Obama Labor Secretary Hilda Solis appeared on CNBC. She was asked about the so-called Fiscal Cliff results:
REPORTER: How many jobs do you think the fiscal cliff embarrassment cost this country?
SECRETARY SOLIS: You know, all I can tell you is that we’ve helped to provide, I think, some stop gaps. And what I think about is, those 2 million people that would have lost their unemployment insurance. Because think about it, all that money that goes out in terms of what’s being spent by that unemployment check helps to generate two additional dollars back in the community. Everyone continues to keep their jobs. I can’t give you an exact figure, but I’ll tell you just by the movement that the President made, we’ve saved millions and millions of jobs.
This is called “Government Math”: 1 + 1 = 4. If you pay people not to work, every dollar they spend through money given to them by first taking it from other people will result in “two additional dollars back in the community.” How is this possible?
In Washington, there are no math rules. Government officials believe they are gods. They believe they can turn stones into bread and create wealth out of thin air. It’s a great business to be in.
Ms. Solis needs to explain how taking money from workers, sending it up the bureaucratic chain of command, losing billions of dollars along the way, and giving it to non-workers creates jobs and increases revenue? If workers got to keep more of the money they earned and could spend and invest it, jobs would be created and we wouldn’t need to use confiscated money to pay for people who are not employed.
But if politicians followed mathematical laws like 1+1=2, then they couldn’t buy votes. It’s only by violating the rules of mathematics and engaging in theft that they can buy votes to stay in power. Once in power, they can continue to manipulate the mathematical universe to their own perverse end.
The reporter wanted to know what impact the Fiscal Cliff impasse had on job creation, a point missed by Ms. Solis. The better question to be asked should have been the effect that President Obama’s previous economic policies are having on job creation.
A December 31, 2012 USA Today article points out that the healthcare law may result in less hiring in 2013.
“Many businesses plan to bring on more part-time workers next year, trim the hours of full-timers or curtail hiring because of the new health care law, human resource firms say.
“Their actions could further dampen job growth, which already is threatened by possible federal budget cutbacks resulting from the tax increases and spending cuts known as the fiscal cliff. ‘It will have a negative impact on job creation’ in 2013, says Mark Zandi, chief economist of Moody’s Analytics.”
Liberals believe that skimming the cream from the most productive members of the business community will grow the economy. What liberals always miss is the billions of economic decisions that millions of people make every day that are based on price.