The View From 1776
Tuesday, July 07, 2009
Government Action Causes Unemployment
The more the President flails around with barrages of new programs, taxes, mandates, and business takeovers, the warier businessmen become about hiring new workers.
Hence the accelerating level of unemployment, now at 9.5%, the highest level in more than 25 years. That picture is even worse when allowing for the decline in the average work week to 33 hours.
The administration continues to use the crutch of blaming President Bush for everything that goes wrong. But it can’t escape the fact that its first official economic act was the $787 billion stimulus package, which was by many multiples the largest such program in history. When it was enacted, the unemployment level was approximately half the present 9.5%.
The standard liberal-progressive-socialist rationalization for failure was provided, in advance, by the New York Times’s left-wing propagandist Paul Krugman: the government isn’t spending enough. Mr. Krugman, in his February 12, 2009, column (shortly after passage of the stimulus bill), wrote:
For while Mr. Obama got more or less what he asked for, he almost certainly didn