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Tell Your Congress What Makes Financial Sense

November 30, 2010

The Congress Republicans are opposing extending unemployment benefits for the nearly 10% of the work force that doesn’t have a job. They say it’s too expensive to support the 2 million people whose benefits expire. They also oppose ending the 2003 tax cuts for those who make more than $250,000, the richest 2% of the country.

Unemployment payments extension will cost $60 billion if it lasts for an entire year. And it won’t last that long. The tax cuts for the rich will add $700 billion to the deficit over ten years. And the cuts will last that long.

The unemployment benefits will be spent in the economy as the money is needed for subsistence and that spending will save or create jobs. The rich will just invest their money in stocks and bonds or otherwise save it. They don’t need the money for subsistence and they won’t necessarily spend it.

It’s pretty simple math: On the one hand there’s $60 billion to be spent in the economy and on the other hand is $700 billion that won’t be.

Which makes financial sense? Let your Congressfolks know that you know.

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