Sunday, July 18, 2010

Shut-up Stupid Sunday: Unemployment Benefits

The Senate Republicans and Democrat Ben Nelson (no relation and I’d like to sue him dishonoring my last name) have stalled the effort to extend unemployment benefits, going against what has always been done during times of high unemployment.

Here is how unemployment benefits cushion our economy.

A laid off worker gets the $300 per week and uses it to pay bills and buy household items, rather than being homeless and begging for change. Which keeps them from being a larger economic burden than the $300 per week.

They then spend a large part of that money locally, buying food and household items, at the local supermarket. Roughly a third of that money goes to labor costs for the store, the clerks, stockers, and all the other people needed to keep the store running.

These people then spend that money on their own household as most of them live paycheck to paycheck with little savings. So the unemployment benefits of others are literally keeping them employed.

This money works its way up the economic pyramid, with the clerks and retailers being dependent on the unemployed getting benefits, and manufacturers, restaurants and small banks being dependent on the retailers, and the upper end being dependent on them producing real goods (even though the big banks are still manufacturing fake money based on nothing).

So by stalling the paying of unemployment benefits the Republicans and Ben Nelson are kicking the base out from under the economic pyramid, which will make the whole thing come crashing down.

So to them I say, “Shut-up Stupid, any arguments you have for denying people unemployment benefits don’t stand up to any economic wisdom at all.”

By Darrell B. Nelson author of Invasive Thoughts

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