Albert Einstein’s famous quote “insanity is doing the same thing over and over again and expecting different results” would make the perfect slogan for President Obama’s U.S. job recovery strategy. When President Obama’s administration pushed through his democratic Congress his $787 billion stimulus plan he promised it would cause to create 3.5 million new jobs. The results of that stimulus plan as of December is a 10% unemployment rate and more than 4 million jobs have been lost in 2009, the worst year for job losses since World War II. The jobless rate that Obama’s advisers projected would peak at 8% in 2009 is currently at 10%.
"Business startups have dropped 18 percent. Expanding or startup companies are creating 25 percent fewer jobs than before the recession. That represents 1.9 million jobs not created in the first quarter of the year. Rather than investing in new projects that would create jobs, businesses have retrenched wherever they can. In other words, unemployment has risen mainly because of the new jobs that entrepreneurs haven't created.”
"First, the president announced another stimulus (though without calling it that). He wants to use hundreds of billions in unspent TARP funds on more government spending: more highways and "cash for caulkers" home-weatherization funds. And, despite Obama's rhetoric, most of his "pro-employment" proposal consists of such government spending to create more taxpayer-funded jobs. This government spending doesn't make new businesses more likely to succeed. So it won't encourage entrepreneurs to invest, unless they receive the federal contracts. Bigger government doesn't encourage entrepreneurs to create jobs. Worse, it discourages them. The more resources Washington consumes, the fewer entrepreneurs have to invest in their own projects. The academic research is quite clear that government jobs are created at the expense of a greater number of private jobs -- with the one reliable study (Algun et al, in Economic Policy, April 2002) suggesting that for each 100 jobs "created" in the public sector, another 150 private-sector jobs vanish. So it should surprise no one that private-sector hiring has remained low -- and unemployment has kept rising -- since the last stimulus became law.”
- block any federal tax increases until unemployment drops below 5 percent.
- freeze domestic discretionary spending at last year's level without raising taxes.
- reform the unemployment system to help people out of work find jobs, and
- take action to reduce regulatory and tax barriers that inhibit domestic job creation.