“We’re talking years – not months – before we see a decent recovery in the jobs market,” predicted Sung Won Sohn, economist at the Martin Smith School of Business at California State University. “It is going to get worse before it gets better.”
Source: Right Mind
Try to imagine if you will that the economy is perfectly fine. Everyone is working, business is booming, and last year the budget was nearly balanced. Get that picture in your mind. Now you hear that congress decides to double the size of every govt. budget. What would our reaction be? Well of course we would think this is utterly stupid. We would all be saying how bad an idea this is. The obvious question is if it is a bad idea when times are good why isn’t it an even worse idea when times are bad?
Here is the thing I have learned about the subject of economics…it is complicated. Yes the feds can hand out a billion here and a billion there and “create” jobs. However, what you don’t see are the jobs not created or loss in the private sector as a result of the federal spending. Here is something I am willing to bet on, there is no economic recovery in sight until market interventions stop. Things will get much worse before they get better and better is not going to look like it use to.