The government cannot generate economic stimulus. Being a leech that lives off the general economy it is always a drag on the economy, not a force to create rapid growth (technology investment creates long term growth potential). Sometimes a needed one to ensure things do not run out of control or people are enslaved by the greed of others. But it is a drag on the economy, taking money from everyone who works to fund its missions – and its mistakes.
When the economy dips or stumbles the proven method used by George W Bush, Ronald Reagan and John F Kennedy was to lower taxes and reduce government spending to give some air to the economy so it can pick back up. This proven approach is evil incarnate to the liberal mind – one wrapped in fairy tales of left wing superiority. It is false to say nothing else could have been done. All the money wasted in the stimulus bill would have had an impact if taxes and spending were cut.
It is only the extremely naive and gullible who think the leech of government can stimulate the economy and create jobs. This weekÂ a very naive, young President came out to tout his liberal stimulus bill, to put lipstick on his bloated and lethargic pig. It truly was one of the dumbest political moves I have ever seen.
We all know the ‘stimulus’ bill failed to stimulate anything. That is because the 80% spent to date has all gone to cover state deficits, unemployment, food stamps and medicare. No one should buy the myth bloated state governments had no room to cut bureaucratic waste, salaries and services before the teachers, fire/rescue and police.
To date very, very little has been spent on job producing make-work projects. That is because even the builders of our vast and bloated bureaucracy (i.e., Congress) have never understood how slow and ponderous this federal leech has become. The fact is it takes years to move money from a congressional budget line to an actual spending project which is creating jobs. That is why this liberal mirage was doomed to fail before the ink dried on the bill – the jobs were not going to show up within a year.
We have the government generated data here to prove it. First, here is a reminder of the unemployment picture since January 2008, with a highlight of when the stimulus bill was passed. It illustrates the unaltered trajectory of the U3 (general unemployment) and U6 (all unemployed, underemployed, etc)