Free Markets, Free People
It might come as a surprise to some, but the bill Democrat Representative Jan Schakowsky (IL) plans to introduce as a jobs bill is long on borrowing money we don’t have and funneling that money through ineffective government programs. Apparently they still don’t get it.
The member of the Congressional Progressive Caucus would spend $227 billion dollars and, best case, create 2.2 million jobs (or, again best case, a little over $108,000 a dollar a job). Her plan reads like something from the Franklin Roosevelt administration:
Under her plan, the following policies would be implemented:
- The School Improvement Corps would create 400,000 construction and 250,000 maintenance jobs by funding positions created by public school districts to do needed school rehabilitation improvements.
- The Park Improvement Corps would create 100,000 jobs for youth between the ages of 16 and 25 through new funding to the Department of the Interior and the USDA Forest Service’s Public Lands Corps Act. Young people would work on conservation projects on public lands including the restoration and rehabilitation of natural, cultural, and historic resources.
- The Student Jobs Corps would create 250,000 more part-time work study jobs for eligible college students through new funding for the Federal Work Study Program.
- The Neighborhood Heroes Corps would hire 300,000 new teachers, 40,000 new police officers and 12,000 new firefighters.
- The Health Corps would hire at least 40,000 health care providers, including physicians, nurse practitioners, physician assistants, nurses, and health care workers to expand access in underserved rural and urban areas.
- The Child Care Corps would create 100,000 jobs in early childhood care and education through additional funding for Early Head Start.
- The Community Corps would hire 750,000 individuals to do needed work in communities, including housing rehab, weatherization, recycling, and rural conservation.
Perusing the list, there’s absolutely no possible threat of waste, fraud and abuse, is there? 750,000 people hired to “work in the community” doing “recycling” and “rural conservation?” “Weatherization”? Nope, no chance of waste, fraud and abuse, none at all.
Of course, nowhere in there other than initially, is there any mechanism to fund the “jobs” created in the future. They’d last as long as the $227 billion did and then the jobs would go away. That would include the teachers, police officers and firefighters. Those are simply in the plan to make it sound more acceptable. If the localities who will get the teachers, police and firefighters funded by this boondoggle can’t afford to hire them now, chances are very good they won’t be able to keep them when the money runs out.
The jobs listed are also mostly make work jobs on make work projects that might be nice to have done, but aren’t going to contribute to the private economy (the actual engine of the economy) in any meaningful way. Nothing is really “produced”, no wealth is created, no revenue – other than salaries – is taxable.
And finally, which health care providers is “Health Corps” going to hire? There’s a shortage of health care providers in the private market. Why in the world would they leave that to work for government in “underserved rural and urban areas?”
It is clear with Rep. Schakowsky’s proposal that the Progressive side of the aisle still don’t get it. How much louder do the American people have to shout to be heard?
Cut spending. Make government smaller. Make government less costly.
Rep. Schakowsky and the Progressives are still stuck in the 20th century. We’re already living the Raw Deal thanks to spendthrifts like her.
Funny what actually producing something – a budget plan to bring government deficits and eventually debt under control — will see the other side produce. After a year in which the Democratic Congress was unable to produce a budget, suddenly the Progressive Caucus in Congress has an answer to the Ryan budget proposal produced by Rep. Paul Ryan (R-WI).
And, as you might imagine, it is, definitely snort worthy. However, if you remember what group I said had produced it, it shouldn’t surprise you. Phillip Klein brings you the “good news”:
Next week, the group of progressives plans to introduce its alternative to Ryan’s proposal, called "The People’s Budget." Based on an advanced peek provided by a senior Democratic aide, it promises to return the nation to surpluses by the end of the decade and reduce the debt, only with a much different approach from Ryan’s.
To extend the long-term solvency of Social Security, it would propose dramatically increasing payroll taxes on both the employer and employee side, and funneling the money into even more generous benefits.
Payroll taxes are economically destructive, because they make it more expensive for employers to hire new workers, meaning lower real wages and higher unemployment.
Yet the tax increases wouldn’t end there. The People’s Budget would rescind last year’s tax deal to raise rates on higher income levels, boost taxes on capital gains and dividends, increase the estate tax, institute three "millionaire tax rates," with the highest reaching 47 percent, tax corporate foreign income, impose a "financial crisis responsibility fee," and institute a "financial speculation tax."
Overall, taxes would rise to 22.3 percent of the economy, compared with 18.3 percent under the Ryan proposal.
The plan would also build on Obama’s most notable initiatives. It includes an additional $1.45 trillion in economic stimulus spending. On health care, the plan would add a government-run plan, or "public option," to Obamacare and have the government negotiate drug prices.
Yet while other parts of government would grow, the defense budget would be gutted. The proposal would "reduce baseline defense spending by reducing strategic capabilities, conventional forces, procurement, and R&D programs."
File this under “they just don’t get it”, for starters. And, if you didn’t get a horse laugh out of the “People’s Budget” (VolksBudget?) then your sense of black humor is a bit lacking. These fools, and I haven’t a better word for them, would absolutely ruin the country if given an opportunity. They’re ignorant of economic, ignorant of reality and just flat dangerous. If nothing else, the GOP ought to make this available far and wide – this is what these freaks will do if they get control of Congress again. If you think the debt and deficit are bad now, let this crew pass their “People’s Budget” and we’ll all wave goodbye to life as we know it.
However instead of waiving this off, people need to study these two contrasting approaches to government advance by Paul Ryan and the Progressive Caucus.
Oh, and Megan McArdle, doing some back of the napkin figuring, isn’t buying the “22.3%” of the economy nonsense:
A 47% federal tax rate on top incomes, plus increases on estates, capital gains, and dividends, and all you get is . . . 22.3% of GDP? A bare 1.3% above the collections envisioned by Simpson-Bowles?
And she asks for a little honesty:
No, if you want to get the budget under control without meaningfully cutting into entitlements, you’re going to need to hike taxes substantially on the middle class. I’m waiting for the first politician to say this out loud.
Well, it won’t be the Progressive Caucus, you can count on that. Instead, they’re all for making entitlements even more generous. National defense – we don’t need no stinkin’ tanks.
Meanwhile the left has been savaging Ryan’s proposal (and so far the “People’s Budget” is the best they can throw back). But serious people, like Charles Blahaus of e21 find it pretty refreshing (read the whole thing). And he makes a point or two I’ve been making recently:
Yesterday’s release of the draft Ryan budget offers a vision for repairing the federal budget. Thus far, this vision for fiscal repair remains the only serious legislative alternative to fiscal catastrophe. President Obama’s submitted budget, by contrast, contains no significant effort to repair the federal fiscal outlook. The Congressional Budget Office (CBO) has shown that it would leave federal finances on a clearly unsustainable trajectory. Health care reform, long touted by some as being the real key to fiscal reform, turned out to mean expanding federally-subsidized coverage rather than fiscal correction. Last year the Congressional Democratic leadership declined even to pass a budget at all. If there is a responsible left-of-center alternative to the Ryan proposal, we have yet to learn what it is.
Well sir, it won’t be the People’s Budget for the People’s Republic of Fantasy Land, I’m sure of that.