Actually, the government can create jobs, and in the current economy they're about the only ones left who can.

JM Keynes was correct when he said that the only economic statistic that really matters is employment; everything else flows from that. As Robert Reich put it:

"There's no more purchasing power in the economy. Consumers can't go any more, they're at the end of their ropes. Investors are not going to make new investments because the economy is basically dead in the water right now. Exports are shrinking because the rest of the world is in a recession. So what does that leave in terms of creating the purchasing power necessary to keep people employed and grow the economy? Only government. Government is the spender of last resort, and even Republicans and conservative Democrats understand."

That's why Obama's call for a massive infusion of cash into public works projects like rebuilding our highways and bridges and improving the electrical grid is so important. Government can, and must, create those jobs to help keep the economy afloat.

laguna,

Let's assume for a moment that President Obama is no more than President Clinton redux. Don't you think that represents a change from the last eight years? I sure do.

Mr. Nance,

The economics editor of the WSJ (whose name escapes me) was on NPR yesterday morning. His take was that Obama chose Geithner because he wanted to reassure Wall Street that there would be some continuity while at the same time choosing someone flexible enough to make the adjustments to the bailout plan that Obama wants to make. The reaction of the stock market to the announcement of Obama's economic plan would seem to indicate that Wall Street likes what they've seen and heard.

Obama has been receiving rave reviews for the economic team he has assembled from all corners:

http://blogs.wsj.com/economics/2008/11/2...

For a laugh, check out the RJ's spin on this in today's editorial. It's comical.

John Maynard Keynes was right. The only measure of economic health that really matters is employment. All other measures are pretty much worthless. So instead of spending untold billions on a bailout of, say, the auto industry, let the auto industry fail. It's their own poor business model that has brought this about; bailing them out now without forcing a change in their business behavior only means they'll be back later on for more.

In the meantime, we can spend the money on paying the affected workers to do something more porductive than buying GM and Ford a little more time. They could, for instance, get to work on an energy grid that could spread solar power from the west and wind power from the midwest all over the country. Or they could set to work reapiring our failing highways and bridges. Or they could set to work repairing the infrastructure in our national parks. This represents a much better use of our money.

Detroit could then use that time to create a business model that would allow them to compete with Honda, Toyota, and Hyundai that won't send them running to the taxpayers for billions of dollars every ten years or so.

Carole King, not James Taylor, wrote those words.