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Tuesday, December 15th, 2009   10:15 am | Author: freethinker | Economy, Politics/Government, Work/Employment |
Tags: jobs, Republicans, Steele, unemployment
The Republicans and FOX (aren’t they the same thing?) have the answers for increasing jobs and helping the economy.
Cut the minimum wage and eliminate unemployment benefits.
FOX is pushing the “cut the minimum wage” as a solution to the job problem even though almost every study done on the correlation between minimum wage increases and job loses shows that it has no effect and in fact increasing the minimum wage has expanded jobs in some areas.
Onto the next Republican idea to spur the economy.
Yesterday Michael Steele, RNC chairman appearing on NBC suggested that in order to get banks lending to small businesses the unemployment tax should be cut.
“Well, I think, first off, he should recognize that banks aren’t going to lend money to people who can’t pay them back. … So there’s — there’s this whole cycle of not understanding exactly how the economy works with respect to small-business owners. Take that pressure off of them. Let’s — let’s eliminate the capital gains tax. Let’s reduce the unemployment tax.”
According to thinkprogress “The unemployment tax is a tax levied on employers in order to provide payments of unemployment compensation to workers who have lost their jobs. Unemployment insurance provides a vital lifeline to more than 10 million Americans currently looking for work in an environment where jobs are scarce. Moreover, the benefits also provide fiscal stimulus as they are almost certain to be spent and put back into the economy quickly. Economists estimate that one dollar put towards unemployment benefits contributes about $2.15 to economic growth.”
So much for Republican ideas.