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Tell that to the people who went from unemployed to employed.....

Posted by: BUY BONDS 19 (a.k.a mrbinns) on Nov 06, 13:15 in response to websch01ar's post It is a common fallacy that emergency expenses help the...

Falacious article ?

So lets see....Homeowner has a losss, covered by insurance.  Insurance pays the homeowner to rebuild, to buy new carpets, tvs, clothes.  Maybe some of the money comes from FEMA or some other govt source.

All of this money spent helps the job market in the immediate short run.  Maybe the money would be spent later.  But for now, there are jobs created.  Where is the fallacy?

Yes, there were businesses and homes destroyed, without insurance, and there will be some jobs lost.    Many businesses will get help to rebuild, either loans or grants, and the jobs come back. 

I am not saying "Win, Win" only that a lot of unemployed will find work in the rebuilding effort.  No matter who wins.

 





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