‘Obamanomics’ Rises Up Again
Obama alleges his Keynesian jobs bill will create jobs and is generally supported by economists. Wrong on both counts!
Remember that Obama’s short-term, targeted stimulus, directed by the government, failed to prevent unemployment from exceeding 8 percent, the upper limit he promised in 2008.
His antiquated Keynesian tactic failed again, as it had failed for FDR, for Japan and for Western Europe. Kennedy and Reagan proved that unleashing the private sector by cutting taxes is how to create jobs and grow the economy.
Obama alleges his plan to add 1.9 million jobs had gained broad support from anonymous economists. But the consensus of 34 economists in a Bloomberg survey estimated that about 288,000 temporary jobs could be produced, at the cost of about $1.5 million for each potential job.
Even more damaging to the basic tenets of “Obamanomics” is the criticism by the 2011 Nobel Laureates in Economics, Thomas J. Sargent and Christopher A. Sims. The award was given for research on the core economic issue dividing liberal and conservative politicians, “cause and effect in the macroeconomy.”
Professor Sargent dismisses Obama’s allegations of “widespread agreement in favor of big fiscal stimulus.
Obama should have been told that there are respectable reasons for doubting that fiscal stimulus packages promote prosperity.”
In 2009, he said the rationale for Obama’s stimulus package “is what we have learned in the past 60 years of macroeconomic research.”
It’s fair to say that the jobs bill is devoid of any valid economic rationale.
The real rationale is political.
The fallacy of stimulus demands rejection of the bill, the outcome Obama needs for his campaign slogans.
But can Obama convince the electorate that he’s the economic expert and Nobel Laureates are wrong?
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