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May 26, 2011

Jobless claims up (Expectedly 'Unexpected')

Topics: Political News and commentaries

Once again ... it's the usual "unexpected" increase in our jobless "recovery":

[...] New U.S. claims for unemployment benefits unexpectedly climbed to 424,000 last week from a revised 414,000 in the prior week, pointing to a painfully slow improvement in the nation's job markets.

[...] Economists surveyed by Reuters had forecast that claims last week would decline to 400,000, rather than rise.

The fact that government "investment" (plain English - 'spending') doesn't create jobs - only the private sector does - just seems to be beyond the White House's ability to understand:
... big-government public works projects allow Washington politicians in both political parties to claim to be "doing something" about high unemployment. But the reality is that every dollar spent by government is one less that is available for the private sector to invest in new businesses and technologies that spur the creation of permanent jobs. Indeed, if increased government spending were the solution to high unemployment, the U.S. economy would be short of workers. Just since the last two years of the Bush administration, the federal budget has grown 36 percent, from $2.7 trillion to $3.7 trillion annually. Discretionary spending has gone up 25 percent. The Heritage Foundation's Brian Reidl projects that the national debt will grow nearly $20 trillion by 2021, reaching 100 percent of gross domestic product that year. The annual budget deficit will exceed $1 trillion every year for the next decade.

But it's exactly that tidal wave of federal spending, along with the trillions borrowed from China and other overseas creditors and thousands of pages of new federal regulations, that's preventing the economy from creating new jobs and growth.

And as Robert Ringer explains, literally every dollar used to pay for so-called "government-created jobs" comes from wealth producers in the private sector and is nothing less than wealth-redistribution:
Like FDR, BHO has the arrogance to use your money to "create" a job for someone else. The fact that creating jobs is not a Constitutional function of government doesn't seem to bother BHO anymore than it did FDR. And, just as FDR's intervention in the economy kept the U.S. in a depression seven or eight years longer than was necessary, BHO's shenanigans are virtually certain to have the same effect.

As always, the rationale of socialists sounds compassionate: Government has a duty to help unemployed citizens by "creating jobs." As Barney Frank angrily (and rhetorically) asked in a recent interview on 60 Minutes, "What do you expect people to do, starve?"

Clever way of changing the subject -- the moral and legal fact of life is that the government has no duty or obligation to create any job for anyone. So-called government job creation is, in fact, nothing more than a form of redistribution of wealth. Why? Because the money used to pay for government-created jobs comes from wealth producers in the private sector.

Worse, the jobs created by government are ones for which there is no market demand. As a result of the taxes that fund these jobs (without getting into the problems caused by inflating the money supply or borrowing), businesses have less money to employ people in private industry. Thus, the net effect is that there is no reduction in unemployment. This is just another example of how government intervention causes one person to gain at the expense of another.

[...] Finally, the taxpayers who no longer have the money that was used to create the unneeded government jobs have less to spend on products and services that they desire. Thus, production is slowed and unemployment in private industry is actually increased.

In other words, not only is the job loss actually not "unexpected" ... we can 'expect' job creation to remain slow to non-existent as long as we have a White House that rejects the basic principles of capitalism and the free market - believing instead that the solution to our economic woes is to take from the producers and redistribute to non-producers as a means of job creation. Not only is it illogical, it just doesn't work.

Much-related video: Milton Freidman schools Phil Donahue on socialism vs. capitalism (It's what BHO the members of his party need to understand):

Posted by Abdul at May 26, 2011 10:41 AM

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