American Elephants

Agriculture Secretary Vilsack: Food Stamps Create Jobs. by The Elephant's Child

The Obama administration is still using that Keynesian computer program that Christina Romer used when she was Chairman of the Council of Economic Advisers. The program apparently tells you if you put X amount of dollars into the economy, just how many jobs will be created or saved by the “multiplier effect.”

It seems to be an article of faith among Democrats that Keynesian economics — spending lots of money by the government — by the magic of money passing through many hands, creates more wealth in the economy, and thus more jobs.  Didn’t work for FDR, has never worked, defies common sense, and there is all sorts of evidence from economists to prove that it doesn’t work.  Democrat economists disagree — and are sure that it will work this time if they just spend enough money. They agree that the reason that Obama’s stimulus didn’t work was that he didn’t spend enough.

The other article of Democrat faith is also based on computer programs — the climate programs used by the IPCC.  They took what they knew about climate (which wasn’t very much) and created a model of the earth’s climate.  Since they didn’t know much about how climate really worked, there were lots of assumptions and guesses that made up a major part of the programs.  The programs turned out some scary estimates of disaster in 50 or 100 years, but that seems to be another result of some magic “multiplier effect” since the programs cannot correctly predict today’s climate.

This misplaced faith in multipliers has brought the economy to a disastrous level of debt, and a misplaced faith that eliminating carbon dioxide — one of the building blocks of life — will somehow save the earth from rises in temperature that exist only in their computer programs and rising seas that exist only in their imagination. If the ice is melting in the Arctic, it will cause the oceans to overflow, won’t it? When the ice melts in your glass of iced tea, does your glass overflow?

So, no, food stamps may be a real help to people out of a job, but they don’t create jobs, except for government jobs, which are paid for by the taxpayers.

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