Government cannot create jobs, they can only redirect jobs. They must destroy jobs in the private sector by way of taxation, inflation or debt, in order to create jobs in the public sector. Jobs based on economics are sacrificed to create jobs based on politics. There is no more thoroughly discredited theory than that of socialist, centrally-planned economies, yet between people’s desire to have government solve all their problems, and the hubris of politicians, these long-discredited ideas again rise from the grave.
The Keynesian central planers benefits from a rhetorical advantage. We can see public works being built, banks receiving bailout checks, or money falling from Ben Bernanke’s helicopter. Meanwhile, it remains difficult for the Austrian economists, free marketers, and liberty lovers to wake the masses to the vast quantities of goods and services sacrificed in order to create the public works, bailouts, free money, or for that matter, foreign wars. This requires thought and imagination.
For now, the Keynesians have won. The result is already a circus of greed, lies and opportunism, as ignorant government bureaucrats attempt to demonstrate economic prowess, and businessmen attempt the bend the laws to their favor. Try to enjoy the show. It’s only beginning. Had we done nothing, the incompetent people would have gone out of business, and the responsible ones, the ones who’d been saving and investing wisely would have had the opportunity to buy out their assets. After a few years of pain, we’d again find ourselves on sound footing. Instead the circus has come to town:
– Concerns raised that GM will not survive (this is after taxpayers gave them $13.4 billion)
– AIG’s Fourth Rescue May Not Put End to Taxpayer Help Fed Chairman Ben S. Bernanke testified to the Senate yesterday that AIG’s collapse “would be devastating to the stability of the world financial system” and would keep the U.S. government from recouping its investments, which had already ballooned to $150 billion.
– Sen. Sanders: “Will you tell the American people to whom you lent $2.2 trillion of their dollars?” Bernanke: “No.”
– Black Hole Alert: GM, Chrysler Seeking More Federal Support
– Another $30 Billion in Funds to A.I.G.
– AIG Sues U.S. Government (WTF?)
– JP Morgan Chase Continues Foreclosure Proceedings Despite Promised Freeze
– Obama: “This time, CEOs won’t be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet.” This time? THIS time???? How about the last time you gave them hundreds of billions of dollars? Remember? It was just a few weeks ago.
– Lawyers chasing bonus-receiving Merrill Lynch execs New York’s top legal officer on Thursday demanded Bank of America Corp Chief Executive Kenneth Lewis provide names of Merrill Lynch executives who received 2008 bonuses, and how much they got, before the bank’s takeover of the firm in January.
– Stonewalling in Style: Bank of America Subpoenaed [BOA president] Lewis refused to provide a list of bonus payments to the New York Attorney General, after arriving in New York in his $50 million corporate jet. Earlier this week, President Obama said the days of bank executives flying corporate jets “were over.” Not for Bank of America.
– U.S. Economy: GDP Shrinks 6.2%, More Than Estimated
– Citi Gets Third Rescue as U.S. Plans to Raise Stake (Update6)
– Stimulus Watch (A great state-by-state overview of congressional pork. They’re throwing anvils at a drowning country.)
– AIG enters record books with $61.7 billion loss
– Obama unveils his $3.6tn budget He has predicted the budget deficit for the current year will be $1.75tn, which is 12.3% of annual output and the biggest since World War II. Planned spending includes $634bn to pay for healthcare reform and an extra $250bn to be set aside, in case it is needed to bail out US banks.
– Bend over, everybody. Bernanke Says U.S. May Need to Expand Bank Rescue
– Bernanke Blasts AIG For ‘Irresponsible Bets’ That Led to Bailouts “I think if there’s a single episode in this entire 18 months that has made me more angry, I can’t think of one, than AIG,” said the characteristically reserved central banker.
– SIXTY jobs created by stimulus (CNN). This is news??? Sixty? Are you kidding me? That’s about $13 billion per job.
– Jim Cramer: “This is the most, greatest wealth destruction I’ve seen by a president.”
Jim Cramer doesn’t like it? Hell, then we must be on the right track!
Ha! I’ve heard similar sarcasm about Mr. Cramer, but this time I happen to agree with him. We’re throwing anchors at a drowning economy.