Unemployment benefits are a stimulus
Placerville
EDITOR: Stimulus Ñ Many are proposing that a tax cut would be a big stimulus to the economy. Reducing taxes will benefit those with good incomes.
How will they use it? Many will pay off bills, others will save it against hard times, some will spend it and some may even invest it to expand a business. A large potion will wind up in banks as savings or paying off credit cards.
A much better stimulus in my view is to expand or extend unemployment benefits. The folks who are unemployed need the money and most will spend it. When they do it stimulates business and helps maintain employment. A rule of thumb I learned was that for every dollar spent it generates several times more spending. The grocer can afford to maintain his car better. The mechanic buys new shoes, etc. It is time we view unemployment benefits as a stimulus, directed at the more needy in our society.
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