President Obama Agrees With Nancy Pelosi: Extend Unemployment Benefits Again

President Obama has been given a choice.  Should he make the tough decision to cap unemployment benefits or continue to take more money American’s paychecks to give to people who are producing nothing.  This comes after Nancy Pelosi has said that unemployment benefits are the best way to stimulate the economy. It seems President Barack Obama agrees with Nancy Pelosi. He is calling for the extension of unemployment benefits.  There are reports that Obama will have “strong words” for Republicans on this topic.  Unfortunately, it is getting sad to watch this play out repeatedly. It is like watching an aging NBA power forward who has lost his leap and gained a paunch keep going back to those two or three post moves that everyone knows is coming.

When he speaks, President Obama will frame himself as compassionate because he is looking out for the unemployed.

“It’s time to do what’s right, not for the next election, but for the middle class,” – President Barack Obama (regarding extension of unemployment benefits again)

In reality, it is the president, congress and the Federal Reserve sticking fingers in cracks of the dam.  He will frame Republicans as uncaring suits who only favor tax breaks for the rich.  President Obama is inadvertently making the Republicans look sensible to the working class in comparison to the Democrat party.  This is unfortunate,as well, because over time it has been proven time and again that neither major party is sensible.

The intellectually lazy will see only one aspect of this policy. The people who are unfortunately out of work will be getting assistance. But what about the other side of the equation?   For every dollar given to a person out of work there is a dollar taken from someone who is working.  This money is confiscated from the taxpayer at the behest of the government.  Because the money is taken from those producing to those who are not, it reduces the wealth of our people & limits their ability to save, invest and produce.  This shrinks people’s capability to grow wealth and heal the economy. At some point it simply has to stop. It is the responsible thing to do.

“The state is that great fiction by which everyone tries to live at the expense of everyone else.” – Frederic Bastiat

It is simple. Most people who understand basic economics know that government is incapable of stimulating an economy. This is because when government does anything is has to be financed by taxes (taking American’s money and earnings), borrowing or printing the money.

During this down economy, children across America are learning that money does not grow on trees.  It is a shame that President Obama, Nancy Pelosi and the Federal Reserve can not say the same.