In a recent oration, V. Jarrett proposed that
“People Who Receive that Unemployment Check Go Out and Spend It and Help Stimulate the Economy”
This is a totally absurd thought. Take this to a logical example. If a 3rd party, say a government, extorts a dollar from me, since I am a worker who own my own business. Let’s say I make pizza, and sell it for a dollar.
So the government takes a dollar from me and gives it to someone who is not working because, well, they aren’t working.
OK, so now that person spends it at my pizza shop to by a large cheese pizza.
According to V. Jarrett, that is stimulating the economy.
According to my accountant, I just sold a large cheese pizza for zero dollars.
My profit, zero. Which means that I must now either raise the cost of my pizza and risk going out of business
I can just go out of business.
So now, instead of a pizza shop employing workers, accountants, energy suppliers, delivery trucks, and suppliers of raw materials,
I am on unemployment asking for that dollar to buy a pizza for a dollar.
And the people I employed and the suppliers all feel the pinch.
So to say that the theft of a dollar is stimulating is Ignorance in it’s most basic format.
Perhaps all government employees and elected officials should be compelled to read
‘Economics in One Lesson’. Originally written in the ’40s it is amazingly relevant today.