Saturday, September 3, 2011

How Obama Is Going to Sucker Everyone in to Expand the Government by Using the "Jobs Problem"

I have already pointed out that most of current new unemployment is coming from the government sector (see here and here), especially the state and local level. This is a good thing. Government is not about reacting to consumer desires, and thus all government spending should be considered waste. Sadly, however, it is librarians rather than government police state goons that are being laid off.

That said, there are a lot of talking heads out there chattering about the current unemployment situation as a major problem. This is bad focus.The new unemployment is coming from the right place and it would be great if it continues in this sector.

Paul Krugman takes a look at this situation from the government spending angle and points to the declining government spending:

Do the dismal economic numbers really reflect the turn to fiscal austerity? I keep hearing people say no, because austerity hasn’t actually happened yet in America. But they’re wrong.

The fact is that the fading out of the stimulus, and in particular of aid to state and local governments, is already and noticeably leading to substantial withdrawal of government demand. Look, in particular, at actual government purchases of goods and services — governments at all levels buying stuff — which is what standard macroeconomics says should have the highest multiplier, since unlike transfers and tax cuts it is by definition spent rather than saved. Here’s the picture, showing changes in real spending over the previous year:

Krugman, naturally, then goes on to see this as a sorry state, while I see it as a positive.

So then you ask, how is the deficit growing if government spending is shrinking? It's the growth in entitlement payments, interest payments and, during various quarters, loans and "investments" made to the banksters.

The current focus on unemployment, as a negative, is a trap. Private sector unemployment has stabilized and is starting to climb. This is a positive Jobs are being now lost where they should be, in the government sector.

The last thing that's ever needed is a government jobs program, but especially now. When President Obama goes to the air waves on September 8, he will be using the buzz words that poll well, jobs and infrastructure, to propose expanded government reach even further. It will be for the direct benefit of union leaders and banksters.

It will be a waste of billions upon billions of dollars. As for the decline in government growth at the state and local levels, sadly that will reverse. Ben Bernanke's money printing will eventually result in individuals and corporations ending up in higher state and local tax brackets. It will result in more revenue to state and local governments, but instead of hiring back the librarians, what is likely to happen is that more goons will be hired to keep us all in line.

President Obama will use the current minor shrinking of state and local governments to scare the bejesus out of the country into thinking all employment is dropping. He will then use the fear as a way to grow the federal government even more, which will turn the economy into more of a mess.


  1. You actually think that we are not slaves? The tax livestock earn money by producing values only to be given to the tax farmers to be spent. Krugman is a farmhand/bagman (and cowardly...So he is in the indoctrination/propaganda division...He uses a pen instead of a gun) for the tax farmers.

  2. @ Anon 2:22 PM

    It's only a matter of time before the livestock get ID'd or tagged, aka the mark of the beast. From REAL ID to RFID tags to digital stamps....

  3. And he will use the new term for the DC Terrorist Organization.

    "Federal Family"

    Since the term "Gubermint" does not poll well.

  4. That's all Obama knows...Steal from the productive and hand the loot over to the stupid parasites that support him.

    That's *ALL* he knows!

  5. Excellent post Mr. Wenzel. Very insightful analysis. Forwarding this on to some friends now!

  6. Our communist/Marxist POTUS has his hand on the tiller. He will steer the good ship USA onto the rocks. His hand picked pirates will pillage, and plunder the nation into final bankruptcy.

    The best thing all of us can do is buy an ounce of gold. Everyone. This will send a big signal, a shot over the bow to the looters of our lives.

  7. Democracy - Steal from people who don't vote for you and give the loot to the people who do...whilst keeping a big transaction fee for yourself.

    Obama is a perfect democrat.

    Correct...He does not know anything else. He is WAY above his head as chief Parasite/Mafia Don of the USA.

  8. He is deliberately destroying the dollar as he and little Timmy TurboTax have been tasked to do. The NWO requires a single currency...a single language...a single weight and measure system.

  9. Good article, Wenzel. Here is an example of local politicians laying the rhetorical groundwork for the teleprompter in Chief.