Keyensianism, the political philosophy that espouses more government spending (specifically debt spending) in order to get out of economic hardship, is continuing to fail. The Keyensian tactics promoted by the Bush administration (TARP, prescription drug benefit) and Obama administration (everything he’s done), continues to fail. Obama said that with his stimulus program, unemployment wouldn’t reach 8 percent. Well, we blew past that number and, though unemployment has come down from its peak, it continues to hover in the middle 9 percent range. Reuters reports:
U.S. employment growth ground to a halt in June, with employers hiring the fewest number of workers in nine months, dousing hopes the economy would regain momentum in the second half of the year.
Nonfarm payrolls rose only 18,000, the weakest reading since September, the Labor Department said on Friday, well below economists’ expectations for a 90,000 rise.
The unemployment rate climbed to a six-month high of 9.2 percent, even as jobseekers left the labor force in droves, from 9.1 percent in May.
And that’s just the number the government puts out. The REAL unemployment rate is much higher.
This is to show that with all of the last two administrations’ efforts to promote the economy (untold trillions of dollars) has been squandered and has not stimulate much besides the political elites’ bank accounts. Of course, their solution would be more of the same. My solution looks a little different: get rid of the Federal Reserve, minimum wage, and income tax. Do that and unemployment would be near zero.
For ways to combat the madness, check out: