More Stimulus Unintended Consequences – – Fewer New Jobs

Those of us who are fans of Austrian Economics knew it all along.  George McGovern apparently learned it too late.  Barak Obama and his economic advisers seem clueless still.  Government intervention in the economy nearly always does more harm than good.  An online article  ,  How the Stimulus Discourages Hiring , in that bastion of free market economics – the New York Times –  suggests that more people are learning – some the hard way.

In the article Jay Goltz points out that stimulus initiatives put more financial burden on employers at exactly the time they can afford them least – when they are in trouble and laying people off.  He suggests that this means small businesses will be slower to create new jobs.  That’s precisely what Austrian Economics predicts.  If you prevent the economy from adjusting,  the pain will be prolonged.  

Goltz opens the article with a reference to an article by -of all people – Geroge McGovern – who after a lifetime of “public service” decided to try his hand at small business.   Here is a quote from that article

I’m for protecting the health and well-being of both workers and consumers. I’m for a clean environment and economic justice. But I’m convinced we can pursue those worthy goals and still cut down vastly on the incredible paperwork, the complicated tax forms, the number of minute regulations, and the seemingly endless reporting requirements that afflict American business.

McGovern comments that he wished he had more small business experience before becoming a legislator.   Did he mean perhaps knowing something about actually creating value before making the laws that created many of those problems? 

Can someone tell me if Barack Obama ever held a real job or ran any sort of economic activity where he would learn anything at all about creating economic value?

2 thoughts on “More Stimulus Unintended Consequences – – Fewer New Jobs”

  1. Obama hasn’t held a job where profit and revenue were his main concerns. His brief stint as a lawyer was doing public advocacy law anyway. Mostly what he did is work with activist and special interest non-profit groups figuring out how to shake down the government or business for more money for minorities.

    Business people need to speak up more about the realities of the commercial world. Too many voices on all sides are from hacks and wonks. What’s even worse is that the percentage of the U.S. population working for government and non-profits (many of which live off government grants in part or wholly) is growing and has been for years. This is to say nothing of the businesses that make a living off of government – law firms, consultants and every other conceivable type of supplier. Just the govt and non-profits together employ around 35 million people. These folks have an outsized influence on governmental policy, and largely vote Democrat (if you subtract the Military it’s even more starkly left wing).

    This huge constituency will inevitably seek to aggrandize itself. Now that the media has gone in the tank for the left, those of us who believe in freedom have an uphill battle. This vicious cabal look at business as fundamentally evil and as a source of revenue. It’s so funny to see one of them confronted by an actual business person, the contrasts are striking. Go to Youtube and watch Maxine Waters question the CEOs of the leading banks of the U.S. – her inability to even conceive of how business works is obvious – and she doesn’t even know it. Even watch them with someone like Dodd or McCain – they aren’t as stupid as Ms. Waters, but have the same otherworldly quality when they speak.

    This is another reason that I’ve come to support term limits. Let’s rotate real people through Congress by eliminating the career path of professional politician. Imagine if reps were limited to 6 yrs and senators 12? It might actually attract people who want to do some good and then go back to their lives versus perverse creature like Nance Pelosi and Lindsay Graham. These folks wouldn’t make it through a job interview with me, but somehow they are running the country. Something is dreadfully wrong with the way Congress currently works and we need to fix it.

  2. Scribbler – thanks for your comment. You raise some great points. I spent a little time looking for a listing of Obama’s work history but found none. If you know where to find it let me know. I’m sure you are correct that he’s never held a real job – and by that I mean one with a market test. If I had unlimited resources (as long as we are talking market tests) I’d analyze what percent of Congress ever held a job with a market test.


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