Joe Biden and the "Stimulus": "We Misread the Economy" ... So Let's Do It Again!?


Posted by Sandra Fabry on Tuesday, July 7th, 2009, 8:12 AM PERMALINK

The following is cross-posted at www.fiscalaccountability.org:

As the economy continues to shed jobs, Americans continue to wonder just where those jobs the trillion dollar spending and debt package passed under the guise of economic "stimulus" would bring are. As CNN Money puts it:

a still-worsening economy has many wondering if stimulus is a bunch of baloney.

Stimulus-overseer-in-chief Joe Biden however shrugs the current situation off, simply saying that the administration, like many others, "misread the economy."

However, there wasn't anything to be misread. We and many others have consistently been pointing out that government does not create wealth, it merely moves it around, or, as economist Henry Hazlitt once said:

It [government spending] merely directs labor and capital into the production of less necessary goods or services at the expense of more necessary goods or services.

What's worse, even in light of mounting evidence that the "stimulus" isn't working, Biden refuses to dismiss the possibility of another "stimulus" package, answering George Stephanopolous's question "So, no second stimulus" this past weekend as follows:

No, I didn't say that, ...I think it's premature to make that judgment.

IBD Editorials has a fitting analogy:

This is a little like a medieval barber bleeding his patients to improve their health, then bleeding them again when they fail to improve. At some point we'll all wake up and use modern medicine. 

Unfortunately, the barbers in the administration are far from waking up. Better hold on to your wallets, they're going to come back and want to spend more of your money.

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