Former U.S. House Speaker Newt Gingrich‘s latest Human Events column, after plugging his new book and an upcoming speech, reminds us of the false promise of government stimulus packages:
To be clear, many of the jobs funded by stimulus money are the type that any community would love to have. After all, who could object to the hiring of a music director?
But ask yourself, are these really the type of investments that will jump start the economy and set the stage for long-term economic growth? What happens when all the gates are painted and the engines are replaced? Will these jobs spur the creation of others?
Unlikely.
The story shows the fatal conceit underlying the Keynesian economics that are the basis for these kinds of stimulus bills: It assumes that government can spend your money more effectively than you can.
If there is any doubt of this arrogance, consider that another grant highlighted in the story provided $3.3 million to train people for 700 green jobs that are expected to emerge in the area over the next two years.
As you may recall, the Obama administration warned that without their stimulus bill, unemployment would rise above 8%. Now, with the stimulus money half spent, unemployment is at 10%. Considering this failure, it seems hard to believe the government is smart enough to know when and where 700 new jobs will emerge.
