SamSaid!

THE UNEMPLOYMENT STIMULUS

31st December 2009

THE UNEMPLOYMENT STIMULUS

posted in General |

As the unemployment level rose beyond 7% back in 2008, the Obama administration identified it as a major priority for strong Federal action. Nobody looked upon high unemployment as being acceptable  — even on a short term basis. Hence, the Stimulus Bill  –  almost  a $800 Billion  — aimed at creating private sector jobs on projects dubbed “shovel ready”.  But instead of dropping, unemployment rose to more than 10% and has stayed there. By any math model, the Stimulus program has been a colossal failure  –  a total flop. In order to buttress their contentions of success, the numerical scorekeeping by Democrats has been downright laughable. Now the Prez wants to take the unspent money and spend it on do-gooder government projects.  No more discussions about shovel ready.

Virtually all economists agree that the real engine of job creation is in the small business private sector of the economy –  not the  public sector. All the private sector gets is more burdensome regulations and higher taxes.  We might ask Mr Obama, “Exactly what are you trying to fix??”

This assumes that he has some kind of plan. Not very clear to me.

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