House Speaker Nancy Pelosi told reporters that it was very important to extend unemployment benefits  stimulate the economy and is the fastest way to create jobs.

From Eyeblast.tv

Pelosi’s comments as reported by Fox News

“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.”

Pelosi said the aid has the “double benefit” of helping those who lost their jobs and acting as a “job creator” on the side.

“It’s impossible to think of a situation where we would have a country that would say we’re not going to have unemployment benefits,” Pelosi said.

If that was the case then why after repeated benefit extensions is the economy still in a rut?  And if this was a job creator then why is unemployment still near 10%?  Because extending unemployment benefits does not create jobs but only prolong the misery.

Maybe one can argue that the checks save some jobs that might have disappeared without the spending but that would be for basic services which is what recipients spend their benefits on to stay afloat.  But create jobs?

Whatever you call it, Pelosinomics, Obamanomics etc… the bottom line is that it is a failure and we need someone who actually understands economics to get our economy and our country back on track.

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4 Comments for Pelosinomics: Unemployment Checks Create Jobs