Monday, July 06, 2009

The Problem is Not Too Little Stimulus, It's Too Much Government

Amid talk of a "second stimulus package" (it would in fact be the third), it doesn't seem to dawn on anyone that it's the anti-business rhetoric, stances and regulations coming of Washington in that are creating more drag than any sort of stimulus could cure.

We have a situation where the people who hate business the most are in control of government, right when business needs the most support. Because the government doesn't create jobs, businesses do. And until businesses start to hire, unemployment isn't going to go down.

So while unemployment is skyrocketing we have a new energy tax passing the house, the promise of some beast of a health care plan encumbering businesses even more, increased taxes, and a array of new rules and regulations being issued almost daily. The rule of law is trumped for political favoritism, and the government is sinking money in money-losing industries and companies, propping up the losers at the expense of the winners. And in light of all these new burdens, businesses are just supposed to go out and hire more people? Why bother?

And why do the democrats think that getting consumers to buy a little more will help the U.S. economy? If consumer spending goes up a few percent all it means is that a few hundred more shipping containers arrive in ports on the West Coast from China and the lines get a little longer at Wallmart. All it does is put more money in the hands of the Chinese and maybe causes Wallmart to hire a few checkers. This is supposed to cure the economy's ills?

The wheels are coming off the car and the democrats in Washington are steering it towards a cliff.

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