-By Dan Scott
Most of what we hear from the MSM and politicians is our current economic crisis is national in scope requiring a massive government spending spree to pump prime the economy. The proposed plan is national in scope and diverse in its approach to doling out the cash to various pet liberal causes. All of this is under the guise that we need to create or save 3 to 4 million jobs. So which is it? Create or save them? The premise of the claim is to save the jobs lost and create additional jobs to employ all the high school and college graduates who need them as well. That’s right, not only do we need to re-employ the over 2 million plus people who lost their jobs in the last 12 months, come May and June 2009 we have another 3 to 4 million young adults needing jobs on top of this number. Expect the unemployment rate to hit 10% by July. We are told government is the only entity that can do this.
Not to belabor my previous criticisms of the Democrat led plan, government policy was the cause of the current debacle and reversing failed government policy is the answer to the situation. Claiming that a massive deficit spending increase in liberal agenda items is economic stimulus is like claiming a drunk person should double down on the amount of alcohol consumed to make them sober. The liberal agenda is to the economy as drinking is to sobriety.
Here’s something to think about, how is it over
80 metropolitan areas have unemployment under 5% and over 200 of the 369 metro areas surveyed are under the national average? What are they (under 5%) doing right that El Centro CA with over 23% unemployment is doing wrong?
Here is the information graphically, notice anything?
Here is a graphic display of mortgage delinquencies, notice anything?
Here is a report with tables and graphics ranking the states by total tax burden, notice anything?
Here is a graphic showing the cost of gasoline by state and county, notice anything?
Here is the list of states with their gasoline and diesel tax burden, notice anything?
You would think someone would take notice and ask what are we doing wrong and what are they doing right. What is Wyoming with 3.2% unemployment doing right that California with 8.4% is doing wrong? But we all know the answer don’t we? Taking responsibility for screwing up the economy is not high on the agenda of self promoting politicians who convince people of their victim hood. Which brings me to the next question, given that high unemployment is localized wouldn’t it make sense to provide a targeted real stimulus plan versus a multi-year scattershot trillion dollar pork barrel budget buster?
We need to ask the question again regarding individual choice. Why should an unemployed person who rents stay in El Centro, CA with over 23% unemployment and not move to New Mexico whose unemployment rate is 4.3%?
Small businesses employ a majority of workers (49,993,000) in this country followed closely by medium sized businesses (44,306,000) and in distant last place large companies (18,861,000). By the way, between federal, state and local governments there are some 22,514,000 employed all of them being supported by taxes (both overt and stealth) on the other 113 million+ working in private industry. A small business is characterized as employing from 1 to 49, medium sized 50 to 499 and large as being 500 and greater. Why does it seem that most of the “stimulus” so far is geared to large businesses, government infrastructure projects and government benefits (handouts). Would that be because much of the Democrat Party’s financial contributions come from big business, unions and various special interest groups not represented by small and medium sized businesses?
It should come as no surprise that small and medium sized businesses in February 2008 began a consistent shedding of jobs when the price of gasoline stayed above $3.00/gallon with no relief in sight. Now that the price of gas is down below $2.00/gallon what stops them from rehiring? Could it be that most people who own small and medium sized businesses took Barack Obama seriously about socking it to them with his spread the wealth plan? Why should they make investments in the future when they will be penalized? You remember Joe (Sam) the Plumber? Could it be Barack Obama’s plan is directly targeted against the very group who normally don’t financially contribute large sums to the Democrat Party? Sounds like Chicago politics to me, this is the new politics of Barack Obama, rewarding those who vote for and financially support his re-election efforts. We shouldn’t be surprised at this since supposedly oblivious Barack Obama championed Governor Blagojevich’s election, Blagojevich saw nothing wrong with his actions and in fact claims what he did was nothing different than the rest of the Democrat Party.
———-
Dan Scott calls himself a “Member of the Global Capitalist Cabal preaching Capitalism and personal responsibility as the economic solution to world poverty.” He is also a member of the 14th Amendment Society — victimhood is a liberal code word for denying the civil rights of others. He is also a proud member of the Global Warming Denier Cabal, insisting that facts not agendas determine the truth.
Dan can be seen on the web at http://www.geocities.com/fightbigotry2002/ as well as http://www.geocities.com/dscott8186/saidwebpage.htm, And can be reached for comments at dscott8186@yahoo.com.
Fair Use: This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. I am making such material available in my efforts to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. I believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research, educational, or satirical purposes. If you wish to use copyrighted material from this site/blog for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.
Big companies will try to figure out how FEW they can hire while still getting the money (i.e., work existing people harder first. Small biz employees tend to already be pushed to the limit, so even if they wanted to try that strategy, they usually can’t.
Bigger point is that the stimulus doesn’t even get into the economy for quite a while. Tax cuts do, and when done right, they favorably affect expectations and confidence and bring the economy back much faster.
That’s because unlike the rogues gallery of special interest groups such as SEIU, La Raza, ACORN, etc., that helped lead the Democrats to victory, small businesses have no favor bank or political clout with the new administration but only the hostility from the infamous Joe the Plumber exchange. In fact, small business begins the new administration in the dog house, with their objection to the American-dream killing tax hikes already derided as “making a virtue of selfishness”.
http://pajamasmedia.com/blog/small-business-to-get-short-shrift-from-obama-administration/
Excellent article on Hot Air: http://hotair.com/archives/2009/02/08/the-real-problem-in-the-unemployment-figures/
It indirectly supports my position that unemployment is heading toward 10% due to demographics and employers not hiring.
The proper salve for a lack of job creation would be an infusion of capital into the markets. The failure of businesses normally creates openings for small start-ups to take their place, or for innovators to find new solutions to new problems and bring them to market. The Obama administration should encourage capital to come to market by lowering the risk cost through cuts in the capital-gains tax rates, or eliminating them entirely, for the next four years.
That will create jobs and expand opportunity, and would balance the layoffs of firms that had shaky business models even before the latest financial crisis. In fact, that’s why the 2000-1 recession managed to absorb the dot-com bubble collapse as well as the 9/11 attack collapse so well. The Bush administration lowered taxes and kept capital working to create jobs. Instead, the Obama administration wants to re-create the WPA, digging ditches just to refill them later, and paying for it by eventually seizing the capital that could have created real, long-term employment.
Obama could learn something from George Bush. I doubt he’ll stop screeching hysterically long enough to figure it out.