics:

“I understand why extending unemployment insurance provides relief to people who need it, but how does that create jobs,” Wall Street Journal’s Laura Meckler asked Jay Carney at Wednesday’s WH briefing.

Carney responded: “Oh, uh, it is by, uh, I would expect a reporter from the Wall Street Journal would know this as part of the entrance exam.”

“There are few other ways that can directly put money into the economy than applying unemployment insurance,” Carney said.

Carney answers the question: “It is one of the most direct ways to infuse money directly into the economy because people who are unemployed and obviously aren’t running 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 with unemployment insurance, that way, the money goes directly back into the economy, dollar for dollar virtually.”

For Lefties like Carney the money flows in one big circle from the government to the people, then back to the government via people paying taxes.  The government then sends it back out through unemployment checks.  Of course the slightest redirection of the money (say under the mattress or out of the country) means the amount flowing back to government is always less than flowing out.  Gee, guess that is how we got into this mess in the first place.

One of many questions I have for Carney about his theory on the great money cycle is (besides a question about where is the incentive to work and become a taxpayer), since we have been paying unemployment checks to millions in recent years, why haven’t the millions of  jobs materialized?


Responses

  1. the man is truly an idiot, and perfectly suited to be part of this inept administration.

  2. Circle of money. LOL Nice. I think it’s the let-them-eat-cake math.

  3. First of all, let me explain how Carney is wrong in his thinking. Carney, and the left (I’ve heard Nancy Pelosi make this same argument) claim that unemployment checks directly infuse money into the economy, therefore creating jobs. It does not. People who have lost their jobs do put unemployment money back into the economy. They buy groceries (just like they did when they were employed,) that keeps the checkout girl at the grocery store employed. It does not create a job. They pay their car insurance, which keeps their insurance man employed, it does not create a job. I could go on but, I think you can get the drift of what I’m saying. In no way does people being out of work “create” jobs, unless, of course, you happen to be a politician, then, maybe.
    Secondly, I always like to think of these things in a backwards fashion. Where do the unemployment checks come from? They come from the employed tax payer. When the employed taxpayer numbers decrease, and the unemployed numbers increase, then where does the unemployment check come from? Oh, we may have to borrow some money! Some more money, that is.
    The left is so incorporated into the idea of give them hand-outs, they will vote for us, forever, that it is unbelievable.

    • You are only too right, Greg, about what the truth is about the way the unemployment money gets back into the economy. They just don’t seem to understand what it means to have to pay for food and shelter. For those in power life is grand because the check book isn’t going to ever run out.


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