The money Obama spends he gets from taxing us now, or borrows and then taxes us later--so that's less spending and, hence, less jobs created by consumers.
Therefore these "stimulus" spending ideas for job creation are just a mirage. They only transfer jobs from the productive private sector to the inefficient public one.
As Henry Hazlitt wrote: ?For every public job created by [a] bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. . . . But there are other things that we do not see, because, alas, they have never been permitted to come into existence. They are the jobs destroyed by the $10 million taken from the taxpayers.?
Obama will get political credit for trying to "stimulate" the economy. Much the same way FDR did, but with much the same economic result: dismal.
FDR's Treasury secretary and close friend, Henry Morganthau, admitted these realities to Congressional Democrats (May 1939):
"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong ... somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises ... I say after eight years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!"
Japan tried it in the 80s, Europe went down this road and only recently turned that around. Various Latin American countries did it and now wised up...Fact is that goverment can't create new permanent jobs or capital investment.
The countries that tax more grow less, ones that tax less grow more.
"In Europe they call it socialism
In the US we call it welfare
Obama calls it change"
Today Obama introduced his economic team and when asked he was vague about how to pay for stimulus package beyond mentioning ?reforms? in Washington. And he refused to put a price tag on it. He talked much more about other stuff, so maybe Summers and Christy Romer have been talking him up some....
AP reports today:
"Obama stepped to the microphones one day after his aides urged the incoming Democratic-controlled Congress to work with unusual speed in passing an economic stimulus package. Some lawmakers have said a measure in the range of $700 billion over two years may be passed, in hopes of achieving the president-elect's goal of securing 2.5 million jobs."
That works out to $280,000 per job. A multiplier of 0.36, while the standard Keynesian models impute a multiplier closer to 2.0.....who knows whats going on besides confusion...
Therefore these "stimulus" spending ideas for job creation are just a mirage. They only transfer jobs from the productive private sector to the inefficient public one.
As Henry Hazlitt wrote: ?For every public job created by [a] bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. . . . But there are other things that we do not see, because, alas, they have never been permitted to come into existence. They are the jobs destroyed by the $10 million taken from the taxpayers.?
Obama will get political credit for trying to "stimulate" the economy. Much the same way FDR did, but with much the same economic result: dismal.
FDR's Treasury secretary and close friend, Henry Morganthau, admitted these realities to Congressional Democrats (May 1939):
"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong ... somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises ... I say after eight years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!"
Japan tried it in the 80s, Europe went down this road and only recently turned that around. Various Latin American countries did it and now wised up...Fact is that goverment can't create new permanent jobs or capital investment.
The countries that tax more grow less, ones that tax less grow more.
"In Europe they call it socialism
In the US we call it welfare
Obama calls it change"
Today Obama introduced his economic team and when asked he was vague about how to pay for stimulus package beyond mentioning ?reforms? in Washington. And he refused to put a price tag on it. He talked much more about other stuff, so maybe Summers and Christy Romer have been talking him up some....
AP reports today:
"Obama stepped to the microphones one day after his aides urged the incoming Democratic-controlled Congress to work with unusual speed in passing an economic stimulus package. Some lawmakers have said a measure in the range of $700 billion over two years may be passed, in hopes of achieving the president-elect's goal of securing 2.5 million jobs."
That works out to $280,000 per job. A multiplier of 0.36, while the standard Keynesian models impute a multiplier closer to 2.0.....who knows whats going on besides confusion...
