You can make corncob pipes, eighteen wheel trucks or microprocessors– but you can’t make jobs. Jobs are not a commodity or a service. They cannot be created independently through a job creating program. Rather they are the side-effect of a working economy. Trying to short circuit the economy with job creation programs is like trying to run a fruit orchard by neglecting the trees and instead buying fruit at inflated prices to resell to your customers at a lower price. It’s feasible, but not sustainable.
The government can promote job creation through subsidized education and training, but there is a ceiling on such efforts, since government programs still have to be paid for through taxation. It can encourage companies to do business locally through tax breaks, though this is an admission that the tax rates are an obstacle to job growth. But what it cannot do is create jobs out of whole cloth. Except for government jobs.
Just about anyone in the White House this term would have launched job creation programs. And like most such efforts they would have been a wash. But Barack Hussein Obama’s approach was different in that he did not even pretend to make the effort. His economic programs went by business friendly names, but invariably turned out to be concerned with only one kind of job creation. The creation of public sector jobs.
The spoils system has a long history in American politics, but it was never as spoiled as all this. There is no parallel in American history for the spoils system being used not just to rotate out supporters of the old administration and replace them with your lackeys, but to hijack the economy as your own spoils system to the tune of trillions of dollars.
Obama responded to an economic crisis by working to create two kinds of jobs. Government and union jobs. This was not about anything as simple as rewarding his supporters. The Black community got very little in exchange for supporting him. The Hispanic community similarly ended up with some token appointments, but not much to show for it. This was about shifting jobs from the private sector into the public sector and its feeders. To manufacture the types of jobs that feed money back into the Democratic party and expand the scope of the government bureaucracy.
No previous administration has as thoroughly disdained and tried to crush the private sector. But then none of them were nearly as clueless or irresponsible when it come to basic economics. The Democrats who had spent eight years mocking Reaganomics, practiced a Krugmanonics that treated money like an imaginary number. In Krugmanomics wealth is created through spending, and poverty is created by practicing wise fiscal management. The whole premise of Krugmanomics makes no sense, unless you have already decided that the private sector is a mythical beast with no room in the socialist bestiary.
This wasn’t even Keynesian, it most closely resembled the Bolshevik radicalism that destroyed the Russian economy, right down to the belated realization that only by assigning some limited role to the private sector could the situation be salvaged. Obama’s pre-election turn echoes Lenin’s New Economic Program. But like Lenin, Obama hasn’t embraced the free market. All he has done is tried to retreat to it after the spend and burn economics of his brightest radicals had ignited too much public fury.
Obama has only one idea. The same one idea that the left has beaten into the ground repeatedly. The monopolization of power. This monopolization is disguised behind organizations claiming to represent the people, community activists, unions and public interest lobbies, whose only message is the vital necessity of a government monopoly in every economic area of life.
It’s the old Soviet strategy writ large. Every red error brought back to life and pushed forward with cunning and brute force, but no understanding of why it failed last time around. The slower transition of Wells’ “Open Conspiracy” does not make them any better at running a country, than the radical armed revolts of the Bolsheviks did. Repeating the same mistakes at 1/20th the speed does not lead to a better outcome. Only to more chances to see that they are going the wrong way.