By Bruce Collins, www.BruceDCollins.comI was recently in a discussion with a colleague at work who is liberal politically. His statement was that even though he did think that I was correct that a depression was coming (I told him this in January '08), he believed that at least his son would be ok because of the "FDR-like" jobs program that Obama was sure to implement.
Quite frankly, I'm not sure how this is going to be possible at this point with all of the trillions already printed and the gradual resistance to this irresponsibility growing in the public as well as political arena (many politicians who are siding with the President are starting to understand that the writing is on the wall with their careers).
However, this economy is going to get worse and I do suspect at some point, this administration will roll out a massive jobs program to: rebuild infrastructure, develop green technologies, begin an environmental brigade to ensure that their neighbors conserve energy. The last one, which was actually a plank of Obama's campaign, is very troubling to the cause of liberty. There is nothing like a 'snitch' in the neighborhood for a 'free' society of hope and changers!
However, even if all of these things were basically for the good of America (and obviously, infrastructure and new technologies would be), there is one fundamental problem with a jobs program.
None of these jobs are creating income for the federal government!
When we hire 50,000 new government workers to repair our roads and bridges, how does that reduce our trade deficit? It doesn't, because we are not actually selling/ manufacturing/ producing anything that can be sent overseas at a profit.
This is the problem FDR faced with his massive jobs program and, as a result, he actually prolonged the Great Depression.
The other point to be made about a massive jobs program is that it involves a massive amount of money. Where does this money come from? The Federal Reserve and we have to pay that money back to them- with interest!
So, in a jobs program, we create large amounts of liquidity, which cause prices to increase. We do allow more people to be employed- but at what cost? At the cost of robbing all of us through the inflation 'tax'! Poverty is equally divided among the people.
It really does not sound like a good idea once you peel back all the layers.
It also does not sound very good for the future of the US Dollar.
