Labor Department numbers show that the Obama Administrations $787 billion stimulus was a flop. Instead of holding the unemployment rate at 8 percent or below, the jobless rate soared to 10 percent. Now there is discussion of second so-called stimulus, which politicians are calling a jobs bill. But making government bigger, this CF&P Foundation video explains, is a recipe for long-run stagnation and lower living standards, regardless of what the policy is named.
The normal cycle for post-war recessions lasts 12 months, and we’re currently 24 months + into this current recession. The recovery is bound to occur soon, and the President knows that the first Stimulus bill won’t be credited for helping to revive the economy, considering that most of the Stimulus I money got spent in 2009 and it helped increase unemployment, not steady or reduce it. If President Obama wants credit for rescuing the economy, Obama needs another bill — and another round of deficit spending.
Pay close attention to where Dr. Mitchell explains economic course corrections and how timing is everything. Mitchell gives the example of what Ronald Reagan did in the early eighties to reverse not President Jimmy Carter’s economic policies, but President Nixon’s policies which included wage and price controls.
You can find more of Dr. Mitchell’s videos on YouTube.