Valerie Jarrett, a senior aide to President Obama, argued the other day that unemployment benefits “stimulate the economy.” The Romney campaign apparently didn’t care for the remark.
“First they told us that borrowing $1 trillion from China was supposed to stimulate the economy,” a campaign spokesperson said. “Then just yesterday, one of President Obama’s top advisors said that unemployment stimulates the economy. That’s like saying an iceberg stimulated the Titanic. Only in White House fantasy world do debt, unemployment and higher taxes stimulate the economy.”
It’s unsettling how easily confused Team Romney gets on these issues. The economy is supposed to be the former governor’s signature issue.
For one thing, the stimulus (a) didn’t cost $1 trillion; (b) wasn’t financed by China; and (c) really did stimulate the economy. For another, Jarrett didn’t say “unemployment stimulates the economy”; she said unemployment benefits stimulate the economy.
And third, whether the Romney campaign likes it or not, Jarrett was right. Paul Krugman had a column on this a while back that the former governor might find helpful.









