Obama outlined his plan today to "create" 2.5 million jobs by 2011. In eerie similarity to Roosevelt's actions in the depression, Obama plans to put more people on the government payroll to build roads, bridges, and schools. This may sound nice on the surface but Obama is in fact lying - surpringly politicians lie, even Emperor-elect Obama.
Government can only consume, it does not "invest." What they do not want to tell you is that this money has to come from somewhere. Instead of letting the masses of people decide what to do with their own money (i.e. what types of goods to produce), politicians in Washington have determined that what you really want is roads and bridges. This is not job creation, but a reallocation of money from the private sector to overpaid employees in the public sector. It will actually reduce employment. Whereas the private sector will pay employes close to their marginal productivity, the government pays well in excess of the productivity of the individual. Thus, given the same pool of capital to pay employees, the private sector will hire more and produce more goods.
It is true that we are in for a prolonged depression with very high unemployment if Obama is able to do everything he wishes with us and our money. In addition to the job "creation" program, Obama wants to price more workers out of the market by increasing the minimum wage and he wishes to pay people not to work (thus attracting more unemployment) by increasing unemployment benefits.
Even worse, Obama has recently articulated his illusions of ending the business cycle. How will he accomplish this? By abolishing the Federal Reserve and their paper money-making machines? Not a chance. It turns out that more regulation is the key to ending the business cycle. It is that easy. Just give government everything you have and do exactly what they say and everything will be fine.
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