Stimulus?

Steve Chapman writes:

Washington, D.C. is a place where delusions go to thrive. That explains why Congress and the president are now agreed on remedies that will not work, expending money they do not have, to fix a problem that may not exist.

Read the details here.

Short-Term vs. Long-Term Policy

From Fox News Sunday:

WALLACE: But, Mayor, let me just say that even if you passed -- even if you were president now and you put all of those in with the state of the union later this month, those wouldn't help in the short run. Those wouldn't help for a couple of years.

Senator Hillary Clinton, for -- let me just say Senator Hillary Clinton has just proposed a $70 billion package which would send money to the states to help stop foreclosures, help with heating oil, extend unemployment benefits.

She and some people at the White House are talking about tax rebates right now. I mean, that's the kind of short-term stimulus you need, isn't it?

GIULIANI: No. The kind of short-term stimulus you need is to present the picture, realistic picture, of an economy that's going to grow.

And then the private sector and the investment from the private sector -- the multiples of money that that would involve dwarfs anything that you're talking about.

Here, look at it this way. You're a business. You're making a decision about where to place your business, a business that you're going to have there for the next 20 years to 30 years.

You're looking at a picture of the United States of, you know, Democrats possibly getting elected, talking about raising taxes 20 percent or 30 percent, talking about building the central government, regulating more.

You look at another country where the corporate tax rate is considerably less than the United States. The other tax rates are going down. And they're talking about putting more back into the private sector. Where do you put your business? Where do you make your long-term investment? Where do you put your money? How do you evaluate the currencies? If the government in Washington presents the picture of immediately moving toward pro-growth policies, you have growth right away.

A lot of the movement of money, as you know, not just in markets but in general is a prediction of not just where the economy is today, but where the economy is going to be next year, the year after, the year after that.

So by announcing strong pro-growth policies, you can affect that decision, and that brings more liquidity. It brings more money. It brings more investment into your economy.

That's why the Club for Growth pointed out that my tax program would be one of the best things that you could do to strengthen the economy right now and create growth.

It's always good to see that there's someone out there more concerned with long-term growth than short-term micromanagement of policy.

Unexpected Upward Revision in Jobs Raises Risk of No Recession

Gene Epstein writes at barrons.com:

Revision was the watchword in the September jobs report. For August, the Bureau of Labor Statistics reported a statistically insignificant decline of 4,000 in non-farm payrolls, prompting the New York Times to run the headline, "Unexpected Loss of Jobs Raises Risk of Recession." Not for the first time, and probably not for the last, the loss of 4,000 has now been revised to a gain of 89,000. Imagine the corrected headline: "Unexpected Upward Revision in Jobs Raises Risk of No Recession."

Read the rest here.

Most Americans Dependent on Taxpayers

From the Christian Science Monitor:

Slightly over half of all Americans – 52.6 percent – now receive significant income from government programs, according to an analysis by Gary Shilling, an economist in Springfield, N.J. That's up from 49.4 percent in 2000 and far above the 28.3 percent of Americans in 1950. If the trend continues, the percentage could rise within ten years to pass 55 percent, where it stood in 1980 on the eve of President's Reagan's move to scale back the size of government.

With the "boomers" seeking to bankrupt their children through increasing entitlements and Democrats throwing money at anything they can see, this number will only grow.