Thursday, July 1, 2010

Pelosi: Guide to the Land of Cockaigne

Evidently, Nancy Pelosi has made a profound discovery. It is a breakthrough that, if real, promises to usher in a new age of prosperity and to transform the modern world into a veritable Land of Cockaigne. What is this breathtaking revelation? In this video, the Grand Madame explains:
Unemployment insurance... this is one of the biggest stimuluses [sic] to our economy. Economists will tell you, this money is spent quickly, it injects demand into the economy, and is job creating. It creates jobs faster than almost any other initiative you can name, because it is money needed for families to survive and it is spent, so it is has a double benefit. It helps those who have lost their job but it is also a job creator...
Wow! Really? So the government can pay money to the unemployed and create jobs?! If this is true, shouldn't all working Americans quit their jobs, collect unemployment, and thereby create jobs? Would this not create a "double benefit", that is, they could all survive by spending the money, but, at the same time, create jobs?

Let me get my simple mind straight. Say that Joe makes $10 working and Steve does nothing. Now, the government taxes away Joe's $10 and gives it to Steve. Steve certainly spends the $10, and that's good for those receiving the $10. But, what about Joe? He had his $10 taken from him, so he can not spend $10. What about the people that would have received $10 from Joe? In total, how does this do anything other than transfer wealth from one group to another?

I'm sure someone in the mainstream media will pester Madame with this dim-witted query, and I will soon be relieved of my ignorance. Nancy? Nancy?

4 comments:

mtnrunner2 said...

:( Blogger zapped my last comment, and gave me a 404 - "page not found" error ?? Second time today on different sites.

Pelosi belongs with these guys: http://en.wikipedia.org/wiki/Shell_game

Good Reisman article I found today: http://mises.org/daily/3353. He points out that stimulus inherently encourages wastefulness, because the goal is spending, not profit. So, the more people you hire to screw in that light bulb, the better.

Doug Reich said...

Yes, I've read that Reisman article; excellent. Thanks for link!

Neil Parille said...

Why are liberals so against military spending then? It should be the best stimulus possible: employs people directly and funds lots of high paying jobs in the defense industry.

-Neil Parille

Doug Reich said...

Neil,

Evidently, their theory breaks down when the work approximates anything close to the legitimate function of the government.