Unemployment Benefits Create Jobs?
22nd December 2011
Freeberg is skeptical.
This is a constant in progressive rhetoric, I notice. Put the money where we tell you to put it…and, see, when you do that, [whoever gets it] is going to spend it, and that will invigorate the economy and create jobs. Wheeeee! Whereas, if the money was left with whoever had it in the first place, who knows what they’d do with it. Wipe their butts with it or something…
One rule of inference and prediction that has never let me down is: Everybody adapts, in some way, to everything. If consumers are feeling tight with their dollars, the businesses are going to anticipate a dwindling revenue stream and look for ways to cut expenses. If everybody picks up a certain amount of money being unemployed, then even valuable employees will be “parked” by the businesses — let go, told to re-apply, maybe we’ll re-hire you when things turn around again. If it actually works that way, then the employee has been converted into a sort of rental commodity. Rent the employees just like you’d rent a car: Define the need, pay for it as long as you need it, when you’re done return it to the state which is the actual owner of the “car.”
The government as a temp placement agency. I suppose there’s no shortage of people running around who think that’s how it’s actually supposed to work.