Tuesday, February 23, 2010

Riddle Me This: Why is it so hard to understand that when the government spends money, it results in jobs and economic activity? Today I read somewhere about how hard it is to get the concept across, whereas the concept of cutting taxes is easy. And I heard someone on CNN explain that the money in the federal budget going to earmarks spending isn't much, but "tell that to somebody who's unemployed." What? I think most unemployed people are smart enough to wonder if they can get a job financed by that earmark, let alone discretionary spending as a whole, and especially something like the Recovery Act. The government spends the money-- so somebody gets it. Maybe it's a government employee, who buys stuff that means others are employed, and/or who performs a necessary service for society and the economy, like teachers, or maybe the money is spent directly in the private sector, employing people! Building stuff! Maintaining, staffing stuff! Why is this such a difficult concept????????
The Recovery Act creates jobs--as even the Republicans who were against it know it does, and want those jobs for their districts.
Update: The CBO now says the Recovery Act has employed up to 2.1 million workers, and added up to 3 million workers to the economy, reducing the unemployment rate by more than a point.

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