re: Obama: Extending Unemployment Benefits “Creates New Jobs”

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Hmmmm? I want (demand) a $2 million dollar house but I don't have the money for it. How is my demand there without the money?
[quote]Exactly.[

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But my demand for the $2 million dollar was there before the money. You were saying that demand (or at least I understood you to say) demand does not exist without money.

My assertion: demand exist---->get money---->buy house.

Your assertion: NO demand----->get money----->demand exist----->buy new goods


Now that I look at it, both assertions are valid. However as it pertains to the OP we need to look at the "get money" part of each assertion and ask this question: Was acquiring the money an exchange of newly created value or redistribution of existing value?


If it's redistribution of value then nothing has been added to the economy. In fact, it could be argued that resources were pulled from efforts to create value in order to fulfill the redistribution chain.