Millions of Americans remain unemployed, while even more millions of job openings remain unfilled. One of the most unusual sights today is a business’s door front without a “Help Wanted” or “Now Hiring” sign. Amazon is adding 125,000 jobs during the Holiday Season, starting wage $18.00/hour. Restaurants are so desperate for help that some are closing an extra day or two each week. Car sales are through the roof, despite scarcity due to semiconductor shortages. Face it, the economy could be booming, right here in the Homeland. In fact, a recent email that is “going around” says:
To Whom it May Concern: This entire country is hiring! If you don’t have a job….you just don’t want one! The End!!!
Yet, our Federal Government ruling class is demanding more economic stimulus, under the guise of infrastructure investment. Do we really need it? True infrastructure, which is limited to a tiny proportion of the overall spending plans, would be helpful. That can, and should, be a stand-alone proposal.
Reasons for avoiding further stimulus include the following:
- Start with GDP or Gross Domestic Product. GDP is used to measure the total value of goods and services produced in the USA. GDP has been rising consistently and quickly, following last year’s setback due to COVID-19. From the plethora of available jobs listed nationally right now, I’d argue that not increasing our debt is a higher priority than injecting additional stimulus through excessive spending.
- Government Revenues are currently the highest in history, up 13% year-over-year. Raising more revenue, whether from adding make-work jobs or raising taxes, would likely slow our current economic recovery. Filling current job openings, while at the same time reducing outlays for Unemployment Compensation, results in higher net revenues.
- Arguments for new stimulus programs are not based on solid economics. Proponents of new social programs generally favor additional taxation over job creation. My view is completely at odds with theirs. To me, as the old saying goes, “If it isn’t broken, don’t fix it.” In fact, far from broken, our economy is right now in the “Goldilocks” comfort zone, neither too hot nor too cold.
- Congress has a never-ending supply of perceived and reported problems to solve, with a concurrent undeniable urge to “do something.” The best policy for right now is to do nothing.
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