After watching the beginning of the below video, I’ve come to realize that our central planning President still does not understand the economy. In this video, President Obama touts new controls over Wall Street, an extension in unemployment benefits, and a reduce of waste in government. I am going to be quick and to the point as to why the government is not thinking outside of the “central planning” box.
On Jobs. Unless the government plans on hiring all of the unemployed people in the United States, it cannot create jobs. The government can either allow businesses to create jobs or obstruct them from creating jobs. Health care legislation, tax cut expirations, and high deficits/debt all signal an increase in the cost of business (by higher taxes). Any competent business owner is not going to begin hiring under such uncertain conditions unless they have the increase in sales.
On the Unemployment Rate and Lending. In today’s video, John Harwood mentions that the government believes that a small business lending act will help create jobs. Apparently, businesses have to borrow money in order to hire employees. Additionally, it is being considered a “success” that unemployment benefits were renewed. I guess the fact that more than 14 million people are still unemployed can currently be overlooked.