Thursday, August 7, 2014

This is why even rich people...

...should be in favor of a safety net: it's good for the economy.

According to a new study, between 2008 and 2012 unemployment insurance alone prevented about 1.4 million foreclosures. From Wonkblog (my emphasis):

...the housing crisis begat an unemployment crisis that begat an even worse housing crisis. Only the government could stop this vicious circle. It had to help the unemployed so they could stay in their homes. And it had to stabilize housing — along with the rest of the economy —so more people wouldn't lose their jobs.

1 comment:

Ed Crotty said...

Didn't we learn this in the '30s? Shouldn't we also have learned that a little stimulus can help a little but a BIG stimulus ( WWII ) can remake the whole economy. It is insane that we have to keep defending Keynesian economics because it has been PROVEN to work, time and time again. But we are always forced to consider the "Moral Hazard" that a poor person might get something they don't "deserve".

Why do self-identified "Christian" people act so much in the opposite of actual Christin teaching?