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LOTT'S NUMBERS: Why Is Unemployment Rising Faster In the U.S. Than Other Countries?
• FoxObama's top economic adviser,claimed that because of the stimulus:
"We have walked a substantial distance back from the economic abyss and are on the path toward economic recovery. Most importantly, we have seen a substantial change in the trend of job loss."
And Vice President Biden declared at the end of September:
"In my wildest dreams, I never thought it [the stimulus] would work this well."
As President Obama and other Democrats have correctly pointed out many times, this has been a worldwide recession. But if Summers and Biden are right in their assessment of the stimulus measures, one would think that the U.S. economy should be recovering better the many other countries, countries not wise enough to follow Obama's lead of an extraordinary $787 billion increase in government spending. It is also particularly timely to evaluate the spending since Christina Romer, the chairwoman of President Obama's Council of Economic Advisers, told Congress today that the stimulus had already had most of its impact on the economy.So why would more stimulus increase unemployment? Spending almost a trillion dollars on various stimulus projects means moving a lot of resources from areas where the private sector would have spent it to the public sector thus eliminating the jobs many people currently have.
The unemployment data from other countries raises serious questions about the large government-spending program, especially since the U.S. program that was primarily sold as a good way to create or save millions of jobs. With the Obama administration and Congress already talking about possibly providing another $200 billion to extend these government-spending programs, these data raise real questions about the efficacy of this spending.
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1 Comments in Response to LOTT'S NUMBERS: Why Is Unemployment Rising Faster In the U.S. Than Other Countries?
There's nothing in the article about the manufacturing base in these countries. I bet they still retained a decent number of factories and still produce items of value--whereas most of our factories packed up and left. It means that people without a college education have only low-paying jobs to choose from, and many of those jobs were taken by illegals. Many better-paying jobs were given to aliens or outsourced as well. I read there are now a minimum of 6 applicants for every job opening and I bet that number is underestimated. When a new Burger King advertises for 15 jobs and 1500 show up, you know we are screwed.