Stimulus is Only Stimulating "Economic Misery"
In a perspective today on the record level of job losses, an IBD editorial asks, “Will it ever occur to our leaders in Washington that what they’re doing isn’t working – and may actually be damaging our economy?”
It’s a rhetorical question, of course, as it goes on to describe, “The spectacular failure of the so-called fiscal stimulus to stimulate anything other than economic misery.” It’s misery driven by the concern that we’re on “a slow-growth path that will lead to permanently high joblessness, weaker income growth and fewer opportunities.”
Why are we potentially facing a future of permanently fewer jobs? The problem and solution can both be found in American entrepreneurship. Entrepreneurs are critical job creators and right now they have many reasons to be fearful about their ability to find an upside in the current economic climate. The government is meddling deeply in how the private sector functions. This means that the upside of starting a new, successful company is now much less clear that it’s been in the past. Even if an entrepreneur starts a home-run business, he or she still could confront “higher income taxes, a flood of stiff new regulations and the possibility of at least $2 trillion in new taxes related to cap-and-trade and a health care overhaul.”
Government talking heads repeatedly say that stimulus is working, “but no evidence shows that’s true. Stimulus has failed.” Based on the economy, and especially unemployment, “Time has come for a dramatic change of course.” According to this article, in order to save jobs the nation should look at how it can promote “startups and very small businesses … responsible for more than half of all new jobs.”
This Investor’s Business Daily editorial appears at Real Clear Markets in its article on stimulating failure.