Smells like tyranny to me

Recent data from the Bureau of Labor Statistics shows that millions of our fellow citizens, especially the poor and less educated are paying dearly for the Obama administration’s academic exercise to rehabilitate Keynesianism.

Keynes is the father of “demand-side” stimulus theory which was first tried during the Great Depression as FDR’s “new Deal.” But, in 2004, UCLA economists Harold L. Cole and Lee E. Ohanian concluded that rather than help the economy, “FDR’s policies prolonged the misery by 7 years.*”

While the Obama administration spends recklessly on wasteful boondoggles, private investment is, quite obviously, being crowded out and jobs are continuing to be shed.

According to the Washington Times:

“The number of people with a job fell by 589,000 in December. On top of that job loss, the number of people no longer in the labor force grew by an astounding 843,000 from November to December.”

Since February, when the stimulus package was passed, the number of people not in the labor force has grown by 3.2 million. The number for December represents 26 percent of the entire increase. This is important because these millions of people are not included in the official unemployment rate. The crisis of unemployed Americans getting discouraged and giving up looking for work is ballooning. Of course, they have good reasons to be discouraged. Since February [2009], the total number of jobs has fallen by 4 million."

Me-thinks a tyrant is loose in the land.

*In an interview, Ohanian said:


"Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump…We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."





Also see: For Obama, a Very Good Crisis