CBO: Unemployment benefits the most effective government policy for generating growth

[NNN0LHI]

http://blog.nj.com/njv_editorial_page/2010/12/unkind_cuts_unemployment_exten.html

Unemployment extension should be restored

Published: Thursday, December 02, 2010, 5:59 AM

<snip>Besides choking a lifeline for hundreds of thousands of people, cutting jobless benefits also means our fragile economy will take another whack. Every $1 spent on jobless benefits generates up to $1.90 in economic growth, according to the Congressional Budget Office.

That makes unemployment benefits the most effective government policy for generating growth out of 11 options analyzed by the CBO.

Tax cuts to the rich show less economic benefit because wealthy people are more likely to save a chunk of that windfall, economists say. But because the long-term unemployed have already drained most of their savings, they have little choice but to spend their benefit checks right away, pumping cash into businesses.

So wise up, lawmakers. Thirty-three economists recently signed a statement calling for jobless benefits to be extended for another 12 months, including five Nobel Prize winners. Take some smart advice and stop ignoring the unemployed.

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1. Recommend

[3waygeek]

2. Rachel Maddow has been pointing this out

for the last several weeks now. Good to see someone else picked up on it.