Will Obama's Job Creation Plan Reduce Government Dependency?

[cronxeh]

This plan will not work. 8% unemployment in 2009 here we come!

 

[mheslep]

As far as the gov't "creating" jobs (assuming this means gov't jobs), I'm concerned about a significant amount of Americans relying on the gov't in order work. ...

One in six now, working directly for some level of government.
http://www.independentsector.org/PDFs/npemployment.pdf

 

[mgb_phys]

Add in all those working in the defence industries, which are effectively government jobs, and it gets worse.

 

[Ivan Seeking]

It worked once as Roosevelt's Works Projects. The mistake that Roosevelt made was that he failed to capitalize the banks, which we have already done.

 

[drankin]

Add in all those working in the defence industries, which are effectively government jobs, and it gets worse.

But those are private contracts. My company does a lot of military aerospace work. I don't think that necessarily counts. I'm more concerned about working directly for Uncle Sam. Excluding military.

 

[mheslep]

Roosevelt only showed that the government could create government jobs, not that it created net new jobs for the country at large.

 

[drankin]

One in six now, working directly for some level of government.
http://www.independentsector.org/PDFs/npemployment.pdf

Thanks for the info, that's interesting. I don't want to see that percentage increase.

 

[Ivan Seeking]

Though the foreign purchased share of US debt is increasing, the majority of US debt is still held and purchased by US citizens and entities, and the majority of that US share comes directly through the investment of the US Social Security trust fund.
http://www.treasurydirect.gov/govt/reports/pd/feddebt/feddebt_ann2007.pdf

What matters is not who holds the debt we already have. It is who finances additional debt.

In any case, whether the capital investment pool diverted to the US government is domestically sourced or foreign, that capital is not then available to create jobs in the private sector.

If we didn't have a crisis, we wouldn't be borrowing the money, so it would have never entered the economy. Also, we can still print more money.

 

[mgb_phys]

But those are private contracts. My company does a lot of military aerospace work. I don't think that necessarily counts. I'm more concerned about working directly for Uncle Sam. Excluding military.

And they could survive without the government contracts?

I'm not saying it's bad - but the government paying Boeing to build the ISS or General Dynamics/Raytheon to build aircraft carriers is exactly the same government works project as paying people to build the Hoover dam.

 

[mheslep]

What matters is not who holds the debt we already have. It is who finances additional debt.

True, but the US still purchases a large chunk of its new debt offerings through the Social Security trust fund.

...Also, we can still print more money.

Printing more of a deflated currency won't buy any extra jobs.

 

[chemisttree]

He isn't really going to create 2.5 million jobs like his Nov. 21st Youtube announcement indicated.


He is going to create or save 2.5 million jobs. No measureable endpoint there... as usual for Obama.

President-elect Barack Obama today announced a bold initiative to save or create 2.5 million jobs in the next two years.

http://change.gov/newsroom/entry/2_5_million_jobs/

From the SAME page as the "create or save" quote...

I have already directed my economic team to come up with an Economic Recovery Plan that will mean 2.5 million more jobs by January of 2011 –

It's going to be a looong four years.

 

[drankin]

And they could survive without the government contracts?

I'm not saying it's bad - but the government paying Boeing to build the ISS or General Dynamics/Raytheon to build aircraft carriers is exactly the same government works project as paying people to build the Hoover dam.

I just don't want to see a significant increase in bureaucracy. Which equates to increased taxes and gov't dependency. Military projects are a security necessity. Infrastructure projects are also prudent. These we've always had.