Obama's 4 Million Jobs: A Guide

Stimulus pacakge fails

The problem with the stimulus package is that its makers don't distinguish between the three kinds of output and how each one affects the economy differently. The three kinds are:

1. The goods and services that have no other effects on the economy. They are consumed, and do nothing further for the economy. Examples include the arts, sports, entertainment, recreation, beautification toys, luxuries, most environmental projects, bureaucracy, and most government jobs.

2. The goods and services that contribute some wealth back into the economy. When they are purchased, they have long useful lives that help people produce wealth. Examples include education, roads, houses, business buildings, tools, computers, police, fire protection, emergency services, justice, corrections, medicine, and retail sales.

3. The goods and services that multiply to make more work than the work used to produce them. These include food and drink, clothing, transportation, job skills training, agriculture, energy production, and engineering.

Obama's plan includes too much of #1 and not enough of #3.

Larry Robinson of IN @ Feb 22, 2009 16:15:43 PM