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December 28, 2009
No Surprise: Bulk of Stimulus Comes in Election Year 2010 (But the laugh's on them)
Topics: Political News and commentariesClearly, the "Alinsky Chicago machine" is more interested in their own political gain than the U.S. economy.
However, if what we've seen out of the stimulus so far is any indication of what further stimulus dollars will accomplish, their attempt to stack the election deck in their favor at the cost of American's tax dollars and American jobs, could end up being of no benefit to the Chicago machine crowd of Obama, Axelrod, Jarrett, and Rahm. As far-left socialists, they failed to realize that no income is generated from government jobs, it's nothing more than redistributing money from one group of people (the American taxpayers), to another. No new demand is actually created.
Brian C. Riedl writes at The Washington Times:
Last January, a report by White House economists predicted the $787 billion stimulus would create (not just save) 3.3 million net jobs. Since then, 3.4 million net jobs have been lost, pushing unemployment over 10 percent. And now the White House concedes that by next summer the stimulus will be "contributing little to further growth."As Riedl goes on to point out, in reality, individuals and businesses drive economic and productivity growth through work, investment, innovation and entrepreneurship. This requires less government spending, taxes and budget deficits - not more.By the White House's own standards, the stimulus failed.
Its central flaw? It was based on the myth that government spending is a free lunch.
Stimulus advocates assert that government spending injects new dollars into the economy, thereby increasing demand and spurring economic growth. It makes perfect sense under one condition: No one asks where the government got the money.
Congress doesn't have a vault of money waiting to be distributed. Every dollar Congress "injects" into the economy must first be taxed or borrowedoutofthe economy. No new income, and therefore no new demand, is created. It is merely redistributed from one group of people to another.
Removing water from one end of a swimming pool and pouring it in the other end will not raise the overall water level - no matter how large the bucket. Similarly, redistributing dollars from one part of the economy to the other will not expand the economy, no matter how much is transferred. Not even in the short run.
The White House says the $200 billion spent from the stimulus thus far has financed nearly 1 million jobs. That may be true. However, the private sector now has $200 billion less to spend, which - by the same logic - must lose the same number of jobs, leaving a net jobs impact of zero. But the White House's single-entry bookkeeping simply ignores that side of the equation. (More)
In other words, American taxpayers and voters will have the final say, and the final laugh is likely to be on the Alinsky-ites from Chicago.
Posted by Abdul at December 28, 2009 2:56 PM
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