Voodoo Economics Pt 2: Government Doesn't Create Jobs

Posted on October 31, 2012 by

1


Joe Biden und Barack Obama in Springfield, Ill...

Joe Biden und Barack Obama in Springfield, Illinois, right after Biden was formerly introduced by Obama as his running mate (Photo credit: Wikipedia)

In a recent report, the Congressional Research Service revealed that welfare spending has increased by 33% under Barack Obama, topping out at over $1 Trillion annually. As I pointed out in my previous post on the report, baseline spending on social programs has deliberately been driven up by the Obama administration, despite (or perhaps due to) the fact that they have failed to pass a budget in nearly four years.

Table 2 in this report revealed something that should be obvious, but is lost on Keynsians and the bureaucrats who rely on their arguments to justify their existence. A classic argument from the Left is that in order to fix our economy, we must invest in education and job training. The logic goes a little like this:

  1. Train unemployed people for a new job
  2. Tax corporations and the rich to pay for it
  3. Funnel the money through government bureaucracy
  4. ???
  5. NEW JOBS ARE CREATED!

For those of us living in the real world, it seems obvious that merely increasing the pool of available workers might not be sufficient to create jobs. In fact, the Employment and Training section of Table 2 reveals just that:

Click here to read the full post.

Enhanced by Zemanta
Advertisements
Posted in: Uncategorized