Thursday, January 7, 2010

Harbeson on why the "stimulus" must harm the economy

From Debbie Harbeson in the Jeff/NA News-Tribune...

Debbie wrote earlier about the the federal government’s stimulus Web site. A reporter at the paper followed up with a six-part series on its local impact. Harbeson revisits the topic by commenting on that series:

I noticed that many of the reported jobs created are government jobs. I don’t understand how this helps. A government job is not productive in the sense that any new wealth occurs, so the private sector has the burden of supporting yet another government employee. This means less money is available for private businesses to hire the productive labor which pays for the government job....

Some of the stimulus funds spent on new local government jobs will be paying salary costs for the first three years. This is bad enough because in three years the money will have to come from somewhere else. But what’s even worse is the government-mandated requirement that these jobs can’t be eliminated for at least 10 years!

By creating these government jobs, citizens have just been forced to pay for them for seven more years after the stimulus funds run out. It doesn’t matter if our local community decides something else is more important in a few years. We’ve just been completely handcuffed by the decisions of a few politicians....

Some of the reported jobs were in the private sector and upon first thought this sounds better. However, looking closer, these jobs created are completely dependent on the government funding to exist....

I also noticed that stimulus money was spent locally on giving raises to people who already have government jobs. This “stimulus” only increased future costs for those jobs that already existed before the stimulus at a cheaper price....

1 Comments:

At January 8, 2010 at 9:19 PM , Anonymous Anonymous said...

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