Thursday, July 1, 2010


As Speaker of the House, Nancy Pelosi is the keeper of the national wallet.  She has also been the driving force behind every major spending bill that has come to the floor since 2007.  She is responsible for passing the budget and even created legislation that would, as she and others in the administration insist on alleging, "save or create" jobs. 

Today, she came out with a statement that not only brings up questions about her competence, but her sanity as well (perhaps a botox-induced brain injury?).  When talking to reporters today about extending unemployment benefits yet again in a "jobs" bill she has been trying to put over for the past month, her spin went spiraling out of control:

"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."

What she is trying to say is that the unemployment benefits put money in people's pockets, which they then spend.  That spending is apparently what causes job creation.  If that were so, some of those unemployed people would be getting those new jobs, right?  But with the jobless numbers bad yet again, it sure doesn't seem like her half-baked scheme is working. 

Someone should clue Ms. Pelosi in that the spending people do when they are on unemployment is on the bare necessities - things there are already jobs for.  It is when you spend over your normal budget on 'splurge items' that potential jobs might be made.  Considering unemployment benefits only pay a fraction of what people made at the jobs they lost, there is no additional spending - every last penny is spent on necessities. 

In fact, one might argue that high unemployment causes even more job losses, because the unemployed people are not only not splurging anymore, they are also tightening their belts - cutting out expenditures like, say, pest control or dining out entirely, and reducing costs by dropping things like premium cable packages or cell phone service for more basic plans.  This reduction in spending affects the bottom line of various businesses, which then effects their job creating abilities.  It's economics 101, Madame Speaker. 

Perhaps Ms. Pelosi should be put on unemployment this year so that she can understand the concept more fully....

Above and beyond that, the best she can come up with for job creation is unemployment benefits?   Hundreds of billions of dollars down the rabbit hole at this woman's insistence, and this is what we get for it?

How is this woman not being laughed out of Congress - or ridden out of town on a rail?

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