Morning Bell: Second Stimulus, Same as the First

Conn Carroll / February 05, 2010

When President Barack Obama was sworn into office, the U.S. economy employed 134.6 million people and the unemployment rate stood at 7.6%. In response to growing job losses, President Obama passed an $862 billion stimulus plan that his economic experts promised would help the United States employ at least 138.6 million people by 2010. Reality has not been kind to President Obama’s hope. Today, the Bureau of Labor and Statistics released its monthly jobs report showing the U.S. economy shed another net 20,000 jobs, leaving only 129.5 million jobs, almost 10 million short of the President’s promises.

Anticipating this bleak job news, the President announced in his State of the Union address last week: “That is why jobs must be our number one focus in 2010, and that is why I am calling for a new jobs bill tonight.” It is understandable why the President wants to call this new legislation a “jobs bill” instead of what it really is: his second stimulus. But that would mean admitting that his first stimulus completely failed, which both the objective evidence and the opinion of the American people show it has.

And why did the President’s first stimulus fail? For the same reason his second stimulus is destined to fail: Only the private sector in pursuit of opportunity can create jobs on net. The best we can hope from government is that it keeps to a minimum the jobs it prevents and the income and wealth it destroys. (more…)