At Commentary, Jennifer Rubin writes:
The Democrats are getting nervous about the unemployment numbers. No, the stimulus plan didn’t stimulate the jobs, as it promised. Remember the 2.5 — or was it 3 or 4? — million jobs to be saved or created? No one can argue with a straight face (other than Joe Biden, that is) that it was a success.
But sure enough, there’s talk of a second stimulus plan. It’s just important to get the labeling right, Roll Call tells us:
Just don’t call the as-yet-unwritten new proposal “stimulus,” they insist. “The Speaker never used the word stimulus,” said Speaker Nancy Pelosi’s spokesman, Nadeam Elshami, moments after the California Democrat listed a laundry list of stimulus items under consideration last week, including an extension of unemployment benefits. Not that they have a name yet for what they want to call the package. “It’s an ongoing effort to build on the recovery package and other measures we passed this year to grow the economy and create jobs after years of mismanagement by Republicans,” Elshami insisted later. “It’s about jobs.”
They think calling a government boondoggle by another name and going to the well of Bush-bashing will do the trick. But that probably won’t work. As Roll Call notes, this posturing has merely “opened the door to a fresh flood of criticism from Republicans who have declared the earlier $787 billion stimulus package a failure and set off a race to the trough by every K Street lobbyist worth his or her salt.” Understandably, Republican lawmakers are having a field day, and they are more than content not only to point out the failure of the original stimulus but to focus on the mound of debt as well.
The Democrats could, of course, rip up the old stimulus and redirect that money to more useful endeavors. The F-22 production line, for example, if reactivated would save 95,000 jobs right off the bat. Or they could forget the junk pile of liberal programs and instead enact some across-the-board tax relief for employers. Better yet: put the kabosh on any new taxes — including all those in the health-care tax-a-thon.
Well, none of that is happening while the Democrats are in charge. And that, one can safely predict, will be what the 2010 elections are all about.
Meanwhile, Glenn Reynolds spots another rube taken in by last year’s hollow rhetoric, now (hopefully) a bit wiser:
Honeywell Chief Executive David Cote, a Republican who supported Mr. Obama in the election, says he was taken aback by the president’s rhetoric on the tax issue. “You can’t love jobs and hate those who create them,” he says.
Indeed.™










Why Spending Stimulus Plans Fail
The money isn’t free. It is taken from the people who plan and invest in productive organizations. This destroys jobs and lowers everyone’s income. The money is then given to government agencies who increase budgets. This is a form of government consumption. Investment is turned into consumption, and job expansion is killed.
The economy improves under light regulation and low taxes, because that encourages people to work and invest for their own, greater prosperity. Obama’s administration is threatening heavy regulation and higher taxes, dissuading business managers and investors from investing more. This is having a bigger, more negative effect than even the so-called stimulus transfer.
I have heard the argument that people spend their money better than the government does. This incorrectly concedes that the money already belongs to the government, and the question is only about who should spend it for the good of us all. That attitude in itself kills production and employment.
People deserve the money they earn; it is their own production. Some taxes are a necessary evil to provide for the common good, not a missed opportunity to build a utopia, or a way to take from people who have earned money and give it to people who haven’t earned it.
The government intends to interfere in people’s busineses and to take more in taxes. This immediately sends a signal to stop expanding and investing in businesses. Why work hard, only to have the government come by and say “you have a lot, give me some, and I’ll be back tomorrow for more”.
Socialism works. Russia is an example. We can learn a lot from what runaway government has done for that country. It is a lesson in what not to do.
A Tested Stimulus Plan
The economic crisis is the result of a giant six year stimulus provided by housing loans. As you can tell, it worked for a while and ended in disaster. What will the current so called stimulus plans produce when the money runs out? We know the answer: an economy like the current one, but somewhat worse.
Stimulus Does Not Cure a Recession
Jobs change when people change what they want to buy or can afford. It is possible to keep people at their money-losing jobs for a bit longer, only by wasting the savings that should be financing a real recovery.