Unemployment And Jobless Numbers Go Up If Stimulus Extension Refused

By Victor Hatley on September 27, 2010, 6:35 am Posted in Finance News

If one of the most successful job creation programs in the stimulus act isn’t extended by the end of next week tens of thousands, stand to lose the job that the program created. The chairman of the Republican Governors Association, Haley Barbour, dubbed the program “Welfare to Work,” has been so satisfied with the results of the program, he is hoping that it will be extended for at least an additional month, due to how long it took his state to be approved for the funding. Republicans are again playing the “Naysayers.”

The Republican Governors Association Satisfied

Most Republican (and Democrat) Governors are ecstatic that the program has created so many jobs in their states, and don’t want to see it end. In Illinois the program has created over 26,000 jobs. Pennsylvania has managed to get 12,000 people back to work using the program and funding. This pales in comparison to the total jobs that will be lost nationwide if congress refuses to extend the program funding. Economists are saying that the subsidized jobs are the best manner to stimulate economic and job growth, as there is no overhead or profit margin, as there would be with the government contracting to private companies.

Republican Governors Love It, Legislator Hate It

Democrat, Phil Bredesen, Gov. of Tennessee said “I thought we were able to make very efficient use of these funds, with the money not going off into the ether to create jobs on a spreadsheet, but going where you could go find people who had jobs today who did not have them before.” And many Republican Governors agree with him, but the Republican federal legislators aren’t so amenable. Most Republican lawmakers agree with economist Lew Rockwell, who had this to say “If you are going to create and retain uneconomic jobs, there is really only one way to do it: government. The government takes money from the private sector to throw around in inefficient ways, regardless of whether the job is worth doing in the first place.”

 

One Tennessee mayor, Robby J. Moore of Lobelville, called the program a band aid, but wanted it to continue, he said “It was very much a Band-Aid, and now the Band-Aid is coming off.” We just hope that the bleeding of the jobs doesn’t cause them to move overseas.


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