Second Stimulus? How About a Growth Agenda?

By October 5, 2009Economy, General, Taxation

The Sunday morning news talk shows reacted to the 9.8 unemployment rate announced Friday with discussion of economic policy and the possibility of even a second stimulus bill. On ABC’s “This Week” former Fed Chairman Alan Greenspan said the unemployment rate would cross the 10 percent threshold, and Sen. Charles Schumer (D-NY) said the Senate would approve an extension of unemployment benefits.

Schumer added: “I’d be for extending the housing tax credit, which has helped get the housing market out of the severe depression it was in.” His counterart, Sen. John Cornyn (R-TX), agreed, saying, “ohnny Isakson of Georgia has been championing the — the tax credit for home purchases. Now it’s getting ready to expire, and it’s limited to $8,000 for first-time purchasers. His argument is, and I think he’s right, is that the housing inventories, or excess housing inventories are what are dampening the recovery.”

From Bill Kristol on Fox News Sunday came a broader analysis — and critique — of the Obama Administration, who charged that the president had “done nothing for job creation.” He extended the criticism to Congress, too:

What has this president proposed, what has Congress passed, that has anything to do with providing incentives for employers to hire instead of just for economic growth? There’s been no pro-growth agenda, even though we’re in a very steep recession.

And in fact, many of his pieces of legislation have been anti- growth. They increase the minimum wage. Guess what? Teenage jobs fell $300,000 in the — 300,000 jobs have been lost, teenage jobs, in the last two months ever since that increase in the minimum wage went in, just as economists would predict.

They’ve got a huge health care plan out there which is a burden on business. They’ve got a huge cap and trade proposal which is a burden on business.

They did “Cash for Clunkers” which was reported Friday moved auto sales from September to August, and September sales were back as low as they have been all year. It is not a pro-growth administration. And guess what? They’re not creating any economic growth.

To be fair, the Administration does talk about retooling the United States for a “green economy” with “green jobs,” but that’s a program of specific direct government spending, subsidies, tax incentives, disincentives and additional regulation with the theoretical payout many years down the road.

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