The View From 1776
Saturday, October 08, 2011
Why Obama’s Jobs Plan Is A Wasteful Sham
The fatal flaw in Obama’s stimulus programs is the liberal-progressive, Keynesian assumption that government spending on make-work projects or on bolstering public employees’ labor unions has the same effectiveness as well assessed and skillfully executed investment expenditures by successful private businesses such as Apple, Inc. Government stimulus spending produces only a short-term blip in the economy, e.g., cash-for-clunkers, with no lasting improvement in employment or economic productivity.
Obama’s “jobs” plan is as short-sighted as the passenger who pays people to knock holes in the bottom of the boat they occupy in the middle of an ocean.
Government economic interventions always present negative tradeoffs. Interventions such as Obama’s stimulus and jobs programs necessarily deter private business investment, because of businessmen’s uncertainties about future interest rates, taxes, and regulations entailed by those interventions, as we have seen for the past two years. Read Job Creation: Jobs v Obama on the Mises website.