http://www.politico.com/story/2014/01/unemployment-benefits-update-102165.html
This article was written after the article in my most recent post. Where the last article discussed the controversy of implementing such an idea, this article discusses Senate denying it. In two different votes to extend unemployment benefits, the bill was rejected 52-48 and 55-45, where a vote of at least 60 was necessary to pass it.
I believe it was a good thing that this bill was not passed, it would have increased the deficit and caused the United States to extend our "mandatory spending cuts" all the way until 2024. Although spending cuts are deemed necessary with the current state of our economy, the money could be used to fix other problems instead of possibly creating new ones.
Issues like this are always extremely difficult because there are many pros and cons of both sides, and someone will always end up dissatisfied with the final decision. Furthermore, it is difficult to get a majority vote to pass such a bill that has unexpected outcomes.
As we have recently learned about real GDP and the components of GDP, what component do you believe could best stimulate the economy and help it in the direction of substantial positive growth, consumer spending, government spending, investments, or exports and imports?
I believe consumer spending could best help the economy. Because of the multiplier effect, money spent by the consumer is far reaching and helps perpetuate supply, which helps jobs, etc. When you think about it, government spending is really just consumer spending (the money comes from taxes), but done less efficiently and less directly than consumer spending.
ReplyDeleteI think that it is bad that they did not pass the extended unemployment benefits. I believe the people out there need some kind of assistance while they are on the hunt for jobs. Although at the same time I do not believe that unemployment benefits should go on forever, just long enough so the people have a fair chance to get a job.
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