There's a big lie being peddled out there. One bigger than that of when the devil convinced man he didn't exist. This lie has to do with the highly political, and overly hyped Obama stimulus package or, the American Reinvestment Act.
This package was suppose to save or create millions of jobs, and keep unemployment under 8%. Instead it neither created nor saved not one job, and unemployment is at 9.7% and rising like the sun in Japan. But we must look deeper into this so called economic stimulus package, and thus I'll explain why it was a failure and why Obama can't create real, strong job growth.
Let's take a trip down memory lane shall we? Franklin Delano Roosevelt ushers in the New Deal amid an economic depression the likes of which the country had never seen before. Massive spending programs, new government entitlements, and regulations that would last for more than 50 years came out of the New Deal. FDR did what many leftists today try to promote, and that is invest in the people. Government redistributes wealth and uses it to invest in the public sector. But this did not fare well for FDR, for even his own Treasury Secretary admitted that the New Deal was a failure because it didn't end the depression, in some ways it made the Great Depression worse.
Then World War II happened, and we were attacked by the Japanese at Pearl Harbor, dragging us into a war we were previously committed to stay out of. The United States engaged itself in a massive manufacturing period because the British Air Force needed planes, and we built planes and other Military arms like they were going out of style. In short, the war ended our depression, jobs created by the private sector ended the depression, not government spending and new intrusive programs like Social Security.
So even in the face of history rebuking their Utopian idea of what government can do for the people, leftists insist on these "public investment" ventures.
I want to ask you guys a question: "How does government create millions of jobs?" Let's say, 40 million, which was the number of jobs the Obama administration claimed the stimulus package saved or created. Of course when they was shown to be a fabrication at best, they moved the goal post to about 38 million, then 25 million saved or created.
But the truth is, new data shows the stimulus package saved or created 430,000 jobs, mainly in construction. But one thing this Associated Press report doesn't tell you is that most of those road construction jobs, most of them were already on the list to be approved by their respective state governments. So in reality, Obama saved 430,000 jobs and created none, well government jobs, but who's surprised about that?
You see Obama doesn't know how to create a job, nor does he have the insight into what it takes to generate the ability within the private sector for job creation. He like other progressives believe the government through spending program after spending program will create a job eventually along the line, somewhere in there, some time, at some point?
For example the White House's green jobs plan. Now, cap and trade won't create jobs, according to the CBO it will kill over 20 million jobs annually for the next 10 years. So for every rate say China's economy grows, our economy will shrink by about 15% over a 10 year clip. Instead of true green energy innovation and planning like for example drilling offshore, building gas pipelines like the one being built in Alaska (Sarah Palin was governor at the time, just so you leftists know) exploring new technology, finding ways to improve coal mining safety and improve the ways in which we use coal so that it won't affect the people of West Virginia, Obama wants to make life a living hell for the coal industry.
Who cares about the hundreds and hundreds of men who support their families, the polar bears are far more important than those greedy, industrially dependent humans. Cap and trade along with health care reform will break our private sector. Cap and trade will make it nearly impossible for construction companies to bid for jobs, because standards will continue to change and get tougher because the EPA will decide what's enviro-friendly and what's not. They already want to end driving as we know it, and instead invest in a mass nationwide light rail system and other public transportation projects. So do you really believe car manufacturers will be safe under cap and trade?
Central Planning won't work in the United States the way it worked in the old USSR and China. You see the American economic structure is more diverse, our private sector is more innovative and it doesn't rely on one main foundation the way China's economy (exports) and the USSR (weapons production) did. China's economy is an export economy and they lack a strong vibrant domestic economy. Here in the US we have a strong domestic economy, strong small business, finance, development and technology, and a moderately strong manufacturing sector. So when you try to create a government central planner, the other sectors of our economy become outmoded.
We need tax cuts, not VAT taxes or Sin taxes. We need offshore drilling ventures, we need to spend wisely on our research and development sector so that we boost our findings for new energy technology. We need to lower EPA standards, and build nuclear plants. France, of all places, one of the most fanatic of global warming true believers, nuclear energy make up more than half of their energy source. And yet, Barack Obama refuses the build one new nuclear plant here in America. He believe the EPA knows the way to green job creation by way of taxing us and raising our energy bills.
We need to build pipelines for natural gas, we need to upgrade our electrical technology, promote small business with a 25% tax cut, get rid of the sales tax, and lower the Corporate tax by about 40%. Right now the United States has the highest corporate tax in the world. That's one of the reasons American companies look for opportunity in India, and China.
Why increase the burden on those responsible for creating jobs? I would think the government wouldn't want to stand in the way of you know, employing the little guy so he can have a chance. But, they do and they will. Barack Obama and this new Democrat Party can't possibly lessen the burden on the private sector because they're at war with it. Sure, they can take all the corporate donations they want, but at the end of the day, they take with one hand from the private sector and strangle it with the other.
In terms of health care, this is the most serious. Today the one true sector of our economy that saw large growth not only during the height of the recession but during the recession and that is the health care field. Today you see commercials for schools designed specifically to train nurses and medical assistants because the health care field is growing at a positive clip. Why does health care in America cost more than it does in Canada? Because there are more people in America than in our great ally to the north, its called math my dear friends. The equipment and research costs a lot of money because it finding tomorrow's cure is an expensive task, but a noble and just one. Can you tell me, that taxing medical equipment and medical research will somehow maintain the highest and most advanced medical field in the world? Slap me, then pee on my leg and tell me a gust of wind blew my face and it started raining.
You stifle innovation when you make it difficult for small time medical research companies and larger companies to do their jobs. We ought to encourage our rising Health Care field, and grow it further, not tax it so we can pay for this mudslide to Universal health care. But this is where free marketeers like myself and Democrats part ways. They believe European style growth (0.2-2%) annually is good growth. While we believe China and India style growth (6-10%) annually is even better.
This, my dear conservative friends is where exceptionalism comes into play. Leftists don't believe in exceptionalism, nor do they believe individual actually accounted for what this country is today. Even when history proves it so, they either distort that history, seek to change it, or deny it altogether. These people look to Europe and see the model, they look to Canada's socialist system and see the model, the Canadian Finance Minister said so himself, that Obama looks to their model and sees an American model similar to that one in Canada.
So we know who and what we're dealing with here. This isn't change, nor are these new ideas, but instead the ideas are as old as time itself, the messenger just changed that's all. These old pre-Thatcher Euro style economical policies are bad for America. So they'll continue to lie and spin, and divert from the real issue of sustained, annual job creation and strong annual growth above 2-3%. They'll say, look at the stock market, it hit the 10,00 mark! Yet in March when the stock market was at an all time low, Barack Obama and his allies said the market was a false indicator of economic activity. What changed?
These people don't know what to do, and pretty soon hacks like Mark Zandi and other Obama economic advisers are going to ask for some cover in the form of real economic progress, instead of continuously spouting the talking points from the White House economic team. It reminds me of when Warren Buffet said the economy was in bad shape, and that Obama's policies weren't working, and in the same breath Buffet said we need to get behind those policies that aren't working.
Yeah I know....the mental patients are officially running the psyche ward ladies and gentlemen.