American Elephants

All Those Job Losses Prove the Stimulus Worked! by The Elephant's Child
July 13, 2011, 6:42 pm
Filed under: Capitalism, Democrat Corruption, Domestic Policy, Economy, Politics

Transcript: Our biggest priority of this administration is getting the economy back on track and putting people back to work. Now, without re-litigating the past, I am absolutely convinced and the vast majority of economists are convinced that the steps we took in the recovery act saved millions of people their jobs, or created a whole bunch of jobs. And, part of the evidence of that, as you see instances of the recovery act phasing out.

When I came into office and budgets were hemorrhaging at the state level. Part of the recovery act was giving states help so they wouldn’t have to lay off teachers, police officers and firefighters. As we’ve seen that federal support for states diminish, we’ve seen the biggest job losses in the public sector — teachers, police officers, firefighters, losing their jobs.

So, my strong preference would be for us to figure out ways that we can continue to provide help across the board. But I’m operating within some political constraints, because whatever I do, has to go through the House of Representatives. What that means then is, among the options that are available to us is for example the payroll tax cut.

I remember that numbers of the places where stimulus money was going were published, and a considerable amount of funds went to non-existent congressional districts. I never read of any massive layoffs of unionized teachers or police officers or firefighters.  States and cities are usually pretty reluctant to cut into the public safety network, and getting rid of union employees isn’t easy.

And the vast majority of economists probably consist of Austan Goolsbee, Katharine Abraham and Carl Shapiro,  and of course the other 13 economists on the president’s Council of Economic Advisers. And of course  Paul Krugman. That must seem like the vast majority of economists. or maybe he just made it up.

Small Business Has No Plans to Hire This Year! by The Elephant's Child

The Small Business Association says that small businesses — defined as companies with fewer than 500 workers — employ about half of the workers in the private sector.  The Chamber of Commerce defines small businesses as firms with revenue of $25 million or less.

In the Chamber’s new survey of  1,409 executives conducted by Harris Interactive,  about two-thirds (64%) said they weren’t expecting to add to their payrolls in the next year.  Another 12% planned to cut jobs.  Only 19% said they would increase their workforce.

More than half of those surveyed said that economic uncertainty was the main reason for holding back.  About a third said poor sales were responsible, and only 7% said that they had problems getting credit.

The executives had confidence in their own companies, but not a lot of confidence in the future of the country.  84% said the U.S. economy was headed in the wrong direction.

These are dismal prospects for the economy. These are vibrant small companies hoping to grow bigger, and economic uncertainty and a lack of confidence in the future keeps them from sitting on their hands.

About 29% of the business executives surveyed had let workers go during the past year. The small number who plan to hire don’t begin to make up for those who have lost their jobs.

Today, the president stormed out of the meeting with Congressional leaders whom he had invited to the White House, saying that he wasn’t going to budge.  David Axlerod warned  Obama when he was first elected that he was unused to criticism and disagreement, and he was going to have to learn to deal with it.  Obama has apparently not learned.

President Obama seems to see governing as defined by spending money on policies.  I heard Obama remark that he couldn’t cut way back on spending — he wouldn’t be able to do anything. (I paraphrase very loosely).  This is an astounding misunderstanding of the nature of governing, but it fits with what he has done, and with his expressed aims.

He has been enthusiastic about government subsidies and grants for makers of electric car batteries, solar panels, insulated windows, electric cars, wind farms and solar arrays.  It is those factories that he has visited most often and most often extolled.  He said recently that he wants an “infrastructure bank.” I thought the failure of government sponsored enterprises was so notable that everyone knew, but apparently not.

The Left has probably never read about the failure of the Soviet Union. They’re not much interested in evidence.

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