Sep 08, 2011 1:39 PM GMT
Jobs: In his speech Thursday, the president is expected to announce a stimulus 2.0 package said to cost $300 billion. But why should anyone expect this to work any better than the $4 trillion in stimulus already in the economy?
When industrialist John D. Rockefeller was asked how much money is enough, his now-famous answer was: "Just a little bit more." That, apparently, is also Obama's answer to stimulus spending.
After an $830 billion "economic recovery" plan, two auto bailouts, cash for clunkers, mortgage bailouts and at least two subsequent jobs programs, Obama wants to convince the country that just a little bit more stimulus is what the economy needs to finally get back on track.
But wait a minute. Since Obama took office, the government has run up $4 trillion in deficits. And even before his newest stimulus package, he's on track to add another $973 billion next year.
Unless Keynes' was wrong, shouldn't all that have superturbocharged the economy by now? We're not talking about a little bit of extra spending, but record amounts.
So far, Obama has run deficits that are more than twice as large as any president since Truman. And by the end of his first term, he will have borrowed more money than the federal government spent over the nation's first 200 years.
Yet all we've gotten in return for this epochal level of allegedly stimulative deficit spending is the country's worst economic recovery since the Great Depression.
Worse, the specific ideas Obama will apparently propose — more money for infrastructure, another extension to this year's payroll tax cut, an unemployment benefits extension and tax credits to encourage hiring the unemployed — have all been tried since he took office, and all have failed to move the needle on jobs.