Arkady over at Indy Mind notes that Barack Obama has made it clear that his plan to stimulate the economy centers around make-work jobs that will cause nothing but inflation. Inflation is not a stimulus plan, it is a plan to make everyone poorer without them realizing it for a couple years. But if Obama wants to go the Jimmy Carter route, good luck with that.
At first blush, everything would appear to be quite rosy. People will be happily employed, new infrastructure will be appearing and everyone will be dancing in the streets. But guess who will be implicitly paying for all this? Answer - anyone holding money (you), because the value of your money will drop. As additional currency enters the market place your buying power will diminish. It will be an implicit tax on all citizens, but unfortunately it gets worse.
In conjunction with Obama's tax cut for the middle class, there will be a substantial increase in money - because once again these tax cuts must be paid for somehow, but virtually no appreciable increase in production/output.
Inflation will begin to erode our savings, reduce our purchasing power and weaken our currency. While the US has experienced double digit inflation before, during the 1970s for example, out of control inflation has power to destroy countries. A well known example is the Weimar Republic in Germany during the 1930s. Money became so inflated, German citizens were burning German marks to keep warm because the paper was worth more than the actual money!
Much more at the link above. There is one non-inflationary way to stimulate the economy. Cut income taxes on the capital providing class (otherwise snidely referred to as "the rich"). Cut business taxes. Cut capital gains taxes.
Obama promises to raise taxes on the capital providing class, punish business that shows too much of a profit, and increase the capital gains taxes. But hey, he'll print money and provide you with a job when your empployer fires you because Obama has made it too expensive to employ you. Sounds like a good deal, right?
If this wasn't all so idiotic and depressing, it would be highly amusing thanks to this sentence here, from Arkady's quoted material:
On Monday, President-elect Barack Obama said the measures would be "creating and saving 2.5 million jobs - jobs rebuilding our crumbling roads and bridges, modernizing our schools, and creating the clean energy infrastructure of the twenty-first century."
How do you compete with a guy who re-defines how employment is looked at. He's not talking about just creating jobs, he's talking about saving them!
One problem. How do you account for this? Suppose his policies create 1 million jobs. I say he failed. Obama says, "No, I saved 2 million other jobs. They would have lost their jobs without me and never found new employment."
He's clearly making shit up out of thin air, because there is no way in H-E-double hockey sticks that his tax increases could do anything but cause a net loss in jobs. But who can prove him wrong? Nobody. And since we no longer have any real journalists in this country to expose his future claims for the utter lunacy that they will be, he'll sail on by without question.
Pure genius.
Evil genius.
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