The Democrats’ Jobs Hoax

Politicians love a crisis.  They exploit crises to expand government power.

pork-boondoggle-bucksThe current crisis was caused by Federal Reserve malfeasance, and government intervention in the mortgage and credit markets, bringing on the financial sector meltdown, and a rapid slowdown in economic activity, leading to mass layoffs.  The same politicians whose bumbling, political programs caused the crisis now shamelessly promote expanding their power to cure it.

In a January 8 speech President Obama said:

I have moved quickly to work with my economic team and leaders of both parties on an American Recovery Act that will immediately jumpstart job creation and long term growth.

Last week Obama kicked the hype machine into high gear:

A failure to act, and act now, will turn crisis into a catastrophe and guarantee …Millions more jobs will be lost.

Today, the House of Representatives passed, without a single Republican vote, the so-called “stimulus,” totaling $819 Billion, including $688 Billion in new Federal Spending.  When interest on all this borrowed money is added, the total tab will be over $1 Trillion.  So much for Obama’s claim to be working with “leaders of both parties.”

With the help of enthusiastic boosters in the national media Congressional Democrats and the Obama Administration are furiously selling the notion that growing unemployment can be “fixed” by government borrowing gargantuan amounts of money to spend on a grab bag of the usual, liberal priorities.

Today, David Obey, Chairman of the House Appropriations Committee said in response to Conservative objections:

Another week that we delay is another 100,000 more people unemployed.  I don’t think we want that on our consciences.

Apparently, Mr. Obey hopes to lead us to the preposterous conclusion that  Congress can prevent job losses next week by authorizing nearly a Trillion in new spending this week!

Are we to believe that Microsoft or Caterpillar or Pfizer will cancel the layoffs they just announced because the government will, over the next two years, pour $60 Billion extra into the public education bureaucracy, or spend $1 Billion on extra Census Bureau studies?

House Speaker Nancy Pelosi, arguably the second most powerful Democrat, behind President Obama, told Fox News:

We were — we will lose half a million jobs a month the longer we go without a package.

Does that mean Speaker Pelosi promises job losses will decline immediately, as a direct result of passing her “package?”

The Obama Administration’s sales pitch lacks what should be a minimum requirement:  Historical evidence or data to demonstrate that this spending will “create or save” any jobs.  This isn’t the first time government has passed a “stimulus” package.   There are numerous previous examples.

Why doesn’t the President or one of his hucksters call a press conference and show us the data proving those previous spending binges immediately prevented unemployment? Because there is no such data.  Previous “stimulus” packages did not bring about increased employment.  There is no track record of success.

On the other hand, there is a model for successful government action to turn around a recession and bring about increased employment:  The Reagan Administration.  Like President Obama, President Reagan inherited a severe recession, just as his term began in 1981.  Reagan’s response was less, rather than more government.

Reagan persuaded Congress to  reduce all the income tax bracket rates, and to reduce business regulation.  The result was an unprecedented 22 years of job growth,  prosperity, and continuously increasing government tax revenue.  The Reagan boom was finally brought down two years ago by the cumulative effects of more than a decade of adverse government intervention in the mortgage and financial markets.

For two decades Reagan’s Leftist critics have told us the only thing that mattered about his administration was budget deficits, adding up to $1.3 Trillion over eight years.  But with today’s stimulus and last week’s $350 Billion addition to the Big Bailout, Congress has added $1.3 Trillion to the 2009 deficit in only two weeks!

The Senate is already working on it’s own version which apparently will be even more expensive than today’s House version.

2 Comments so far

  1. SharonG on January 29th, 2009

    Its all those tax cuts that got us into this crisis.

    Conservatives are one trick ponies. No matter what the problem is they say cut taxes.

  2. aaa again on January 29th, 2009

    Sharon says: “Its all those tax cuts that got us into this crisis.”

    So Sharon, perhaps you would like to tell us just how those tax cuts got us into this crisis. Please, be specific. You can defend your statement with facts, logic and specific mechanisms……….right……right??

    This ought to be good (snicker)