Monday, February 2, 2009

Making Work not Creating Jobs

Flipping through A discussion on Fox caught me. A rerun of Hannity. I avoid him, he make some good points but spins far far to much. Megyn Kelly said some thing to some effect that making work( bridges, roads, ect.) is not the same as making jobs. ( I looked for the vid, but I guess I am not that good)

That exactly sums up the problem of this stimulus. Perfect. A company gets hired to build a bridge. They hire a bunch of people. They have work. But if the company can't find more work they have to lay off those people. What are all the people hired going to do when all the "stimulus work" is gone. You have to bust business growth so people have jobs not just some work for a while.

I can see an argument that the stimulus work will help restart the cycle. But why not do it through more direct means like real tax rate cut, some stability in what Washington does and capital gains cut to move money off the side lines. Then spend on the roads and the thing we really need when things start coming back.

Giving work to the people in this amount is artificial. There is nothing to build new jobs on after the stimulus work is gone. Government can't create new jobs through spending just work. Except for those work in the government. Government can however get out of the way and let business create jobs.

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