Federal Government Intrusion & Failed Economic Policy

Dave Funk ^ | 02/04/2010 | Dave Funk

[geniusbyosmosis]

The US Government has invested billions into “job creating” activities. They’ve done a terrible job and have by-far cost us more than the tiny gains we may have made. I’ve noticed everyone running for office has been talking about jobs and job creation and I have yet to see anyone offer actual solutions. I’ve tried to offer some valuable ideas which still hold true but we need to look at the root of the problem because if we don’t, even things like eliminating the corporate income tax won’t bring jobs back.

Those of you who I have met on the campaign trail have heard me talk about how our current Congressman has failed to learn one of the most glaring lessons of the New Deal as pointed out by economist Thomas Sowell in his recent book, The Housing Boom and Bust, and I quote; “is that massive and unpredictable government interventions in the economy creates uncertainties as to what government is going to do next- as well as uncertainties as to what the actual economic consequences of government policies will turn out to be.”

[geniusbyosmosis]

Economy WILL NOT recover until Consumer Confidence returns. That's why it'll be a long three years bc PBO somehow can't understand simple economics.

[cp124]

Crank up those credit cards and buy more Chinese crap and go in to debt. That is better than actually producing things here and employing people. We don’t need manufacturing, just more government, lawyers, bureaucrats and Wall Street crooks. Ya..that’s the ticket.

[MNJohnnie]

The dirty secret about these "Stimulus" plans are they aren't even stimulative under the failed notions of Keynesian economic theory.

All these jobs bills do is shell out money to state and local governments to paper over existing debt. They throw in some "tax credit" propaganda gimmicks to give themselves political cover but the bulk of this money will just be more money shelled out to Democrats activists groups.

All the Democrat Congress is doing is paying the Democrat party's Visa bill with the Taxpayers Master card.

Almost all of this "Jobs" money will be spent on, yet again, bailing out the debt for state and local governments. Very little of this will actually creates job, mostly it will merely papered over existing debt.

Once this "jobs" money runs out, State and Local Governments will still have to make the tough decisions on how to close those budget holes. They are just delaying, not fixing, the problem.

[updatedscreenname]

The problem as I see is that the population of consumers has the following issues:

1. unemployed/under employed people are poor consumers
deduct %20 from the consumer economy.
2. Young persons enter the consumer market who have student
loans to pay off are poor consumers.
deduct %5 from the consumer economy
3. Old people, the average age is growing are poor consumers.
deduct 2% each year as the average age increases
4. Over taxed persons are poor consumers. You can’t spend money the governments take from you.
deduct 15%

I’d say that the consumer economy is dead and it isn’t coming back for quite a while.

[Monorprise]

Unfortunately your right most of OUR Government “stimulus” money is basically going to pay for their reelection campaign.