Peter Schiff On Obamanomics: "There Are Not Enough Open Minds In The Capitol To Keep
Peter Schiff wraps his congressional testimony on the Obama jobs plan, which was one of the most memorable such Congressional hearings on the topic to date, with the following letter of caution to all Americans. To wit: "I don't think those few open minds in the Capitol are going to be enough to keep this ship from sinking. There just isn't enough time or a strong enough will for reform from the American people. That is why it is so important for you to act individually to protect yourself and your family from the new age of stagflation. Please take the time to view my testimony, understand the problems we face, and align your investments accordingly." We urge anyone who has not watched Peter's testimony yet to do so below.
From Peter Schiff:
Dear Friends and Supporters,
As many of you know, last week I was invited to Washington to testify in front of the House of Representatives Subcommittee on Government Reform and Stimulus Oversight. For that, we can thank Subcommittee Chairman Jim Jordan (R-OH).
The subject of the hearing was job creation in the United States Ė specifically, what the government can and canít do to boost employment. While many people have asked me in the last few days why I even bothered to participate, I think it was a valuable experience. I donít expect that anything I said will make an immediate impact on policy, but at least some of my opinions got a fair hearing in the halls of power.
After the testimony, I did have a few one-on-one meetings with open-minded Congressmen from both sides of the aisle. Maybe they were just being polite, but they had no obligation to talk to me, or even invite me, in the first place. So, I thank them for the opportunity.
Still, I don't think those few open minds in the Capitol are going to be enough to keep this ship from sinking. There just isn't enough time or a strong enough will for reform from the American people.
That is why it is so important for you to act individually to protect yourself and your family from the new age of stagflation. Please take the time to view my testimony, understand the problems we face, and align your investments accordingly.
For a 22-minute version with just the highlights of my remarks and exchanges with the Committee, see below.
Sounds really familiar lol.
Here's How the Government Can Really Create Jobs
This one flies right into the face of Hava-gava-kasha's rigid political position. Long.
On Tuesday, September 13, Peter Schiff, the CEO of Euro Pacific Capital, will testify before the House of Representatives Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending.
The hearing entitled, "Take Two: The President's Proposal to Stimulate the Economy and Create Jobs" will examine federal job creation efforts.
Mr. Chairman, Mr. Ranking member, and all distinguished members of this panel.
Thank you for inviting me here today to offer my opinions as to how the government can help the American economy recover from the worst crisis in living memory.
Despite the understandable human tendency to help others, government spending cannot be a net creator of jobs.
Indeed many efforts currently under consideration by the Administration and Congress will actively destroy jobs.
These initiatives must stop.
While it is easy to see how a deficit-financed government program can lead to the creation of a specific job, it is much harder to see how other jobs are destroyed by the diversion of capital and resources.
It is also difficult to see how the bigger budget deficits sap the economy of vitality, destroying jobs in the process.
In a free market jobs are created by profit seeking businesses with access to capital. Unfortunately Government taxes and regulation diminish profits, and deficit spending and artificially low interest rates inhibit capital formation. As a result unemployment remains high, and will likely continue to rise until policies are reversed.
It is my belief that a dollar of deficit spending does more damage to job creation than a dollar of taxes.
That is because taxes (particularly those targeting the middle or lower income groups) have their greatest impact on spending, while deficits more directly impact savings and investment.
Contrary to the beliefs held by many professional economists spending does not make an economy grow.
Savings and investment are far more determinative.
Any program that diverts capital into consumption and away from savings and investment will diminish future economic growth and job creation.
Creating jobs is easy for government, but all jobs are not equal. Paying people to dig ditches and fill them up does society no good. On balance these "jobs" diminish the economy by wasting scarce land, labor and capital. We do not want jobs for the sake of work, but for the goods and services they produce. As it has a printing press, the government could mandate employment for all, as did the Soviet Union. But if these jobs are not productive, and government jobs rarely are, society is no better for it.