August 19th, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today blasted an Obama Administration proposal for yet another new make-work "stimulus" spending program:
"Even if Obama borrows yet more money from the Fed and China to expand the federal workforce by a million, it would only result in a 0.65 percent decrease in the nation's unemployment rate. With borrowing costs and benefits are included, it would cost taxpayers hundreds of billions of dollars with little noticeable impact on the nation's ailing economic health. There are more efficient — and profitable — ways to create jobs.
"To foster a robust economic recovery, the government need only get out of the way. The Fed has held interest rates so low for so long, that it is more profitable and safer for financial institutions to borrow at near-zero rates and invest in treasuries than it is to engage in traditional lending. Moreover, the nation's structural trillion-dollar-plus deficit steers more money than ever away from equities and into government bonds. That is precisely the opposite of what needs to happen to expand the economy.
"The weak dollar has also fostered higher consumer and producer prices, which has led to a commensurate slowdown in spending. A combination of smaller government and sounder money is needed to get our economy moving again, and free up resources for the private sector to create the jobs we need for a sustained recovery."