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5. About those Jobs
In the face of still unpleasant unemployment figures (7.9 percent) the president told House Democrats he would be focusing on creating jobs. In typical Keynesian fashion, his argument for protecting government spending (or “investment” as he’ll likely call it) will focus on creating or protecting jobs for middle class Americans.
The president's Keynesian economic policies are really a cover for crony capitalism coming from the left rather than the right. The president will talk about eliminating tax policies and loopholes that benefit “the rich,” yet will push forward government loans or subsidies to the private sector in areas like green energy and high-speed rail, industries run by wealthy folks with a tendency to give significant donations to Democrats.
In fact, the Obama Administration’s regulatory pushes may make a bad situation worse. Reason Science Correspondent Ronald Bailey theorized that Obama’s environmental interests may result in proposals tonight like a national carbon tax, more Department of Energy regulations on emissions and energy use, and more spending on expensive solar and wind projects. All of these measures would actually increase the cost of energy and doing business in the United States, and those costs would filter down to the middle class and the poor, the same folks the president claims to be trying to help. If he’s truly committed to helping create jobs, the administration needs to stop trying to pick winners and losers and using competition from China (which is likely taking a financial beating in its own green energy efforts) as an excuse to line the pockets of his donors and union buddies with government money.