How to stimulate the economy--NOT

"In January 2008, the United States economy employed 138.1 million people and the unemployment rate stood at 4.9%. But the powers in Washington thought deficit spending could boost a slowing economy, so Speaker Nancy Pelosi (D-CA) passed and President George Bush signed a $168 billion economic stimulus bill made up of temporary tax cuts and increased mortgage grantees for Fannie Mae and Freddie Mac.

By January 2009 that economic stimulus worked so well that the U.S. economy had lost 3.5 million jobs and the unemployment rate stood at 7.6%. Again the powers in Washington thought deficit spending was the answer, so Speaker Nancy Pelosi and newly minted President Barack Obama dialed up $787 billion in temporary tax cuts and permanent spending increases. Ten months later, the U.S. economy has now shed another 3.59 million jobs and the unemployment rate stand at 10%."

And since none of that worked, they'll make a third stab at it. They're rejoicing that job loss fell--and yes, that's better than the alternative, but the unemployment rate fell from 10.2 to 10 percent in part because 98,000 workers left the labor force. The bigger problem is no job creation. What employers, when faced with the uncertainty and higher taxes that the health "reform" is promising ("tax" used 183 times) wants to call back workers or expand? The only places in the USA not hard hit are the suburbs of Washington--Virginia, Maryland, etc.--where workers are needed to fill the posts required to distribute your tax money and buy bottled water for congressional staffers. In Ohio most of the "recovery" money has gone to Democrat districts. So we'll just get more of the same ineffective, high cost nonsense.

[The Foundry and Morning Bell, Dec. 4, 2009]