The Trick
You may have heard the Obama Administration touting the number of jobs they have saved or created through the stimulus and other economic policies. I am reminded of the old comedy routine:
Comic: (Stands alone on the stage snapping his fingers, then whistling while he clasps his hands and wiggles his fingers)
Straight man: (Walks on stage as if to pass the comic, sees him and stops) “What are you doing?”
Comic: “Keeping away the elephants.”
Straight man: “There isn’t an elephant within miles of here.”
Comic: “See, it’s working.”
There isn’t an economist around who knows how to count a job saved. There appears to be an informal survey among those who receive stimulus money to report how many jobs were saved by them receiving the funds. Do you think they may be encouraged to tell the government what it wants to hear? Here is my take on Obama’s performance.
Obama: “If we don’t approve this stimulus package immediatelywe’ll be in deep tapioca.”
Citizen: “What are you doing?”
Obama: “Saving jobs.”
Citizen: “It’s impossible to measure a job saved.”
Obama: “See, it’s working.”
The Treat(?)
Third quarter economic growth came in at 3.5%. That’s the good news and Obama is quick to credit the stimulus package that has hardly been spent. But if you look more closely at the numbers a large portion of the growth comes from:
- A sharp slowdown in inventory reduction. In other words, businesses don’t have much inventory left.
- “Cash for Clunkers” program which is over and whose stimulative effect will not continue
- The crushing effect of the debt that Obama is blissfully piling on has not been felt yet
Is it a real treat to a double dip to come?
BOO!!!
