The good news for unemployed people is that Barack Obama is about to do his best imitation of Bill “I Feel Your Pain” Clinton and start concentrating on giving them jobs. How? Well, that’s not so clear. They’re making it up as they go along. The bad news is that the mainstream economists who the administration listens to are just as confused as they are about how to “create jobs.”
The Obama administration said Wednesday that the president will make a speech shortly after Labor Day outlining what he’s planning to do about creating jobs. It would probably help if he would call someone at the Mises Institute for a few minutes to get an explanation about why government can only destroy jobs, not create them. Since that’s not going to happen, let’s take a look at the beliefs of the sort of neo-Keynesians who he will be listening to in formulating his plan.