Monday, December 07, 2009

Roundup: Economy/Porkulus edition

(1) By Jim Geraghty's reckoning, the Allentown slice of the porkulus spent over $11 million on various projects with no identifiable jobs created. "Hey, I think I spotted the problem with the economy! All of this money is being thrown around, but nobody's created any jobs with it!"

(2) The CEO of Emerson Electric Company is not liking what he's seeing coming out of Washington (emphasis added):
The federal government is "doing everything in [its] manpower [and] capability to destroy U.S. manufacturing," says David Farr, chairman and CEO of Emerson Electric Co., in a presentation at the Baird 2009 Industrial Conference in Chicago Ill., on Nov. 11. In comments reported by Bloomberg, Farr added that companies will continue adding jobs in China and India because they are "places where people want the products and where the governments welcome you to actually do something. I am not going to hire anybody in the United States. I'm moving. They are doing everything possible to destroy jobs."

Farr cites Cap-&-Trade, the expensive but non-targeted stimulus, the debt, the deficit, inflationary monetary policy, Obamacare, and general taxation and regulation.

Emerson is an S&P-500 component and has a market capitalization of over $30-bn.

(h/t to Eddie at Doubleplusundead)

(3) Maybe that's why a majority of Americans want to cut their losses on the stimulus. Calls for a second stimulus (or third, depending on your count) will fall on deaf ears. (I seem to recall a certain Senate candidate who feels the same way.)

(4) Even youngsters are souring on Obama's policies, though they have yet to bail out on Obama himself. It's a start. (Translation for candidates: attack the policies, not Obama.)

(5) The return of the Misery Index does not bode well for Democrats, especially now that deflation has been transitioning into inflation.

(cross-posted)

2 comments:

Samay said...

I don't know about China, but David Farr has never tried to do business in India.

Unless he's friends with a Chief Minister, he's dead in the water. And trying to sell industrial products...

Also, the US doesn't have cap-and-trade, and India has incredible amounts of "stimulus" if you mean spending on infrastructure just to spend.

Sounds like he just goes to Blame-America-First thinking.

JoeCollins said...

The article cited the "prospect" of Cap & Trade. I guess I could have been more specific about that. And there's noise coming from the EPA about executive regulation of CO2 without additional legislation. So Cap and no-trade. But there's a near zero prospect of carbon regulation in BRIC/etc.

Yeah, there's probably some bluster there, but I have to agree with the trend.

Anyway, if you're going to go Keynesian, people should at least read the Becker/Posner blog, which is constructively critical of the administration.

Old blog
http://www.becker-posner-blog.com/

New blog
http://uchicagolaw.typepad.com/beckerposner/

The last two posts on the old blog specifically speak to unemployment.