The Most Pessimistic Pundit Ever

REal Clear Markets ^ | 07/06/2009 | Louis Woodhill

[fiscon1]

The June "Jobs" report issued by the Bureau of Labor Statistics (BLS) on July 2 caused shock and dismay. Payrolls declined by 467,000 jobs, more than the 345,000 lost in May, and much more than the 363,000 that economists had predicted. The only reason that the reported unemployment rate rose by only 0.1 percentage points (to 9.5%) in June was that many jobless people became discouraged and stopped looking for work.

[altair]

Change we can believe in!

[GOPJ]

"Stimulus" is based upon the superstition that government borrowing and spending creates "demand". In reality, it does no such thing. "Stimulus" is like trying to raise the level of the Hudson River by dipping out a bucket of water, walking five feet downstream, and pouring it back in. The only difference between the Bush and Obama plans is that Obama's bucket is bigger (and will create more debt). Ironically, the July 2 jobs report prompted calls from leftist economists for Obama to go back to the river with an even bigger bucket.

Krugman?

[griswold3]

I find his analysis dead on. Government is taking away capital from otherwise potential productive sectors. ‘Crowding out’ so to speak.