The View From 1776
Sunday, September 18, 2011
Obama And Bernanke Aim At The Wrong Target
The U.S. economy is stalled, not because of insufficient consumer and government spending, but because of much depressed investment by private businesses.
Economist Robert Higgs lays out the numbers from the Obama administration’s own government bureau. Consumer expenditures and government spending are well above their initial recession levels. Obama’s mis-named jobs plan (really just a re-run of the unsuccessful $800 billion 2009 stimulus plan) obviously is aimed at the wrong economic target, however effective a use of taxpayers’ money it may prove to be to re-elect Obama.
Our intractable unemployment problem results from extremely depressed levels of private business investment. Governments don’t create productive jobs. The only source of productive job creation is private business investment. And such business investment remains depressed because of Obama’s socialistic animus against capitalism and private business.