obviously, Maxine Waters has no clue how the economy works.
Rep. Maxine Waters, D-Calif., said Sunday U.S. President Barack Obama should propose a "bold" jobs program costing $1 trillion or more.it's all well and good to give money to people... and yes, they will spend it (rather than invest it)... that money fuels business... businesses will hire people and invest profits... taxes will be paid... etc., etc., etc.
"The president must be bold. I agree that he must have a jobs program, must create jobs," Waters said on NBC's "Meet the Press."
"I'm talking about a program of $1 trillion or more. We've got to put Americans to work. That's the only way to revitalize this economy. When people work and they earn money, they spend that money, and that is what gets the economy up and going."
but at some point, you run out of spending other people's money... the federal government cannot spur the economy by funding individuals... 90% of the population has few choices in spending "bailout" money... most of us are already too far in debt to take advantage of "free" money... we have spent ourselves into a hole, so the first thing we'll do is pay off debt (so we can go back into debt tomorrow)... give us a little, we'll pay off bills... give us a lot, we'll pay off cars and mortgages... give us a lot more, we'll pay off everything... only then will many of us put money back into the economy... only when we have "disposable" income will we spur the economy.
but, lets say we spend a trillion dollars on "stimulus"... if we take the last job-creating stimulus as an example, it created one job for every $278,000 spent... that means, if we spend 1 TRILLION dollars, we'll create (or save) 3.5 million jobs... that will (hypothetically) drop our unemployment from 9.6% to 7.4%... however, when we look back at the unemployment rate after the previous stimulus, it went from 6.0% to 9.6%... on the face of it, this didn't seem work, did it?
Insanity is doing the same thing over and over again but expecting different results. - Rita Mae Brown, Sudden Death (Bantam Books, New York, 1983)
if Ms. Brown is to be believed, Rep. Waters is truly insane.
POLITICO: Waters wants 'bold' jobs plan from Obama - POLITICO Live - Waters wants 'bold' jobs plan from Obama