Uncategorized / 11.01.2011
Wanted: New Ideas to Grow the Want Ads
The president has proposed a new round of stimulus spending to confront the jobs crisis. The Federal Reserve has said it will increase monetary expansion. Seems like another round of banging our heads against a wall.
Stimulus, if done right, should and could work. Pumping money into the right projects should create jobs. I’m not debating theory. The problem is the practice. For some reason, the last few attempts at stimulus have not created jobs. There is no reason to think that this time will be different.
To see what can be done, let’s look at where the money is. Big, public companies are making money. Earnings of the S&P, on average, have consistently grown for the last 10 quarters, with the last seven showing double-digit growth (year-on-year). Wealth creation and growth are happening.