New Ideas?

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President Obama loves to give speeches.

And let him be clear…

The federal government is trying to find new ways to “create jobs.”

And in the Presidential syntax…

Let me be clear…

His new $400 billion speech about job creation does not offer anything new…

Just a re-hashed way of describing what he continues to do…

Which is…

“Fundamentally change this country.”

Unfortunately, this was one campaign promise that he actually kept.

Will the markets regain confidence and value after hearing the speech?

Doubtful…

No new ideas…

Only bad ones.

Change means destruction

Barack Obama has fundamentally changed the country…

By destroying the economy.

Of course, now he wants to finish the job…

Which means his plan must include more taxes, more deficit spending, and more power to the federal government to spend money….

And to tell Americans just how much money they should be making, and how it should be spent…

It’s all right there in the Little Red Book, our latest import from China…

And when it comes to “job creation,” Obama has no new ideas…

Federal “job creation” is a very old idea…

And a not very good one, either.

It happens to be very similar to the wolf telling the sheep that the lamb chops and the wool needs to be “spread around…”

Selfish sheep…keeping it all to themselves...

They should give more of themselves…

But federal job creation is a fiction.

Think about it this way…

Does making an omelet create more eggs?

Or just break the ones that already exist?

If government is in the business of “creating” jobs, then it must actually “pay” someone to do the job it created...

How does the federal government “pay” a government worker?

There are only two ways the federal government obtains money…

Through taxation (and regulation, which is another form of taxation)…

And through printing it.

That’s it.

So far, the Obama Administration has been doing a lot of both.

How?

Well…

We know that deficit spending is one of the President’s very favorite things to do…

Because he does so much of it…

If only the President would play more golf, we might actually spend less money.

Spreading the wealth

And remember “Joe the plumber” along the 2008 campaign trail?

What did Candidate Obama promise?

He said he wanted to “spread the wealth around.”

By that he meant taking money—through taxation--from one group…

Those Americans who are working and earning it…

And “spreading it around” by giving it to other groups…

Namely, those who are not working…And there’s certainly many more in that category today…

And some who are newly working…

He has accomplished this through entitlement payments and…

An explosion of government jobs.

You won’t believe the statistics…

The head count at the federal government’s regulatory agencies, for example, has grown by 13% since Obama took office…

With more people on its payrolls than McDonald’s, Ford, Disney, and Boeing combined…

While jobs in the private sector shrank by 5.6%.

The “revenues” of federal regulatory operations grew 16% since 2008, while the economy only grew 5%...if that.

And now look where we are...

Care to guess the President’s plans for the 2012 budget?

It’s chock full o’ nuts…

He wants to “create” another 15,000 federal jobs…

This includes the addition of 4,182 Internal Revenue Service workers…

Just to make sure you pay your share of taxes…

To pay the IRS agent auditing your tax return…

To make you pay your share of taxes…

To pay the IRS agent auditing your tax return…

To make you pay your share of taxes…

Ad infinitum.

And that’s what Obama meant by “spreading the wealth around.”

But of course, 1,054 of those IRS workers will be directed toward enforcing Obamacare…

Creating jobs destroys jobs

And private sector jobs?

Research and plenty of past and current experience shows that government spending crowds out private investment.

According to a Heritage Foundation report, each $1 in government spending reduces private-sector investment by $0.46-$0.97 after 2 years, and $0.95 over 5 years.

Government spending, in fact, replaces private sector investment.

But it gets worse…

Government spending actually kills jobs—not create them—by taking money and investment out of the private sector…

And, politics and political priorities drive the creation of federal jobs and federal spending, not economic needs or market priorities.

If this were not the case, then Western European nations like Germany and France, who both have high levels of government employment and taxation, would not have structural unemployment rates around 10% or higher.

Real unemployment

America’s “official” unemployment rate is 9.2%...

But that only counts those unemployed who still file for unemployment.

But if we include those whose employment benefits have run out…

(Remember, unemployment was over 8% when Obama took office over 2 ½ years ago—so all those receiving unemployment benefits then are no longer on the rolls)…

And add in those who have given up on finding a job…

And let’s not forget those who lost their main job and who now work for much less (also known as the “under-employed”)…

Then the real unemployment rate is closer to 20%.

If we add in the new government workers that Obama has added to the payroll as not really being employed…

Then who knows?

But there is one thing we can be certain of…

That the real unemployment rate in America is a lot more than the official unemployment rate of 9.2%.

So, we know that government jobs are not the answer to economic growth.

We also know that government jobs are not the jobs needed in the economy…

But, that government jobs are politically, not economically driven…

And also that they make more people—both the unemployed and those with federal jobs—more dependent upon the federal government.

The President’s message is clear…

To you folks working and earning money out there, you need to pay a little more…

That’s the real problem…

Right.

Old ideas work fine

But we don’t need new ideas to grow the economy…

Just sound ideas based on economic principles.

Although government can’t create jobs, it can create the environment for jobs to be created…

And those ideas—low taxes, low regulations, competition, reward for innovation—are all ideas that work.

They have worked in the past; they’ll work now…

They’ll even work for former community organizers with a murky provenance and questionable motives…

If the President would let them…

But until such time…

Don’t be a selfish sheep…

Pay your share of taxes today…

And then pay more tomorrow.

So open your wallets with a smile…

Because even if you don’t, Barack Obama surely will.

And those are…The Gorrie Details.

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