Feeling Stimulated Yet?
A recent study by Timothy Conley from the University of Western Ontario, Canada Economics Department and Bill Dupor of Ohio State University Economics Department shows that the stimulus bill, passed in 2009 to "save" jobs and get the economy back on track, actually destroyed one million private sector jobs:
Our benchmark results suggest that the ARRA created/saved approximately 450 thousand state and local government jobs and destroyed/forestalled roughly one million private sector jobs. (Here's the PDF of the study.)What leftist doctrine doesn't seem to grasp is that public sector jobs, while employing people, exist only if the private sector can generate wealth. This study shows what common sense should have provided when the Pelosi/Reid Congress was in charge - Keynesian economics is a bankrupt philosophy that has the capacity to bankrupt entire countries.
Case in point is this graph, showing public sector jobs, service industry jobs, and goods producing jobs from 2001 to 2010. The pink line tanking at the bottom of the graph shows goods producing jobs lost pre- and post-stimulus. Worse than the initial job loss, is the lack of replacement jobs, now that the media assures us that the economy's "all-better-now-thanks-to-Obama."
(Click for larger image.)
This study, while not surprising, is disturbing. How long can our country stand by following such follies of economic failure?
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