Jobless benefits adding $60 billion/yr to GDP - economist
Tuesday, January 07, 2014 - 01:41
The Economic Policy Institute's Josh Bivens says extending unemployment benefits since mid-2008 has kicked in $60B/yr to the U.S. economy and would add 310,000 jobs in 2014.
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Unemployment insurance benefits and their effect on the economy if it's not just sort of compassionate lifeline to be affected families. They -- -- really crucial service and propping up demand in the economy. I'm we have high unemployment today because there's not enough spending happening in the economy that is for the simple reason shortfall on demand. And unemployment insurance basically provides a nice buffer to keep demand for falling even further -- when people lose their jobs itself. Extension of the program for -- fourteen cost 25 million dollars which is the best estimate. Because there's a multiplier effect because that money goes to people who then run right out and spend it because they have almost no other sources of income. You know multiplier of about one and a half which means you're generated about 35 to forty billion dollars in extra economic activity. Because you're expanding benefits -- -- gonna support about 300000 jobs and the economy of the air. So that they're really. You know crucial problem. Just spending in aggregate demand in the US economy if you wanna get a sense of guilt over the entire Pakistan since the program began what is the best way to assess its impact on the economy. The best thing -- -- -- probably look at the annual average boost it's given in the economy over that year. And that number's about sixty billion dollars per year which is. The total. Extra economic activity generates maybe stop the labor market for the long term unemployed that it's twice as worse as it is bad. Any other kind of defended its programs that would be. Incredibly unprecedented drastic cut off this program while sort of situation facing a long term and -- -- it's really hard for me. Believe that's gonna happen but I do realize that it is a -- possibility.
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