Sunday, July 04, 2010

Basic Logic defied, so what else is new?

Last week, Nancy Pelosi, Speaker of the House, made the asinine comment that Unemployment checks were the best way to stimulate new business.

This weekend, Media Matters, the far left wing watchdog group, defends that claim.

The basic problem with that claim is that it is obviously and practically wrong. First, we have to recognize that Unemployment is only a percentage of your regular pay when you were employed. Generally speaking, it was about half your salary. So with half your salary, you're supposed to be able to help start new businesses with the flood of money you're getting?

First, you're going to pay housing and food with your money, everyone does. Then you're probably out of money. Most people are. Health Insurance? Out of your ability to pay probably, at least with only unemployment coming in. So where do these great business opportunities to serve the unemployed come from?

Walmart and Sam's club already have discount groceries covered, better than you'd be able to anyway. So perhaps you'll go into business creating affordable housing? But there are already houses empty because the owners couldn't or wouldn't make payments on them. So who exactly would get this affordable housing? Or who would fund it, provide you a loan in other words?

Media Matters claims that this has been demonstrated by the Congressional Budget Office as true. Is that the same Congressional Budget office that regularly mis-estimates the cost of anything and everything? Basic common sense says that the statement is untrue, yet we have experts running around explaining how it really is true. Yes, up is down, black is white, and half pay is better than your old paycheck.

Perhaps if we can arrange for Nancy to live on Unemployment for a while, with no other source of income, she might be able to demonstrate how it is going to be funemployment to us.

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