Make-Work Is Wasteful

My final column for the American Institute for Economic Research is "Make-Work Is Wasteful."

TGIF: Obama's Economics Lesson

President Obama apparently thinks that until the latest recession, no business realized it might reduce its workforce by substituting machines and other high-tech devices. When asked by NBC’s Ann Curry why he hasn’t been able to convince business owners to hire more people (as if the question makes any sense), Obama explained:

There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with a lot fewer workers. You see it when you go to a bank and you use an ATM, you don’t go to a bank teller, or you go to the airport and you’re using a kiosk instead of checking in at the gate.

It is astounding to hear Obama invoke the old argument that technological advances create permanent idleness among workers. I haven’t heard that one in years.

Read the full TGIF here.

TGIF: Snow Job Summit

What are the odds that yesterday’s White House jobs summit will lead to the creation of any real jobs? The summit was based on the magic theory of government: Say the right incantations and reality will be reshaped according to one’s desires. There are no economic laws. There is only will. If we all think good thoughts and exude the spirit of cooperation, we’ll end these hard times and get the economy moving again.

This is the sign of a primitive mentality. In reality economic laws exist, reality sets limits, and good feelings can’t create prosperity out of nothing, especially when government stubbornly stands in the way.

The rest of this week's TGIF is here.

Unemployment Keeps Rising

Unemployment hit 9.8 percent last month (a conservative estimate, to be sure). The Obama administration once said it would approach 9 percent -- if the "stimulus" did not pass. With the "stimulus" it was supposed to be less than 8 percent by now. (See graph.)

When do we declare the "stimulus" a failure? Huh?