Stimulus-Stimulus? What Stimulus?
In February the President said we needed an immediate stimulus of close to 800 Billion dollars, at once, to stop unemployment from going past 8%. He got his stimulus money and the recession has deepened with unemployment closing in on 10%. A new term has entered his rhetoric and that is” the jobs that have been saved”. This is absolute nonsense since jobs saved cannot be measured and the saved jobs do not help the 10% of Americans that are unemployed.
The President obviously did not take an Economics101 course in the secret curricula he pursued at Occidental and Columbia. If he had, he would have learned that money is not free. When money is borrowed there is a price to be paid. The government money being printed for the stimulus and other government extravagances is paid for by the public.
We pay by the dollar buying less because of the inflation that all this government debt will cause. The private sector cannot easily compete with the government for credit to expand business and create jobs. The government in essence is stifling job creation with the mounting debt that it is creating with the printing of money, which in turn causes a weaker dollar. A weaker dollar causes oil and other prices to rise which in turn exacerbates the recessionary spiral by taking money off the table that might be used to expand business and create jobs.
The Obama team is talking about a second stimulus possibly being needed to solve the unemployment problem. It is astonishing that these politicians are in positions of responsibility in which we put them. They really don’t know that jobs are created by the private sector. Government does not create the wealth. Government diminishes the wealth available for jobs, business expansion and all those individual entrepreneurs that have made the country great.
Every politician before being sworn in should be required to pass a simple test proving that he or she has read the Scottish Economist Adam Smith’s magnum opus, Wealth of Nations. This work lays out the basic tenants as to how money works. It was written in 1776 and is a reasonable understandable outline of the financial relationship between the private sector and government.. Obama and his economic demolition team have not read Adam Smith. They also have not studied the failures of the Obama Statist economic strategy where ever it has been applied.
When I heard Obama say that a second stimulus is not off the table, my head started pounding again. This is happening on almost a daily basis as the voids of basic knowledge and absolute incompetence of this administration unfolds.
In one week from Obama, we have heard the call for a global cooperative of governments, a health plan that will cost a trillion more dollars and reduce coverage, a willingness to enter into negotiations with the Taliban and pressure being placed on the Senate to pass the Cap and Trade emission reduction bill which will not reduce emissions but will cost American families thousands of additional dollars per year for their energy requirements.
What Obama and his team need to do is to take a few weeks off and learn a bit about the history of governments.. As the old saying predicts; ”If you don’t know history you are doomed to repeat it” It is clearly evident that this Administration has not done any of the needed homework in preparation for running the country. Since the President’s college studies at Occidental and Columbia have been kept secret we really have no idea what he knows.
My suggestion is that he start some remedial, make up studies and start with Adam Smith.
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