American Elephants


Tell Your Congressman: Government Spending Does Not Create Jobs! by The Elephant's Child
June 7, 2010, 10:39 pm
Filed under: Capitalism, Economy, Energy, Statism | Tags: , ,


The June Bureau of Labor Statistics employment report announced that net employment increased by 431,000 in May reducing the unemployment rate from 9.9 percent to 9.7 percent.  But not so fast.  411,000 of those new jobs are temporary government jobs associated with hiring for the census.  The private sector jobs only totaled 41,000.

These temporary jobs offset job losses in state governments (-15,000) and local governments (-7,000).  Educational hiring has not been affected.

But: Government spending does not create jobs or prosperity. Every time the government “creates” a job — the salary, the benefits, the office space, the parking spot, and the sign on the door — are funds that come right out of your pocket.  Democrats in Congress cannot seem to get this simple fact through their heads.  The increased government spending that many in Congress propose, will not reduce unemployment because it will do nothing to encourage businesses to invest or hire.

Layoffs have increased during this recession, but that is not the cause of the nearly 10 percent unemployment rate.  The main factor that has driven unemployment so high has been the sharp drop in creation of new jobs.

The biggest drag on the economy is sheer uncertainty.  Employers are unsure of how ObamaCare will affect them, how much it will cost, what steps they have to take.  The taxes and fees from ObamaCare take place immediately, but the benefits don’t occur until much later.  New and increased taxes are coming; how bad it will be is up in the air.  Energy costs will increase.  And regulations!  Congress is making up new regulations as are all the bureaus and departments of government, many of them buried in 2,000 page bills.  Unpleasant surprises waiting to hit the unwary.  This is not a situation that makes a  potential employer rush out to hire new people.

The BP Deepwater Horizon oil rig disaster is creating a nightmare in the Gulf states, and warnings in the press suggest that it could spread up the Atlantic coast.  As the oil reaches the beaches, jobs in shrimping, fishing, tourism, restaurants and all the industries that support those jobs are at risk.  President Obama ordered the rest of the rigs in the gulf shut down — unnecessarily, we are told — which may cost up to 10,000 jobs.

The Democrats latest $143 billion “jobs” bill (Stimulus 3.0) will add at least $84 billion to the deficit.  An extension of jobless benefits, bailout funds for state governments and their unions, lots of earmarks, and $43 billion of tax increases.  The spending is partially funded through an increase in the “Oil Spill Liability Trust Fund” tax.  There are provisions in the bill that will drive jobs and corporate headquarters overseas.  And no real analysis of the economic impact of the bill.

There is almost no one in the administration that has any experience in the private sector.  I don’t know what private-sector experience members of Congress have had, but I do know of a lot whose resumes consist almost entirely of “public service.”



Canada Adds 79,100 Jobs. Somebody is Doing Something Right. by The Elephant's Child
December 5, 2009, 3:19 am
Filed under: Capitalism, Economy, Politics | Tags: , ,

While the United States lost another 11,000 jobs in November, Canada has added 79,100 jobs, five times more than expected. Their jobless rate fell to 8.5 percent from October’s 8.6 percent.

One very interesting source of jobs up north, is a new $90 million SUV plant owned by — General Motors.




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