September 29, 2011
Obama's Jobs Act Wouldn't Work. Here's What Would.
President Obama is doing his best to blame his bad economic record on his Republican opponents. He has a proposed bill, the American Jobs Act, which would supposedly create jobs, so he bashes Republicans at every opportunity for not supporting it. Meanwhile, his potential Republican opponents have some much better alternatives that would create huge numbers of jobs without costing the federal government a dime. Obama's Jobs Act Obama's largest proposed expenditure in this $447-billion bill is a temporary cut in the Social Security taxes paid by businesses and households. But as Nobel Prize-winning economist Milton Friedman (the lead author's dissertation advisor) demonstrated, businesses and households base their decisions to invest and consume on permanent expected income. Temporary tax cuts such as these purchase votes but do little to increase hiring or spending. Another large expenditure would make grants to local governments to pay for 280,000 teachers,...(Read Full Article)