Comments on: Ragman’s Rants – Fiscal Conservation http://www.aviewfromthefence.com/2009/02/10/ragmans-rants-fiscal-conservation/ If someone doesn't share your view, doesn't mean that they're wrong Sun, 25 Jul 2010 11:11:25 +0000 hourly 1 By: Dobie http://www.aviewfromthefence.com/2009/02/10/ragmans-rants-fiscal-conservation/comment-page-1/#comment-112 Dobie Wed, 11 Feb 2009 05:02:37 +0000 http://www.aviewfromthefence.com/?p=34#comment-112 Ragman, I understand what you are saying, and the fiscal conservative in me wants to agree - but I can't. You have accurately described the situation. Some people are losing their jobs, and even those that aren't are scared enough of what is coming to cut down their spending. That means that companies are making less, so they have to cut their costs - including the biggest cost for most companies: people. So now less people have jobs, and the ones that still do are even more scared ... The vicious circle is pretty easy to see. And to make it even worse, just at the time the most people are trying to access the safety net through such things as unemployment benefits, food stamps and Medicaid - the states that provide these services are seeing their tax base erode as sales and income tax revenues plummet. If the federal government did the financially prudent thing - reduce its costs (including the number of people it employs) - it would simply add to the problem. Something has to break the cycle. Given this situation, I have to agree with Obama that something needs to be done to create jobs. I don't think this stimulus plan with provisions like a tax cut that would put $20 to $40 in a person's pay check is the best we can do. I think that jobs can be created a lot more efficiently than what this plan thinks it can do (let alone what it actually does). Obama keeps saying that the plan will create or save four million jobs. The cost of the plan is approximately 820 billion. That is a cost of $205,000.00 per job. That is simply ridiculous. A plan that would give a tax credit of $50,000 to every company for each person it hires would cost 200 billion for the same number of new jobs. Now I know the stimilus plan is doing more than trying to create jobs. In fact it seems to be trying to do everything for everyone (money for infrastructure to create jobs, money to state governments, more money for food stamps, etc) - to the point I have to wonder if it will actually accomplish anything. But we have to try. To do nothing is not an option. Ragman,

I understand what you are saying, and the fiscal conservative in me wants to agree – but I can’t. You have accurately described the situation. Some people are losing their jobs, and even those that aren’t are scared enough of what is coming to cut down their spending. That means that companies are making less, so they have to cut their costs – including the biggest cost for most companies: people. So now less people have jobs, and the ones that still do are even more scared …

The vicious circle is pretty easy to see. And to make it even worse, just at the time the most people are trying to access the safety net through such things as unemployment benefits, food stamps and Medicaid – the states that provide these services are seeing their tax base erode as sales and income tax revenues plummet.

If the federal government did the financially prudent thing – reduce its costs (including the number of people it employs) – it would simply add to the problem. Something has to break the cycle.

Given this situation, I have to agree with Obama that something needs to be done to create jobs. I don’t think this stimulus plan with provisions like a tax cut that would put $20 to $40 in a person’s pay check is the best we can do. I think that jobs can be created a lot more efficiently than what this plan thinks it can do (let alone what it actually does). Obama keeps saying that the plan will create or save four million jobs. The cost of the plan is approximately 820 billion. That is a cost of $205,000.00 per job. That is simply ridiculous. A plan that would give a tax credit of $50,000 to every company for each person it hires would cost 200 billion for the same number of new jobs. Now I know the stimilus plan is doing more than trying to create jobs. In fact it seems to be trying to do everything for everyone (money for infrastructure to create jobs, money to state governments, more money for food stamps, etc) – to the point I have to wonder if it will actually accomplish anything.

But we have to try. To do nothing is not an option.

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