Since when has taking money out of the economy, then putting it back stimulated the economy? Liberal Keynesian economics explained.
(CNSNews.com) – House Minority Leader Nancy Pelosi (D-Calif.) said unemployment insurance benefits act as a “safety net for our whole economy,” adding that they simultaneously constitute “probably the most important” stimulus for the economy.
Except she can’t explain why increasing unemployment benefits from 26 weeks to 99 weeks haven’t done a thing to stimulate the economy or lower the unemployment rates.
During a Capitol Hill press conference on Thursday, a reporter asked Pelosi why she has not brought unemployment benefits into the debate over the so-called fiscal cliff.
Pelosi said, “As far as the unemployment insurance is concerned, that is something that is really a safety net for our whole economy. It’s not just a safety net for individuals. It’s a safety net for our economy.”
“Our economy, our capitalist, free market economy is one that swings back and forth in terms of ups and downs,” Pelosi said. “And when it is down, people have paid into an unemployment insurance program and then they have those benefits, which probably are one of the most important stimuli for the economy.”
Employers pay into the unemployment insurance program, not the workers.