Like the U.S. Treasury, President Obama’s recent jobs proposal is bankrupt. Quite frankly, we weren’t counting on much. But that doesn’t mean we still weren’t disappointed by its burdensome emptiness.
The most remarkable thing about the President’s latest jobs creation plan has nothing to do with the actual substance – or lack thereof – included in the initiative. To the contrary, it’s the idea behind it that’s most noteworthy. In short, the President actually believes the government can use borrowed money to stimulate the economy.
If this were true, the trillions of dollars already spent would have produced an epic boom and job creation renaissance. By this point in the recovery unemployment would be down and opportunities would be abundant. Obviously, none of these things have taken place. Instead, according to a recent Bloomberg National Poll, only 9 percent of the population is confident the economy won’t slide back into recession.
The government, as we’ve seen, is extraordinarily capable of spending boat loads of borrowed money. Yet there’s no documented proof or empirical evidence that supports the notion that this can grow the economy. Moreover, simple logic shows it actually shrinks the economy. Continue reading
