So what happens when 2 million people no longer have unemployment benefits? That's two million people no longer putting money into the economy. Without action, more and more will reach the end of the belt and fall off. The effect, who knows what it will be? Will people start holding up banks or hurling themselves from bridges? Will fast food joints suddenly be rife with shift supervisors with MBAs and Starbucks latte slingers have better educations than their customers?
As long as demand for goods and services remains low, no matter how many tax cuts are given, no company will hire extra workers. Right now there is a pool of hungry and desperate workers, every corporation's wet dream. Just a few years ago, in the middle of the credit bubble, companies had to offer outstanding benefits to keep workers happy and the unions at bay. Now, they can force people to work harder for less. This is their chance to roll back years of precedent both in benefits and regulations. This is their golden opportunity to blame unions, the government, whatever and people desperate enough will follow anyone who promises to make things better for them.
Of course Republicans will vote against extending unemployment benefits, using their argument that unemployment checks stopping will force people to get a job of some sort. I did not get unemployment because I resigned but after 7 years of sales/telecom experience, I'm back to waiting tables like I did through much of college. That's not the "American Dream" that people talk about.
When I started at Sprint years back, the benefits were some of the best around and they would do nearly anything to keep good employees. Matching 401k, free cell service, tuition reimbursement, etc. The 401k matching disappeared shortly after the tuition reimbursement was marched around back and shot in the head. Employees who were unhappy were forced out or fired, those who remained were tasked with carrying the extra load until they could no longer handle it. I was one of those who finally snapped.
Companies will continue to turn a healthy profit every quarter as long as they continue to keep the workers hungry and politicians on their payrolls. Any major protest or uprising would be quickly quashed even if it was organized to begin with. The people with guns are firmly in the pocket of the Republican party and Democrats don't have the spine to stand up for the people who elected them. Regulation and startup costs have nearly stifled the ability for the average person to create a successful alternative business that would compete with any of the major corporations. They have the ability to pay the fines and hire the lawyers it takes to get around the regulations that they claim to oppose, the little guys don't.
Anyhow, I digress. What the main point here is that while Republicans so adamantly preach "trickledown" economics, they're more than willing to remove 2 million consumers from an economy that so desperately needs them while claiming that the economy will get better if we just keep the taxes for the rich from going up. Like I said, supply and demand has to be there and as long as people aren't buying, no company will be hiring despite any tax breaks that are there.
Dude, this one comes across like you took it right from the mouth of Gibbs. He is a dim wit, so repeating his logic is not good for you.
ReplyDeleteUnemployment is subsistance. It is not a boost to the economy. The economy is boosted by people spending money that is extra. There is a difference. Why are there so many people on unemployment in Panama City? Is it because the Democrats just took 1692 jobs out of the economy just in Bay County. Why are most drawing unemployment now? It is because it is just enough to take the incentive out of the effort. Why work when your short term needs are being met? What exactly is wrong with a person with an MBA waiting tables to earn their own living? Does the piece of paper make them some how above getting their own money?
Sure companies can be more picky in hiring, but that does not mean that there are a bunch of QUALIFIED people coming through the door. My company has had a now hiring sign out front for weeks. The average starting pay there is about $375 a week with health insurance (for now) a matching 401K and all of the rest of the normal benefits. Do you know how many of the newly unemployed from Sallie Mae are now working at Buffalo Rock? NONE. Why? Because their Unemployment check is close enough to this that they don't need to get out and work.
When my wife lost her job due to Obama's agenda, she took a job making 40% less than she was making. It was in part about the principle of not being dependent. The point is that the "economy" doesn't suffer as much as the Dems want us to think if reasonable Unemployment Benefits are in place. What causes the weaker economy is indeed the OVER regulation and higher taxes and the fiscal instability that Obama has injected into the economy. People with the means (The so called Rich) will not spend their money to invest if there is fear of losing the returns to higher taxation and deeper regulations. They put it to the side.