You know, it’s great how the San Franciscan Stretch Face has about the same level of economic knowledge as a retarded spider monkey:
Unemployment benefits are creating jobs faster than practically any other program, House Speaker Nancy Pelosi said Thursday.
Talking to reporters, the House speaker was defending a jobless benefits extension against those who say it gives recipients little incentive to work. By her reasoning, those checks are helping give somebody a job.
"It injects demand into the economy," Pelosi said, arguing that when families have money to spend it keeps the economy churning. "It creates jobs faster than almost any other initiative you can name."
The sheer ignorance of such statements is astounding. Keeping in mind that the law of supply and demand is a fundamental economic law, she is just plain wrong to make such an imbecilic statement.
So, now that I’ve probably gotten some people’s butts to clench in anger, I think I’ll back up my statements.
My first premise is that any government, at any given level, does not produce anything to the economy, they merely redistribute production into other areas. The government does not make money like the private sector, it simply confiscates it from the private sector, often by force.
My second premise is that the laws of supply and demand apply to just about everything in the economy from goods to services to labor to knowledge itself. If you have an idea that someone is willing to buy from you, you’ve just supplied a demand. There is nothing that can be done to violate these fundamental laws, only delay their inevitable results.
Given those premises, My conclusion is that the government can do nothing to create demand that doesn’t already exist. The best they can do is either accelerate or exacerbate either supply or demand through their policies. Remember how car sales skyrocketed during the Cash for Clunkers program? That was a case where the government placed the demand for new cars on economic adrenaline. In the end, the program went way over-budget and the demand fell drastically after the program was over.
In the same way, unemployment benefits only put money in the hands of people temporarily, so it’s more like forcing the current economic conditions to remain steady, rather than create demand. The Federal government in the United States does not create money, the banks do through fractional reserve banking, once they have the capital injected from the Federal Reserve.
There are a couple of reasons why Nanny Pelosi would say something like this with a straight face (besides the plastic surgery freezing it): she’s either an economic idiot or she’s a devious sociopath. In other words, she’s either lying or just plain stupid. For many on the Left it is hard to tell since many are complete retards while at the same time many are willing to push their failed ideology through lies and deception.
San Franciscans should be ashamed of their representative.
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