Stimulus Is Destroying, Not Creating Jobs

James Sherk / September 16, 2009

Even as National Economic Council Director Lawrence Summers says the stimulus is working he also warned that he expects unemployment to remain unacceptably high for years to come. Unfortunately, Summers is half right: unemployment will probably stay high, but because of – not in spite of – the stimulus bill.

The Obama administration claimed that the government spending in the nearly $800 billion stimulus bill would “create or save” millions of jobs. And in one limited sense it will. The enormous increases in government spending will directly employ many workers. But that does not mean the stimulus will increase overall employment in the economy. Just the opposite in fact. (more…)