Is this a good economic plan ?

Discussion in 'Economics' started by Range Rover, Nov 4, 2010.

Is this a good economic plan ?

  1. Yes

    1 vote(s)
  2. No

    1 vote(s)
  1. This thread is imported from the P&R section

    What Obama should have done with the 800 billion he dropped on stimulus was give private sector employers a full subsidy/taxbreak to any business who hired on a new employee up to 50k, for the entire employees wage, that would have created 16million jobs, but we will cut it in half cause there would have been government shit heads involved. That means you could create 8 million jobs in the private sector and pay 8 million bureaucrats 50k a year to monitor the situation. What business would not hire on a new employee for free? All you liberals talk about increasing demand by giving it to the consumer, what better way then this? Obviously there is still holes in the idea and most of the money would have had to go to bigger businesses but it was such an easy out if your going to spend the money anyways. Instead he chose to give out foodstamps, welfare, and entilements to people who dont work, a liberal principle which has never worked.

    I thought of that idea off the top of my head, when the stimulus was going on, and a crew full of big government liberals couldnt put 2 and 2 together, it isnt that they dont want to create jobs it is that their entire thinking is flawed, and they only want to create government jobs, which has been proven wasteful time and time again. These politicians have no interest in stimulating the economy, they are only interested in stimulating their vote count. All the stimulus money did was fund the special interests who helped them get elected.

    The left wing philosophy has been to get the money into peoples hands thus creating demand for product, (keynesian economics) in order to get the economy rolling. Except that they got the money into the hands of the consumer in the least efficient way possible, at a cost of 600k a pop. With my idea we fund them at a cost of 50k a pop provided every person hired on gets paid the max amount of the subsidy.

    Through the stimulus we get to keep funding these government employees long after the money runs out, with my idea we fund private sector employees at a cost of 50k a pop, in a 1 time transaction, and afterwords the people become taxpayers and are actually beneficial to the system. Certain rules would obviously have to be put in place, like keeping an employee on for 2 years to get 1 year for free, or monitoring businesses so they werent firing one employee to hire another. Maybe make it for net job creation. This would have increased productivity in the private sector, at the same time it stimulated demand, and it eventually would lead to drawing down the deficit as opposed to adding to it.

    Current unemployment is about 9.6% leaving 15 million unemployed, my plan would create 8 million jobs cutting the unemployment in half. Using conservative estimates, where it would have cost 2 dollars for every 1 spent, you could have had 1 bureaucrat making 50k a year per new job which came in.
  2. pspr


    But that wouldn't help the union bosses. Where's their cut? :D
  3. S2007S


    As I have said a thousand times before you cannot force jobs on an economy. This whole notion of spending money to create jobs is just crazy, and to think you can spend hundreds of billions of dollars to put 20 million underemployed back on the payroll is pretty foolish. Jobs are supposed to come naturally, through the creation of services, goods and manufacturing. You don't print money and spend it to put someone to work when there is no need for that person to be in a position to do something the economy doesn't need or want. Supply and demand takes care of that. It seems that this economy is being forced to show growth, that the GDP has to grow in the low single digits and that there has to be 4% unemployment rates and that the economy can never show signs of weakening. Thats the weak mentality of the individuals in this country who think markets only work one way, they don't, and that's the reason why were in this crisis were in now, is because of the foolish thinking by the big heads at the top of the chain. Wait till the next crisis comes around, they will try and fix that one with no success what so ever, just like this one were in now that they struggle so hard to fix. Let the pieces of the puzzle fall where they may and not try to find the fix, doing so only leads to more great problems down the line.