States and cities will have the SAME problem with Obama's new proposed stimuli (ie, in his current 'jobs bill') as businesses do with government stimuli. These federal stimuli only last one year, then cities and states have to come up with their own funding to keep those jobs intact ... or they must(!) fire the people hired just a year prior. EVERYONE knows we're not going to get out of this debt problem within that year and be able to keep paying new-hires Obama wants state and local governments to hire now. Everyone(!) must know (after all, it's common sense) we won't be able to afford them next year so why is anyone for this nonsense?
Most states and localities already have a huge debt problem of their own! How can they take on NEW obligations arising in the form of new-hiring paid for by federal funds only lasting one year? IT MAKES NO SENSE PEOPLE! Well, it apparently does make sense to liberals but that's normal thinking for them and must make perfect sense somehow because they keep coming up with these cockamamy ideas. Personally, I don't get it. (Sorry liberals!)
Here's a more detailed explanation of why government stimuli doesn't work:
http://online.wsj.com/article/SB10001424052970204138204576600630985154132.html?mod=WSJ_Opinion_LEADTop
What this means is that the federal government is throwing our money away ... again ... when we can least afford it. Hello! It does some good for one year but after that we're back to the same problem as before. Therefore, it's a completely wasted effort. It would be better if the federal government 'spent' money on growing permanent jobs in the private sector. THAT will sustain and grow the economy but this SILLY STIMULUS SPENDING CLEARLY (BY ANY RATIONAL ANALYSIS) CAN NOT!
Business leaders see the folly in that and refuse to hire when a given stimulus lasts only a year. They won't hire someone only to have a very high probability of needing to turn around and fire them one year later after the stimulus wears off. Business leaders cannot run a business effectively when they can't keep employment reasonably steady and reliable. Why hire a person to start doing a task for you that you're pretty sure he own't be able to finish (because you'll have to fire him/her next year)? It's nonsense that business leaders understand and refuse to fall prey to.
Not so with state and local governments. They'll take the federal government 'handouts', boost hiring and then start whining next year when they can't afford to pay those new-hires out of the state/local pocketbooks. They'll either keep them and go further into debt or fire them and blame Republicans for heartless spending reductions. These short-lived stimuli do not produce lasting results and only frustrate the professionals in the fields Obama claims to be be helping. It's NONSENSE folks! Don't fall for it!
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