Pelosi: Extending Unemployment Benefits Will Create 600,000 Jobs

Do you believe taking a bucket of water out of the deep end of the pool, and pouring it into the shallow end, somehow increases the water level?

Liberalism is a complete fraud and utter lie......
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I will let F.A Hayek explain it for me.
http://mises.org/books/tiger.pdf

 

Really?

She didn't mean it?

No way, this is the best idea since Cash for Cars....$3 billion that created a few hundred jobs in Germany and Japan. and we know those workers will eventually vacation in Hawaii, especially if the dollar keeps falling.

Say it isn't so.....

 

But what about the "velocity of money"? Doesn't that alter the dynamics?

Besides, some of the water would spill out of the buckets and that would be used to pay more unemployment insurance benefits wouldn't it?

 

I guess all those business owners that have to make goods and services for all those people on unemployment would be happier with less customers.

 

For the last time there is no single correlation between aggregate demand and employment.

 

That seems unlikely, since the amount that you get from unemployment is indexed to the amount that you made on your job. Do you have a source for what you're saying?

 

I guess I'm not following your metaphor? To answer your question ... well, yes, actually, when you first pour the water into the shallow end, the water level of the shallow end is briefly raised until the water flows back to where it's even. If the bucket of water is taken from the deep end, then the water level of the deep end lowers first, and then the water level of the shallow end goes further shallow as it flows to compensation the deep end. But when the water first flows into the shallow end, then yes, the water level at the shallow end is momentarily higher than it was at the beginning, before any water was removed in the first place.

 

You lost me. Sorry.

I have a business. If my customers had more money, they would spend more of it in my store and then I would be able to hire more employees, which would work out somewhat to my favor as my employees spent their money at my customers' businesses, thus giving my customers more money to spend in my store.

 

You seem like a smart guy so I will give you a reading assignment .

Please read appendix III from this link.

http://mises.org/books/puretheory.pdf


Basically an increase in the demand for consumers' goods (stuff) will mean a reduction in available capital and therefore a reduction in the productivity of labour and the demand for labor at any given real wage.