My new Fox News piece starts this way:
A friend of mine from Madison, Wisconsin writes:
Wow, this spending will make us wealthier!
President Obama and the Democrats’ “stimulus” package will increase the unemployment rate. The changes they propose will also make us poorer, with fewer, less productive jobs.
The most obvious explanation is the $36 billion in increased unemployment insurance benefits. Larger benefits at least for this year will encourage some people, who may be unhappy with their jobs, to be unemployed while they look for something better. Others will be a little more reluctant to take a new job when they are offered it. Unlike the rest of the “stimulus” package that is over two years, since the increased benefits are only planned for this year, the higher payments will increase unemployment this year and then start declining soon after the extension ends.
Yet, the “stimulus” package will do something else that will increase unemployment at least as much. Most of the new jobs will be for people who are currently employed. By moving money from places where it is currently being spent to places where the government wants it spent, you move the jobs also. But it takes time for people to move between jobs – that is called unemployment. . . .
A friend of mine from Madison, Wisconsin writes:
Somewhat related to your op-ed below, the lead story in this past Sunday's (2/1/09) Milwaukee Journal-Sentinel started by pointing out that the House version of the stimulus bill gives the Milwaukee Public School (MPS) system $88 million dollars for construction of new schools at a time when MPS has fifteen vacant school buildings and has no plans [currently] for new school construction. . . .
Wow, this spending will make us wealthier!
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New Op-ed up at Fox News: Obama's Stimulus Package Will Increase Unemployment
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Oleh
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