« Obama wins Pulitzer Prize, Oscar, and Olympic gold medals to join his Nobel Prize | Main | "The One" Accepts Nobel Prize »
October 9, 2009
U.S. continues to lose jobs while Australia and Canada are adding jobs
Topics: Political News and commentariesWhile the U.S. continues to lose jobs - 263,000 in September, Canada's unemployment rate has not only stopped falling - it added 31,600 jobs in September. Add the fact that Australia's unemployment also fell in September, and one has to wonder why the U.S. continues to not only lose jobs, the U.S. unemployment rate of 9.8 per cent is higher than the UK (7.9%), Canada (8.7%), Germany (8.2%), or Australia (5.7%).
The difference? They've got their political leaders, the U.S. has Barack Obama and a far-left Democratic-led Congress.
As James Sherk points out at The Heritage Foundation, Obama's stimulus is destroying, not creating jobs:
Academic research shows that increased government spending and government jobs crowd-out private sector employment. The government does not create wealth, it only moves resources around in the economy. Even now, with the economy in a recession, the money spent on government jobs is money that cannot be used by business to expand their own operations. Businesses are still investing, but at a lower rate than the recession began. The money the government spends on "stimulus projects" cannot be used by these same businesses to expand. So while government employment grows - private sector jobs shrink. Overall the jobs created by government spending are offset by losses in the private sector - and then some. One study of the Swedish economy found that for each government job created 1.15 private sector workers lost theirs. Government spending does not "create or save" jobs.America should hope that Michael Barone is right and that the Democrats' job-killing policies are likely to doom their chances in 2010. Only by getting the Democrats out of power in Congress is America likely to see a turn-around in job-creation.Worse, higher government spending discourages private sector investment. A larger and more expansive government - and the taxes needed to fund it - reduce profitable business opportunities and deter investors from putting their money to work in the economy.
Unemployment has primarily risen because of the reduced private sector investment and job creation since the recession started. The stimulus bill - and the taxes that will eventually need to be raised to pay for it - discourage investment and entrepreneurial job creation. No wonder that research shows that reducing government spending helps the economy while raising taxes harms it. Unemployment will probably remain unacceptably high for years to come - in part because of the misnamed stimulus bill.
Posted by Abdul at October 9, 2009 10:13 AM
Articles Related to Political News and commentaries:
