When Money Doesn't Help

It was reported this morning that, despite the massive spending by the federal government, the U.S. jobless rate has continued to increase and now stands at nearly 10%. More than 250,000 jobs were lost in September, more than the 200,000 that were lost in August as joblessness reached its highest rate since 1994, under the Clinton Administration. The government's response to this increase in joblessness is to extend the government stimulus package (aptly named since it seems to be doing little more than stimulating the government), and spend even more than than the nearly $800 billion already spent to rescue the economy. Evidently, the administration believes that if spending vast sums of money and increasing the government's role in the economy doesn't work, the solution is to spend even more money and increase the government's role in the economy even further; a sure way to reduce the deficit.

Amidst these grim statistics, it was reported that the health care industry added 19,000 jobs over that period. It is of note that one of the few bright spots in the economy is the major target of the Obama administration and the one that is claimed in most in need of reform.

The government doesn't create wealth, it absorbs wealth. I recall reading once that a definition of insanity is to keep doing the same thing and expect different results. While this definition was a source of amusement when I first heard it, it is no longer so. The private sector is the primary source of wealth in the economy, and it is being threatened with more regulation and increased taxes. But, I'm sure a man as gifted and intelligent as Obama, has figured out a way to expand the government, increase regulation, and raise taxes, while stimulating the economy at the same time. At least, let us hope so.