This exchange between Steele & Stephanopoulos highlights something that has been adequately addressed by the media's discussion regarding Obama-Democrat's "stimulus/pork package."
When the government spends money on short term projects, such as construction, work is created but not jobs. A job is something is stead work, something you can go to the bank with and use to get credit for a house or a car. A work is a temporary arrangement where you get paid for a limited duration, whether it be picking crops in the field or building a bridge. Any stimulus spending should keep this difference in mind.
The more I think about it, the less it make sense for the Government to spend money as a stimulus. Firstly, it takes money from taxes to spend, and in the process serves as the middle men. Be certain that the money it collects and the money doled out is not one for one. Secondly, the Government consistently acts in the short term, without sufficient thought to long term consequences. The government emphasis on works rather than jobs is a clear example of this. Thirdly, the taxpayer is in a much better position through his or her interaction with out capitalistic economy to direct spending dollars to what he, she, and the community needs as a whole. Fourthly, the increased in government spending for any stimulus package will only drive the deficit up, further limiting the availability of credits to the economy while increasing foreign ownership of our economy.
As such, the government stimulus should primarily be in the form of tax cuts. This will also have the added benefit of forcing the government to trim its budget. The primary spending of the government should be directed toward national defense.
The only stimulus spending at this point that makes sense to me are grants for research (both scientific, industrial and economic) that will lay the foundation for further discoveries.
HT: Right Wing Sparkle
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