By February 24, 2012 Read More →

White House Senior Advisor Valerie Jarrett Says Unemployment Checks “Stimulate” the Economy (Ask Her About Illinois’ Grove Parc Plaza)

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Unemployment checks stimulate the economy!

These people are responsible for America’s economic policy?  No wonder we’re in such trouble!  Here’s what Stanford graduate (sounds like 1% territory) and Director of the Office of Intergovernmental Relations and Public Liaison under President Obama said:

And so we need to make sure that we continue to support that important safety net. It not only is good for the family, but it’s good for the economy. People who receive that unemployment check go out and spend it and help stimulate the economy, so that’s healthy as well.

If robbing Peter (the taxpayer) to pay Paul (the unemployment recipient) means the economy is “stimulated” then she’s right.  People getting unemployment are not contributing anything they are only taking.  And that’s okay for a short period of time because bad luck can befall anybody.

But three years of bad luck?

To know somebody’s future vision you only need look at their past.  In Ms. Jarrett’s case she was the CEO of Habitat Company which managed the Grove Parc Plaza located in former Senator Barack Obama’s district.

According to an outside study (nobody in Illinois would touch the subject), the 504 government subsidized units were in deplorable condition (with 99 remaining unoccupied due to hazards).  According to the report on Boston.com:

Mice scamper through the halls. Battered mailboxes hang open. Sewage backs up into kitchen sinks. In 2006, federal inspectors graded the condition of the complex an 11 on a 100-point scale – a score so bad the buildings now face demolition.

Grove Parc has become a symbol for some in Chicago of the broader failures of giving public subsidies to private companies to build and manage affordable housing – an approach strongly backed by Obama as the best replacement for public housing.

As a state senator, the presumptive Democratic presidential nominee coauthored an Illinois law creating a new pool of tax credits for developers. As a US senator, he pressed for increased federal subsidies. And as a presidential candidate, he has campaigned on a promise to create an Affordable Housing Trust Fund that could give developers an estimated $500 million a year.

Scenic Grove Parc... the proving grounds for State Senator Barack Obama's housing ideas.

Regarding Jarret (and that name from the past rarely repeated by the press Tony Rezko):

Campaign finance records show that six prominent developers – including Jarrett, Davis, and Rezko – collectively contributed more than $175,000 to Obama’s campaigns over the last decade and raised hundreds of thousands more from other donors.

So a former CEO of a company that acted as a slumlord, who raised a massive amount of money for the man she now works for, President Obama, is telling us that unemployment checks stimulate the economy?

And who is running the country?

 

 

Posted in: Economics, Featured

7 Comments on "White House Senior Advisor Valerie Jarrett Says Unemployment Checks “Stimulate” the Economy (Ask Her About Illinois’ Grove Parc Plaza)"

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  1. Steve Dennis says:

    You summed it up in your second sentence, no wonder we are in such trouble!
    Steve Dennis recently posted..Barack Obama promises to double down on his green energy failures

  2. LD Jackson says:

    I don’t normally like to leave one line remarks as comments, but I can’t help myself this time.

    THIS LADY IS AN IDIOT!
    LD Jackson recently posted..Obama’s Corporate Tax Proposal – Another Lesson of Cain’s Pestilence

  3. Jack Camwell says:

    Technically it does stimulate the economy, but just not in the way that they had hoped.

    Of course, if there’s a bunch of government money going into the economy it will show signs of improvement in terms of $$. But when that money stops, we realize that the money didn’t really do anything but keep things stable for a while.

    These people are idiots because they think that money is both the problem and the solution. What they’re failing to realize is that there are deeper issues that have led to this recession, and will continue to stunt our recovery so long as they’re not resolved.

    I’m not much of an economist, but should pumping money into a system be considered “economic policy?” When I go out and buy something, should my decision to purchase something be considered my personal economic “policy”?

    America’s problem right now is that society wants to ignore the real underlying issues that are making everything awful, because actually making fundamental changes to the way we do things is far more difficult and painful than just finding a quick fix.
    Jack Camwell recently posted..Why Competition Won’t Work in Education

  4. Dean says:

    They are, quite simply, economic illiterates.

    I have heard this line of reasoning now from Jarrett, Jay Carney, Nancy Pelosi and the Secretary of Agriculture (which oversees the food stamp program).

    Team O can’t stop patting themselves on the back with respect to how many people they distribute food stamps and unemployment checks to. (Why do people get all wee-wee’d up when he is called the food stamp President? The man is owning it.)

    It never occurs to any of these people that the big idea is to get people OFF of food stamps.

    Is it any wonder then that we are in the horrible economic state we are.
    Dean recently posted..Things we all know but choose to ignore anyway

  5. KP says:

    Frightening!

  6. Blogging Patriot says:

    The number of Americans living in communities of extreme poverty (annual income of $22,314 for a family of four) soared by one-third between 2000 and 2006. Compared to 2000, residents of extreme-poverty neighborhoods were more likely to be white, native-born, high school or college graduates, homeowners, and not receiving public assistance. The numbers rose twice as fast in suburbs as in cities. Poor residents in extreme-poverty tracts increased by 41 percent in the suburbs.

    This reflects the damaging policies of the Republican party during their custody of the federal government, massive poverty to go along with massive debt. But it also lays to rest that “the poor” are living off the government. These were working middle class Americans.

    Mark Zandi, the Chief Economist for Moody’s, testified that the food-stamp multiplier in 2009 was 1.73 or about 6 times more powerful than a dollar spent extending the Bush tax cuts (multiplier = 0.29).

    In sum, for every $100 billion spent on food stamps, the economy grows a robust $173 billion. For every $100 billion spent on the Bush tax cuts, the economy grows a paltry $29 billion. And for every $100 billion spent on tax cuts for the rich, the Congressional Budget Office estimates the economy could grow as little as $10 billion.

    More jobs were lost in the recession of 2007-09 than in the previous four recessions combined. Bush and the Republican Congress showed the worst track record for job creation since the government began keeping records. That is the legacy from the Republicans we should remember.