Why New Jobs Bill? Last Stimulus Is NOT Working

Ok folks lets get real. We hear how the stimulus has saved 2 million jobs and yet once again the latest jobs report says we just lost another 500 thousand jobs. What a bunch of crap. If you look at the big stimulus bill you will find a bunch on non job producing spending period. High speed internet for rural areas does not create permanent jobs. Studies and research for green technology does not create jobs. I have detailed many such items in previous posts. Government spending does not create jobs. Government spending on these levels only creates deficits and debt.
I have had conversations with some of you about the benefits of these policies. Many of you tell me that by putting money in the hands of people through extending unemployment benefits puts money into the economy. It does and it helps the unemployed for a short time. In addition one reader provided a link to an analysis by Mark Zandi Chief Economist at Moody’s Economy.com, published in Jan of 2009. I have read this report and now a year later I still think he got it wrong. Here was one prediction that I think will not occur “The House stimulus plan will not reverse the current recession, but it will provide a vital boost to the flagging economy. With the stimulus, there will be 4 million more jobs and the jobless rate will be more than 2 percentage points lower by the end of 2010 than without any fiscal stimulus. Without stimulus, unemployment will rise well into the double digits by this time next year, and the economy will not return to full employment until 2014.”
The unemployment rate is growing and certainly not be a full 2 percentage points lower by the end of the year. Full employment is not achievable by 2014 considering we need thousands of jobs a year just to employ new people entering the job market for the first time. He is right in his assessment that the plan will not reverse the current recession in fact I believe it will extend it long term. The more money the government borrows means less money available for private investment and growth. Private investment creates new business, expansion of existing business and JOBS.
We are faced with increasing taxes. The President has stated he gave 95% percent of us a tax cut. I won’t argue this but I will say that cut will be offset by the expiring of the Bush tax cuts next year. If you look at all the legislation you will find some tax relief to business but you will also find enormous tax increases in these bills. The state and federal governments are increasing consumption taxes. They are in the health care bill they are in the form of fees and taxes at the local and state levels. everything you buy or use seems to have a tax buried in it.
I know that if we continue to spend at this rate without regard to the long term consequences we will have an economic crisis worse that what we are experiencing currently. This government needs to look at the entire federal budget and reduce the cost of these programs. I don’t mind paying taxes, I don’t like paying taxes for social agenda items that we cannot sustain because the money is always spent on other things. Pay Go is a good idea but I don’t believe it will work without spending cuts, extreme spending cuts.

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