THE NEW DEAL WHICH IS NO BIG DEAL..
Sunday, January 11, 2009 at 10:55AM I thought this an excellent summary over at The Raional Actor of the sheer folly of Obama's shiny new economic stimulus plan. Naturally you can be sure the msm will not be asking tough questions of their man but I guess that makes it all the more important we do?.
"Obama announced today his stimulus plan will create or save 3 million jobs.
The cost of his plan is estimated at $800 billion to $1 trillion. If you take the low end of his estimate, that’s $266,666 spent on each of the 3 million jobs. People who have lost their jobs in the private sector will be given new jobs in the public sector, jobs for which there has previously been no demand. $266,666 represents only the initial cost of creating new jobs or maintaining those that are no longer needed. The long term costs are far greater. Instead of these people working at private sector jobs, earning a wage determined by the market, they will work jobs that, according to the market, do not add value, and will earn a wage arbitrarily determined by a bureaucrat. Unemployment will be artificially lowered and value will be drained from the economy rather than added.
In his January 3 radio address, Obama claimed 80% of the 3 million new jobs would be created in the private sector. That means 2,400,000 jobs in the private sector and 600,000 government jobs.
However, any jobs created by the public sector are government jobs, whether they are associated with a “private” company or not. The government is creating and funding the new positions, reportedly at a cost of $266,666 for each one. None of the new, government jobs can properly be classified in the “private sector.”
The nature of the new jobs is unknown, but Obama has suggested repeatedly they will be “green jobs” and will dramatically enhance our infrastructure. He raved about Communist China’s infrastructural accomplishments during the Olympics, apparently envious of what their 1,000,000,000+ slave population can accomplish. So, some of our unemployed stock analaysts can expect to be put to work on roads and bridges, and others can look forward to more glamorous endeavors like “green jobs.”
$266,666 per job is a surprising admission of inefficiency by the Obama team before their administration even begins. They perhaps failed to crunch the numbers, or knew scarcely anyone would notice the full weight of their announcement."
What is being planned here is the moving of US debt to eye-wateringly high levels which will affect generations to come; the State wil be grown in an unparalleled and intrusive manner, and of course the business of the re-distribution of wealth lies at the heart of all of this. You elect a socialist, you get socialism!
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Reader Comments (5)
What do you expect? - Isn't our 'dear, (as in expensive), Gordon' claiming to be the architect of this world saving scheme?
Of course, as with our own Dear Leader, this will amount to 'all talk, and very little do!', other than make a few more Congressmen or MPs a bit more wealthy.
Just a brief visit to the figures mentioned, $266,000 for each of the 3 million positions created?
For that sum they could - buy the average outstanding mortgage debt on 4.5 million homes. Not that I am saying that should be done, but it would be more effective than creating all those extra bureaucrats.
What is it about debt, and the repayment thereof, that politicians fail to understand?...likewise recession, - it means 'going back, - i.e. receding', or going back to pre-bubble levels.
Gentlemen, the bubble has burst - and even you cannot reflate a burst bubble...
It's very simple, Ernest, and I'm sure that you'll agree: it's about other people's money and the absence of accountability for its care.
Whether it's the public sector (government), or the corporate sector, the willingness of those at the helm to waste other people's money and the knowledge that nobody will ever hold them to account for the inevitable failures means that this is how it will be until a political party comes to power which will actually put the thieving class on trial.
Agree with both of you. Well said.
"He raved about Communist China’s infrastructural accomplishments during the Olympics,"
Yes, well no doubt he thinks the millions of Chinese who spent the time without electricity so the world could go 'oooo' at all the pretty lights in Beijing were just having their basic living standards 'redistributed' for the greater good.
Just like here then!