- May 13, 2010
- Reaction score
- Los Angels, USA
- Political Leaning
- Slightly Conservative
President Obama, as most Democrats, fallow the Keynesian theory with respect to the economy, which try to stimulate the economy with increased government spending.Obama and Economics: Intellectually Clueless
Townhall - Larry Elder - Obama and Economics: Intellectually Clueless
by Larry Elder
While in high school, I was standing at a bus stop next to a gas station. A kid tossed a candy wrapper on the station lot. Somebody yelled, "Hey, pick that up." The kid, with a straight face, defended himself. He said, "I just created a job." Someone would be hired, he explained, to pick up the trash, and this would be good for the economy.
Don't laugh. The kid probably works for the Obama administration.
Congress is now considering yet another "stimulus" package. But did the administration's previous one work? Of the $787 billion stimulus package, President Obama said it would "save or create" 3.5 million new jobs. Has it?
The National Association for Business Economics polled 68 private-sector members. Seventy-three percent said the employment at their companies was neither higher nor lower as a result of the stimulus package.
What about the nonpartisan Congressional Budget Office? A February 2009 Washington Times article said:
"President Obama's economic recovery package will actually hurt the economy more in the long run than if he were to do nothing, the nonpartisan Congressional Budget Office said Wednesday.
Supply side economics argue that lower taxes and less regulation will create economic growth, since tax cut cost will be offset by increase in tax revenue. If the 787 million stimulus program would has been used in tax cuts, the economy would be sizzling, and new business and employment created.