THE WEIRS TIMES, Thursday, March 18, 2010
7
St i M u l u S o r Se D a t i v e
not mean there will be The stimulus spending billion. White House to Capitol
more jobs. started back in 2008, Spending in general Hill, politicians are com-
What have been the ac- during the Bush admin- was down. The velocity of ing up with all sorts of
tual consequences of all istration, and has con- circulation of money fell bright ideas for borrowers
the hundreds of billions tinued under the Obama faster than it had in half not to have to pay back
of dollars that the gov- administration, so it has a century. what they borrowed and
ernment has spent? The had plenty of time to show Just two weeks ago, for lenders not to be able
idea behind the spending what it can do. the Wall Street Journal to foreclose on people
is that it will cause inves- After the Bush adminis- reported, “U.S. banks who are months behind
by thomas Sowell
tors to invest, lenders to tration’s stimulus spend- posted last year their on their mortgage pay-
Syndicated Columnist
lend and employers to ing in 2008, business sharpest decline in lend- ments.
employ. spending on equipment ing since 1942.” You can President Obama keeps
Abraham Lincoln once That was called “pump and software fell-- not call it a stimulus, if you telling us that he is “cre-
asked an audience how priming.” To get a pump rose-- by 28 percent. want to, just as you can ating jobs.” But more and
many legs a dog has, if going, people put a little Spending on durable call a tail a leg. But the more Americans have no
you called the tail a leg? water into it, so that the goods fell 22 percent. actual effect of what is jobs. The unemployment
When the audience said pump will start pump- What about the banks? called a “stimulus” has rate has declined slightly,
“five,” Lincoln corrected ing out a lot of water. Four months after the been more like that of a but only because many
them, saying that the an- In other words, govern- Trouble Asset Relief Pro- sedative. people have stopped look-
swer was four. “The fact ment money alone was gram (TARP) poured bil- Why aren’t the banks ing for jobs. You are only
that you call a tail a leg never supposed to restore lions of dollars into the lending, with all that counted as unemployed
does not make it a leg.” the economy by itself. It banks, the biggest re- money sitting there gath- if you are still looking for
That same principle ap- was supposed to get the cipients of that money ering dust? a job.
plies today. The fact that private sector spending, made 23 percent fewer You don’t lend when If all the unemployed
politicians call something lending, investing and loans than before. A year politicians are making it people were to decide
a “stimulus” does not employing. later, the credit extended more doubtful whether that it is hopeless and
make it a stimulus. The The question is: Is that by American banks as you are going to get your stop looking for work, the
fact that they call some- what has actually hap- a whole was down-- not money back-- either on unemployment statistics
thing a “jobs bill” does pened? up-- by more than $20 time or at all. From the
See SOwEll on 17
th e ri G h t to Wo r k
florists rarely use any- violates liberty and equal ers by limiting competi- David Price recently
more. One question asks protection, and so is un- tion and protects estab- spent six months in a
the name of the state’s constitutional. lished firms. It’s an old Kansas jail because he
agriculture commissioner “One of the most fun- story. Established busi- wrote a letter on behalf of
-- as though you can’t damental tenets of the nesses have always used a man who was wrongly
be a good florist without American dream is the government to handcuff accused of practicing ar-
knowing that piece of vital right to earn an honest competition. Years ago, chitecture without a li-
information. living without arbitrary small grocers tried to ban cense. When Price refused
The licensing board de- government interference. supermarkets. A&P was to promise never to “prac-
by John Stossel
Syndicated Columnist
fends its test, claiming it What could be more arbi- going to “destroy Main tice law” again, a judge
protects consumers from trary than saying who can Street,” the grocers cried. sent him to jail.
florists who might sell and who cannot sell flow- Minnesota legislators re- All he did was write a
The people of Louisi- them unhealthy flowers. ers?” IJ President Chip sponded to their lobby- letter. Price didn’t mis-
ana must sleep soundly I understand the estab- Mellor says. ing by passing a law that represent his credentials.
knowing that their state lished florists’ wish to Others states have their forbade supermarkets to However, he did save a
protects them from ... un- protect their profession’s own sets of ridiculous li- hold sales. Consumers man from paying $3,000
licensed florists. reputation, but in practice censing rules. In Virginia, were hurt. to a lawyer. Perhaps that
That’s right. In Louisi- such licensing laws main- you need a license to be OK, while licensing of was his real offense.
ana, you can’t sell flow- ly serve to limit competi- a yoga instructor. Florida florists, interior design- Some of the most fa-
er arrangements unless tion. Making it harder for threatened an interior ers and yoga teachers is mous lawyers in American
you have permission from newcomers to open florist designer with a $25,000 ridiculous, what about history, including Thomas
the government. How do shops lets established flo- fine if she didn’t do a six- more important profes- Jefferson, Abraham Lin-
you get permission? You rists hog the business. year apprenticeship and sions, like law? Surely coln and Supreme Court
must pass a test that is Other states are consid- pass a test, at a cost of people need protection Justice Benjamin Car-
graded by a board of flo- ering adopting Louisiana’s several thousand dollars. from people who would dozo, had no license from
rists who already have li- licensing law, but before Fortunately, the Institute practice law without a the state. Their customers
censes. To prepare for the any do, I hope that the for Justice got that law license. Again, I say no. decided whether they were
test, you might have to law will be stricken. The overturned. Lawyers’ monopoly on worthy of being hired.
spend $2,000 on a special Institute for Justice, a I’m rooting for IJ be- helping people with wills, Competition is better
course. public-interest law firm, cause licensing interferes bankruptcies and divorces than government at pro-
The test requires knowl- has challenged the licens- with the freedom to make is just another expensive tecting consumers from
edge of techniques that ing in court, saying it a living, harms consum- restraint of trade. See StOSSEl on 8
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