On the unemployment situation and food stamps, Nancy Pelosi said this:
“It is the biggest bang for the buck when you do food stamps and unemployment insurance. The biggest bang for the buck,” she said
Pelosi said that for every dollar a person receives in food stamps, $1.79 is put back into the economy.
Apparently, according to the leading Democrat in Congress, if every single American lost their job, and went on unemployment and food stamps, our economy would nearly double overnight, obviously resulting in an immediate recovery.
Which is to say, Obama, Pelosi and Reid should destroy even MORE jobs so that even MORE Americans are on unemployment and food stamps. The more Americans getting food stamps, the bigger the bang. And if Democrats get the chance to destroy a few more million jobs, all those millions of people receiving unemployment and food stamps will have our economy raring back in no time due to that zany multiplier effect.
But the problem is, Nancy Pelosi, the Obama administration and the entire Democrat Party are abject fools. That big bang Nancy thinks she hears is our economy IMPLODING. As an IBD article points out, even EUROPE now realizes this sort of government spending is counter-productive:
This is the big reason why they’ve made such a mess of the economy. They actually believe the more the government spends, the better off we all are — contrary to all evidence that suggests, in fact, cutting spending would push up economic growth.
The mistakes began as soon as the new administration entered office. Then, two of its main economic advisers, Christina Romer and Jared Bernstein, estimated a multiplier effect from government spending of up to 1.55. That is, for every $1 the government spent, the economy would grow by as much as $1.55.
But a study by the International Monetary Fund debunks the idea. As noted by Stanford University economist John Taylor, the IMF study shows a multiplier of just 0.70 — that is, for every $1 the government spends, the economy sees just 70 cents in activity.
“This means that government spending crowds out other components of GDP (investment, consumption, net exports) immediately and by a large amount,” wrote Taylor (see chart).
In short, two years of massive government bailouts and the projected surge in spending-driven deficits of as much as $12 trillion over the next decade have done nothing to make our economy healthier.
Instead, we are 3.8 million jobs in the red since President Obama took over. Unemployment remains stubbornly close to 10%, even as the White House touts its “Recovery Summer.”
The International Monetary Fund – which has been a great friend of liberals – utterly contradicts the ridiculous multiplier effect cited by the White House and now by Nancy Pelosi. A picture is worth a thousand words, in this case:
Democrats are mocking Christine O’Donnell as a witch; but Nancy Pelosi is the real witch, in that she believes she can magically transform a dollar into a dollar seventy-nine – just by blessing it with bureaucratic magic.
And note: “Democrats,” as in Demonic Bureaucrats.
Newt Gingrich rightly wants to contrast Democrats and Republicans as the difference between “the Democratic party of food stamps and the Republican party of paychecks.” And, as incredible as it might seem, Nancy Pelosi basically agreed with Newt Gingrich.
Tags: $1.79, biggest bang for the buck, Christine O'Donnell, Democratic party of food stamps, food stamps, for every dollar a person receives in food stamps, International Monetary Fund, multiplier effect, Nancy Pelosi, Newt Gingrich, Pelosi, put back into the economy, Republican party of paychecks, unemployment, unemployment insurance, witch
Start Thinking Right 
October 18, 2010 at 5:50 pm
I support Nancy Pelosi and the Democrats.
The Dems have gotten us out of economic messes before, and they will do so this time.
Remember that it was the Republican Party that put us in this mess in the first place.
The GOP sat there while the economy was sinking like Bush sat in a chair reading an upside down book during 9/11.
The Democrats are trying to fix things, but the fact is that it will take more than two years to get us back on track.
The Republicans point fingers and say the Dems are doing nothing or not enough, but they will not admit that this depression/recession is their fault.
The corrupt Republicans stole, lied, laughed and got rich while America suffered.
Now they want to get back in power.
NO WAY!
We will not forget the Bush years and the GOP buddy system.
Think when you vote and don’t panic like the Republicans want you to do.
Continue taking this country back from them.
Your freedom and future are on the line.
Vote Democrat.
I am,
George Vreeland Hill
October 18, 2010 at 8:57 pm
George,
How, precisely, did “the Republican Party put us in this mess in the first place”? Beyond your demagogic assertion, do you even have an actual reason?
You say, “The GOP sat there while the economy was sinking like Bush sat in a chair reading an upside down book during 9/11.” First of all, are you stupid? You DO know that after 2006 it was DEMOCRATS who were in control of both the House and the Senate, don’t you? How is it true to say the Republicans sat there, when it was the DEMOCRATS who were in control? Particularly given the fact that Republicans TRIED to reform and regulate Fannie Mae and Freddie Mac – which was the source of the disaster – and the fact that it was Democrats who stopped that reform and regulation???
As for the “book upside down” thing, here’s “proof” that Obama is so dumb that he doesn’t even know which end of the phone to talk on!!!
Learn to think before you vote, you donkey’s ass.
Have you ever heard of Photoshop, you dumbass? Bush was READING a book to those children when he was told of the 9/11 attacks. A children’s book, for the sake of Pete! Just what kind of a moron do you have to be to think that a man who became President of the United States, and who received his Masters in Business Administration from Harvard University, somehow doesn’t know how to read??? Which is another way of asking the question, “Just what kind of a fool are you?”
You say the Republicans point fingers. My GAWD!!! What the hell are the Democrats doing, and what the hell have they been doing for YEARS??? Are you truly such a brain-dead ideologue that you don’t see how retarded you sound???
This was your Democrat Party in action:
February 25, 2011 at 9:25 am
I should have left my computer like I intended- I saw all this as well- (bit of a political junkie)
NANCY PELOSI- actually takes my pride in woman’s advances in politics to a
NEW LOW !!!!!!!!!!!!!!!!!!!
February 25, 2011 at 2:03 pm
The greatest conservatives today are women, I think one can reasonably argue. Sarah Palin and Michelle Bachmann (or, for that matter, Michelle Malkin and Ann Coulter).
The worst liberals today are woman, I think one can also reasonably argue. And unfortunately, women are far more likely to be liberal than conservative – although that stat seems to be changing as they begin to realize that the security liberalism promises isn’t very “secure.”
You look at who does all the volunteering today, and, I am ashamed to say, it is women.
I’m glad women are stepping up; but dang let’s see conservative men rise to the challenge.