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When President Obama took office during the depths of the recession, unemployment was 7.6%. Now, two years later, after trillions of dollars of Keynesian-style government spending to stimulate the economy, unemployment stands at 9.7%. Millions of jobs were lost as we simultaneously accumulated trillions of dollars in new debt. That is failure on a colossal level, but, unbelievably, Democrats call their Keynesian policies a success. Even more unbelievably, some liberals are calling for more of these same failed policies, as I noted in my previous post.
And Democrats wonder why they lost the elections in november. My liberal friend the Reverend thinks it has something to do with Fox News. Duh.
We now have a GOP-led House Of Representatives in power pledging to cut government spending and regulation. The GOP has pledged to shrink government, and wants to repeal ObamaCare. We also had a recent tax cut deal struck between President Obama and the GOP, a tax cut deal that liberals absolutely despised. It appears taxes will not be raised, and some will be cut further. Hopefully, the government spendathon will slow. The Keynesian irresponsibility will most likely end here.
In light of these anti-Keynesian new developments, what are economists predicting for 2011 ? Here's a prediction from CNNMoney.com:
After three years of economic pain, a growing number of economists think 2011 will finally bring what everyone's been hoping for: More jobs and a self-sustaining recovery.
"We're looking at some leading indicators on employment, and they're all flashing green lights," said Bernard Baumohl of the Economic Outlook Group, a Princeton, N.J. research firm.
Though most economists still expect a painfully high unemployment rate of about 9% at the end of this year, some think that stat masks more important signs of strength.
Economists surveyed by CNNMoney are forecasting an average of 2.5 million jobs added to the U.S. economy this year, which would be the best one-year gain in hiring since the white-hot labor market of 1999.
Of the dozen economists who responded, several of the more bullish are predicting more than 3 million jobs added -- about 250,000 jobs a month. Even the most pessimistic of those surveyed, David Wyss of Standard & Poor's, expects 1.8 million jobs to be added this year, roughly double the pace of hiring in 2010.
As I also stated in my previous post, jobs don't come from the government in a free society. Jobs come from the private sector. What the government should do is put policies in place to let the private sector thrive, rather than shackling the private sector as the liberals continually advocate and implement. Free markets with only common sense regulation, as opposed to government intervention and distortion of free markets, have worked pretty well throughout American history. They are how we became the world's economic powerhouse. There's no reason to change it all now, no matter what the failed Keynesians may believe. Why we would listen to them in the first place is beyond me. The number one example of Keynesian policy in all of American history is known as the Great Depression, hardly a shining example of economic success. It was the worst economic period ever. There's no reason to repeat that mistake, even though we already have to some extent. Let's stop now, and do what works instead.