GLP, I would not have you ignorant concerning unemployment benefits

Econ 1001


It is to your best interest that the govt pays unemployment benefit, and let me tell you why.

There is a process, called a multiplier, that works like this:

Let's say the govt pumps 1,000,000 USD into the economy in the form of payments to unemployed people. What happens to the money? Well, they probably pay at least 15% in taxes and they spend the other 85%. then what happens? The 850,000 that they spend went to became income to the people who received the funds. So they got 850,000 and paid 15% tax and in turn spent 722,500 back into the economy. Nobody saves shit. Everybody spends every penny that they get. Then the people that got the 722,500 pay their tax and spend 624,125 back into the economy. This process keeps up until the last guy gets a dollar and buys some bubble gum.

So as the process continues, the whole amount of money spent because of the 1 mil became maybe 5 million injected into the economy. In that case, the taxes would amount to about 750,000, nearly what they put in.
I'm not a mathmatician so you're just going to have to settle for my approximations. so in this case, we have a multiplier of 5.
But do you see the concept? The govt will get back nearly all or even possibly more than they spent in taxes. They money that's injected into the economy may be the money necessary for you to keep your job making whatever it is that you do. Ideally, we want these people to be come employed in the near future and start making stuff or doing stuff we want, but we DO NOT WANT THEM TO STOP GETTING MONEY AND SPENDING IT. It is not in our best interest to see the economy collapse because of this.

Those of you who seem gleeful about employment benefits running out are woefully ignorant and chicken shit. Why Chicken Shit? Because you can't stand to see other people getting money for free while you're working your ass off. Well, enlightened self-interest would dictate that you shut the fuck up and let it go.


There you go GLP. Enlightenment for the masses. Unemployment benefits are put in place to keep the economy on a smoother pace, to smooth out the recessions and depressions.\

You're welcome.