Friday, November 13, 2009

The Stimulus is Actually Destroying Jobs?

President Obama loves to claim the stimulus bill is creating jobs. He is now claiming more than one million created or saved. Many local newspapers and media outlets have analyzed Team Obama's data and are claiming much of the alleged job creation is inflated, erroneous or just plain made up.

Louis Woodhill
at Real Clear Markets claims the massive bond sales forced by the stimulus spending are actually killing jobs. I have excerpted a small portion of the article below. You can read more at Real Clear Markets.
Economic growth is supposed to create jobs. However, the U.S. economy shed twice as many jobs (1,332,000) in the third quarter of 2009, when GDP grew at a robust 3.5% annual rate, than it did in the second quarter (691,000), when the economy contracted at a 0.7% rate.

How can this be? To paraphrase the 1992 Clinton campaign, "It's the bonds, stupid!"

The massive sales of U.S. Treasury bonds to finance "stimulus", bailouts, and other government spending is sucking capital out of the private sector and destroying jobs. Once again, the October 6th BLS report tells the tale.

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