Tuesday, January 12, 2010

$787 Billion in Stimulus, Zero Jobs “Created or Saved”

Are we surprised? You only have to read the history of the 1930s to know what was going to happen. It's one thing to sprinkle a little fairy dust to get people shopping again; it's another to pour billions into "shovel ready" projects that were already on the books, or into zip codes that don't exist. When does government "create" jobs, except when it increases unemployment and needs to add red tape and bureaucracy to its own rolls?
    "The problem with infrastructure spending as stimulus, and really government spending as stimulus, is that Congress does not have a vault of money waiting to be distributed. Every dollar Congress injects into the economy must first be taxed or borrowed out of the economy. No new spending power is created. It is merely redistributed from one group of people to another. Businesses are telling pollsters that among the biggest reasons they are not creating jobs is the prospect of new tax and regulatory burdens. A better solution to reduce unemployment is to simplify and reduce the barriers to business success." The Foundry Blog
And the sluggish economy is definitely linked to the Democrats' obsession with passing health care, no matter what, no matter how, no matter how many businesses go under, no matter when, but right now is what they prefer.
    "Congressional "reforms" of the American health delivery system have gone through dozens of versions. The separate bills passed by the House and Senate worry small businesses, in particular. They fear their labor costs will increase because of mandates to spend much more on health insurance for their employees. The resulting reluctance of small businesses to invest, expand and hire harms households as well, because it slows the creation of new jobs and the growth of labor incomes." WSJ Uncertainty and the slow recovery

1 comment:

clay barham said...

Are we upset with 10 to 17% unemployment? How do we reverse this condition? Most jobs are found in smaller business ventures, not industries traded on the stock exchange. Smaller businesses must be created en masse, as not all survive, assuming the environment is friendly to them. Today, government turns the environment unfriendly to entrepreneurial ventures, as taxation, regulations and bureaucratic discouragement runs rampant. Economic growth happened in America, as described in SAVE PEBBLE DROPPERS & PROSPERITY, seen on claysamerica.com. America has drifted into a way of life discouraging private innovation and creativity as politically incorrect, and this must change. Claysamerica.com