The White House last year released a supposedly sci entific analysis that claimed to show that adopting the "stimulus" bill would cut unemployment. Indeed, the report specifically estimated that the unemployment rate today would be down to 7.5 percent.
Something obviously went wrong. The actual unemployment rate is 9.5 percent, a statistic that doesn't include the millions who've given up looking for work or can only find part-time jobs. What were President Obama's biggest mistakes?
Part of the problem was a misplaced faith in Keynesian economics -- that is, in the discredited notion that politicians can borrow money from the economy's right pocket and increase prosperity by dumping money in the economy's left pocket.But the bigger stumbling block is the folks in the White House seem to have no clue how the real-world economy works. Critics have noted that the Obama Cabinet sets the record for the lowest-ever level of private-sector experience. That doesn't necessarily mean people who don't understand how and why jobs are created -- but that seems to be the case with this administration.
Thursday, July 22, 2010
Why the chronic unemployment?
I've hit on a number of items in the past. But here is an excellent piece detailing all the issues that are causing our chronic unemployment problem..................