Daily Archives: 10/09/2010

Does government spending create jobs?

Cafe Hayek

via Does government spending create jobs?.

Two Years in, Obama Still Has an Unemployment Problem

We need stimulus, and I think we have plenty of unemployed resources.  I don’t think we could take the fiscal impact of that much more debt, especially in  light of the debt crisis we see in Europe.

Megan McArdle

via Two Years in, Obama Still Has an Unemployment Problem.

Karl Smith Takes Brian Westbury to School

“They (the government) either had to tax it from somewhere or borrow it from somewhere,”

No, you most certainly can’t. However, we aren’t getting something from nothing. We are getting something by combining together unemployed workers and idle factories. Remember a recession is a time when we have increasing unemployment and declining capacity utilization.

We have factories without workers and workers without factories. Those are resources that could be used to produce things but are not being used. If we can get those resources to work will be able to make more things.

Grasping Reality with Both Hands/Modeled Behavior

via Karl Smith Takes Brian Westbury to School.