Soon we will hear President Obama set forth his new plan to turn this economy around. No doubt, he will call for more government spending to create jobs: another stimulus package that will put us, our children, and our grandchildren in even more debt than we currently are. No doubt we will hear Obama cry that it was Bush and the evil Republicans that caused this crisis even though he has been in office for almost three years and for the first two years his party was in complete control of both houses of the legislature and his party still controls the Senate.
To Obama, Pelosi, and Reid the answer to everything seems to be more government spending. It doesn’t matter what is the question. The answer is always the same: spend more money, tax the “wealthy,” and provide even more “tax relief” to their base, i.e., the 47% of the people in this country who do not pay any income taxes. As Joe Biden has said it is your patriotic duty to pay more taxes – except if you are the 47% of the population who pay no income taxes and presumably vote Democratic.
Well the figures are in and the monster stimulus package has proven to be a failure. In August there were zero jobs created. Remember when Obama and company said he needed “only” about $580 billion dollars in stimulus and if he got his wish he would reduce unemployment to less than 8%. Well, we have yet to see even 8%.
The stimulus package - notwithstanding what the NY Times and liberal media proclaim - has been a failure. An examination of how this money has been spent is telling. Here are just a few examples:
· $233,000 to the University of California to study why Africans vote. This sum yielded seven jobs for the U.S. and a net cost of $46,600 per job.
· $1.5 million to Penn State University to study plant fossils in Argentina. This created three jobs in the U.S. at a cost of $500,000 per job.
· $1 million to Arizona universities to study how ants work. This resulted in three jobs at a cost of $300,000 per job.
· $500 million to Solyndra labeled as “shovel ready jobs” to create solar panels. This company closed, so the money $500 million created no new jobs.
· $300 million to Johnson Controls which created 150 jobs. Net cost per job: $2 million.
· $500,000 to Clark County Nevada to plant trees. This created one full-time and one part-time job. The cost per job: $250,000.
I could go on and give more illustrations. The question is why would Obama and his economic advisers waste money on projects that yield such poor results. The answer, in my opinion, is to look at the background of Obama and his economic team. Obama has never had a real job in the public sector. Most of his economic team comes from universities, non- profit think tanks, or newspapers. The result is that these individuals have never heard or do not understand the idea of return on investment. To them the purpose of the government is to spend money without considering what they get in return. A CEO of a large corporation would never spend $1 million on a project that would yield only two or three jobs – but to Obama and his economic team you spend money lavishly no matter what the result. So be prepared for economic proposals that will cost billions and produce little in return.
No doubt when Obama gives his speech the NY Times and the liberal media will gush over his programs to spend more no matter what the result. These individuals have never understood the concept of return on investment and to them the answer always is to spend more no matter what the results.
Conservative Commentary by Jim Pirretti