The View From 1776
Friday, January 29, 2010
Obama’s 17% Unemployment Rate
That’s what we got for almost a trillion in stimulus spending.
Read today’s Washington Times editorial.
...the so-called stimulus actually has increased unemployment and delayed the recovery that economists were predicting last year. Mr. Obama’s claim that stimulus spending has saved jobs is based on bogus economics. Stephen Bronars, a labor economist at the University of Texas at Austin, pointed out to us that the stimulus doesn’t create new spending. “This money would have been spent someplace else [if the government hadn’t spent it],” he explained. The government is merely moving jobs from some firms to others and from some sectors to others, and in the process it causes extra temporary unemployment as workers are moved around.
Mr. Obama’s top-down manhandling of the economy is based on the assumption that government knows best, and that private businesses would be in better shape if they did what the bureaucracy tells them to do. Even the tax breaks the president proposes are flawed because they attempt to micromanage business decisions rather than lowering marginal tax rates for companies. This is because the president thinks he knows more about where companies should be investing than their executives.