LAMBRO: Obama’s duct-tape economic plan

Recycled ideas cast a bleak future

Question of the Day

Should Congress make English the official language of the U.S.?

View results

President Obama’s second-term wish list to jump-start his stalled, job-starved economy looked a lot like his warmed-over, half-baked proposals of the past.

With rare exceptions, Mr. Obama’s State of the Union address was a costly laundry list of more big-government spending programs aimed at his party’s political base.

More job-training programs? There are 47 different federal job-training programs right now, costing $18 billion a year, according to the Government Accountability Office. There are 51 other programs that offer job-training assistance.

With the unemployment rate rising last month to nearly 8 percent and likely heading higher, and economic growth screeching to a halt in the fourth quarter, Mr. Obama is under pressure to come up with some new ideas to put America back to work and reboot the economy’s moribund growth rate.

The ideas he presented to Congress, though, were a hastily prepared, duct-taped patchwork of proposals that came right out of a 1930s-style Democratic playbook, including many that have been rejected on Capitol Hill in both chambers.

Perhaps the oldest liberal canard was his proposal to increase the minimum wage from $7.25 to $9 an hour by 2015, and index future increases to inflation. Nothing will destroy jobs faster, especially among teenagers, young adults, minorities and the middle class.

While these are the groups he’s targeted the most for assistance, they have suffered the most under his anti-job, anti-growth policies and have the highest unemployment rates.

A Democrat-controlled Congress raised the minimum wage by 10.6 percent in July 2009. “In the ensuing six months, nearly 600,000 teen jobs disappeared, even with nearly 4 percent growth in the economy,” says William Dunkelberg, chief economist for the National Federation of Independent Business, the nation’s small-business lobby.

Small businesses, which create the bulk of all jobs in our country, are struggling to survive in Mr. Obama’s weak economy. Raising their labor costs now will result in steep job layoffs, hiring freezes or both.

His costly, government-centered blueprint for new jobs has failed industrial policy written all over it. Ask Japan, which has tried every public works spending idea there is but is still sinking into a recession.

He wants $50 billion for more infrastructure projects in roads and bridges, on top of the $800 billion-plus he spent in his failed 2009 “stimulus” program; $15 billion to repair and tear down homes in blighted neighborhoods, an idea he proposed in 2011; a temporary $6 billion tax credit to assist communities hit hard by factory closings; and a $1 billion slush fund to develop “manufacturing innovation institutes” across the country.

He called for yet another green-energy fund on top of the scandal-ridden, multibillion dollar Energy Department fund that’s been bankrolling a lengthening list of politically connected energy deals that have since gone bankrupt.

Mr. Obama’s latest brainstorm is an Energy Security Trust paid out of federal oil and gas revenues to finance research into exotic biofuels from pond algae, an idea that was being funded under his earlier clean-energy programs that have wasted hundreds of millions of dollars.

One of them is a $150 million boondoggle from his 2009 economic recovery act that went to a battery cell firm, LG Chem Michigan (a subsidiary of South Korea’s giant LG), to make automobile cells. To date, battery production has not begun, the program is rife with mismanagement, and only half of the 440 jobs have been filled, according to an inspector general’s report. Instead, an audit found that much of the federal money went to pay workers who have spent their time playing cards and video games, watching movies and doing volunteer work at animal shelters and community groups.

Then there were the less-than-truthful claims sprinkled throughout Mr. Obama’s address that conveniently left out key statistics that show the economy’s performance under his policies have not lived up to his hype.

Story Continues →

View Entire Story

© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.

About the Author
Donald Lambro

Donald Lambro

Donald Lambro is the chief political correspondent for The Washington Times, the author of five books and a nationally syndicated columnist. His twice-weekly United Feature Syndicate column appears in newspapers across the country, including The Washington Times. He received the Warren Brookes Award For Excellence In Journalism in 1995 and in that same year was the host and co-writer of ...

Latest Stories

Comments
blog comments powered by Disqus
TWT Video Picks
You Might Also Like
  • Maureen McDonnell looks on as her husband, former Virginia Gov. Bob McDonnell, made a statement on Tuesday after the couple was indicted on corruption charges. (associated press)

    PRUDEN: Where have the big-time grifters gone?

  • This photo taken Jan. 9, 2014,  shows New Jersey Gov. Chris Christie gesturing as he answers a question during a news conference  at the Statehouse in Trenton.  Christie will propose extending the public school calendar and lengthening the school day in a speech he hopes will help him rebound from an apparent political payback scheme orchestrated by key aides. The early front-runner for the 2016 Republican presidential nomination will make a case Tuesday Jan. 14, 2014, that children who spend more time in school graduate better prepared academically, according to excerpts of his State of the State address obtained by The Associated Press. (AP Photo/Mel Evans)

    BRUCE: Bombastic arrogance or humble determination? Chris Christie’s choice

  • ** FILE ** Secretary of State Hillary Rodham testifies on Capitol Hill in Washington, Wednesday, Jan. 23, 2013, before the Senate Foreign Relations Committee hearing on the deadly September attack on the U.S. diplomatic mission in Benghazi, Libya, that killed Ambassador J. Chris Stevens and three other Americans. (AP Photo/Pablo Martinez Monsivais, File)

    PRUDEN: The question to haunt the West

  • Get Breaking Alerts