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

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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.

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And it doesn't. Desire does not equal demand. Desire plus means equals demand.

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

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We are talking about basic necessities, and the desire/need for those is always there.

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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.

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It's not an exchange of value, it's an exchange of money. An economy only works if money keeps flowing, creating value in the process.

Look, I am as against handouts as you are, but I'm simply trying to explain the principle behind the idea that extending benefits creates jobs. And the principle is sound and it works both in theory and in practice. Obviously, there are limits to the effectiveness and at a point it becomes detrimental, but that is a different argument to make and one that I'm not going to participate in.