Mike Barnicle: What about the fact that unemployment benefits pumped into the economy are an immediate benefit to the economy. Immediate.
John Shadegg: No, they're not.
…
Mike Barnicle: Let's go back to what you said about unemployment checks. Unemployment checks, people don't spend that money?
John Shadegg: No. they will spend as little as they can because they'll hold on to it as long as they can. In reality, they don't create jobs.
- “Households receiving unemployment benefits tend to spend the additional benefits quickly, making this option both timely and cost-effective in spurring economic activity and employment.” -- CBO Director Douglas W. Elmendorf, statement for the Joint Economic Committee, February 23, 2010.
- “No form of the fiscal stimulus has proved more effective during the past two years than emergency UI benefits, providing a bang for the buck of 1.61—that is, for every $1 in UI benefits, GDP one year later is increased by an estimated $1.61.” -- Chief Economist of Moody’s Analytics Mark Zandi, testimony before the Senate Finance Committee, April 14, 2010.
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