Do Unemployment Checks “Stimulate” The Economy?

Ms. Valerie Jarrett displays a legendary level of economic ignorance. Using a little bit of reductio ad absurdum to refute it …

We could unemploy say 80% of the labor force, send them all unemployment checks, and we would be even better off economically?! Only an fool would believe that. I think it’s part of the similar belief that we can consume our way to prosperity. But that view is mistaken. We become wealthier by production, not consumption.

[ UPDATE: Valerie Jarrett Says Unemployment ‘Stimulates’ Economy ]

The fact that this person is a senior adviser in the White House explains a great deal.

Related links:
Should We Extend Unemployment Benefits?
A Primer on Jobs and the Jobless – Walter Block
It’s Often The Exact Opposite …

Tags: economics, They Said It, Unemployment