26 January 2011

Five Empty Promises

(Note: this list was originally compiled by the fine folks at Zero Hedge)

Empty Promise #1: America Will "Out-Innovate" The Rest Of The World And This Will Create More Jobs

Innovation does not necessarily lead to job growth.  In fact, most innovation is intended to make more efficient use of current resources.  The most expensive resource in America is labor, so innovation may lead to net job loss, as production becomes more mechanized.

Really, the only way this claim is true is if there is growth in the service sector, which is a rather precarious position, to say the least.

Empty Promise #2: America Will "Out-Educate" The Rest Of The World And This Will Create More Jobs

Seeing as how there is no link between aggregate education levels and GDP, this claim seems tenuous at best.

Empty Promise #3: America Will "Out-Build" The Rest Of The World And This Will Create More Jobs

Government spending, on the whole, is systemically inefficient, so “out-building” the rest of the world simply means a net waste of resources.  How this actually leads to sustainable jobs is beyond me.

Empty Promise #4: America Will Become "The Best Place In The World To Do Business" And This Will Create More Jobs

Let me guess: Mr. Obama plans on cutting corporate taxes, getting rid of labor laws, and deregulating the economy?  I bet this actually is code for, “we’ll engage in more Keynesian stimulus packages and see how it plays out.”

Ultimately, he won’t address the fundamental problems, and so America will continue to stagnate.

Empty Promise #5: Barack Obama Pledges To "Take Responsibility" For Our Deficit Spending

Well, this would certainly be a refreshing change from his first two years (ZINGER!).  For this promise, I’ll believe it when I see it.

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