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GOP Takes The Economy Hostage

Posted by Chris Liebenthal on December 1, 2010

From The Daily Reporter comes a story showing that extending the unemployment compensation benefits, which expired on Tuesday, would do much more for the economy than restoring the Bush era tax cuts, which helped get us into this mess.

The facts are simple, when an unemployed person receives his or her check (national average being around $300), he or she is much more likely to spend that money on things like food, gas or to pay some bills.
On the other hand, someone who is already wealthy is much more like to sock away the money from one of their tax cuts, preventing that money from entering circulation, which in turn will only hurt the economy all the more.
Some of the predicted outcomes of not extending the unemployment benefits include:

• Annual economic growth could fall by one half to nearly 1 percentage point.
• Up to 1 million more people could lose their jobs.
• Hundreds of thousands would fall into poverty. 

“Look for homelessness to rise and food lines to get longer as we approach Christmas if the situation can’t be resolved,” said Diane Swonk, chief economist at Mesirow Financial.

And yet we have a bunch of Republicans that are saying they will only agree to the extension if it is tied in with the extension of the Bush tax cuts.
How stupid can they be?



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