A recent article says that poverty levels in the U.S. are expected to reach 15% in an upcoming report, the highest in nearly 50 years. Obama has been saying more often lately that the key to reducing poverty is creating jobs. He is correct! But temporary stimulus jobs created by the government shifting money around in the economy is NOT the way to do it!!
John Maynard Keynes has been proven time and time again to be WRONG! His theory of massive government deficit spending to try to reduce the effects of recessions has one again become a catastrophic failure!
The only jobs that can bring us out of a recession and reduce poverty must be a result of long-term investment into capital projects that raise levels of production. Businesses at all levels of the supply chain must be convinced that the orders coming down the chain are NOT temporary but recurring sales.
Business leaders do not make long-term decisions like full-time hiring, expansion, inventory level increases, etc., just because there was a blip in the sales this month. These ridiculous infrastructure projects of FDR's and Obama's have NO effect on long-term job creation.
Full-time jobs are created by employers who have confidence that their sales are up PERMANENTLY. Sure, companies that receive part of a $700 billion stimulus package are going to be thrilled, but they will NOT use this to create jobs. That would be insane. They'll use it to pay down debt, fix some delayed maintenance issues, maybe repave the parking lot, or put it in the bank.
You want to create jobs across the board? Reduce or eliminate the corporate income tax, personal income tax, sales tax, or any of these other taxes that serve no purpose other than to shift wealth out of the private sector and into the hands of government bureaucrats.
I'm sick and tired of public school teachers whining about there not being enough money in the schools. It's all a bunch of bull! I've had it with them guilting everybody into agreeing to yet ANOTHER increase in their property taxes this year. Nearly everyone in the private sector has been affected negatively by this recession: lost jobs, salary cuts, benefit cuts, salary freezes, hours cut, etc. When's the last time a TEACHER suffered from any of these things? Ha!
I'd like to see one of these greedy teachers explain to little Sally the REAL reason why her parents both lost their jobs this year: "Sorry sweetie, I know your parents are unemployed, you won't have a Christmas, you've lost your health insurance, your grandmother is moving into the Projects, and you're about to lose your house and all, but I really need to retire with a full pension and free health care before I turn 47."