TheRoanokeStar.com
Commentary: Why The Obama Stimulus Plan Won't Work President Barack Obama and his economic team will soon attempt to convince Congress that spending upwards of $1 trillion tax dollars (more or less) will shorten the recession. A good part of the spending will be on public works and infrastructure projects that aim to create (or save) many millions of jobs. Some of the spending will be in the form of grants to state governments to prevent cutbacks in education and medical services. And a smaller (and laudable) part of the program provides tax relief to some individuals and corporations. Although some economists supported the bank and auto bailouts and although many more support a major federal stimulus package, this economist holds that both measures are counter-productive. Both are likely to prolong the economic slump and not shorten it. This may seem harsh but the ultimate cure for a recession is recession. Economic booms malinvest labor and capital and recessions are necessary to clean out these malinvestments. Declining prices allow consumers to more easily purchase products (homes, autos) in excess supply; inventories are reduced and supply and demand are brought into balance. And declining profits weed out business organizations and managers that have invested poorly during the boom; bankruptcy allows resources to flow to more profitable areas of the economy. A sustainable recovery is now possible. It should be obvious that random bailouts can short-circuit the recovery process by propping up poorly performing companies and slowing resource reallocation. With tens of billions in lost profits,
General Motors and Chrysler have demonstrated vast inefficiency; yet taxpayer bailouts will preserve their poor management and high-cost union jobs. Worse, other more efficient automobile suppliers will lose sales to Detroit's dinosaurs and may themselves require subsidies. It just never ends. The case for bailing out spendthrift state governments or for additional infrastructure spending is equally flawed. Supporters constantly argue that "since consumers won't spend, governments must spend (to create more jobs)." And since it's claimed that there are vast unmet public sector needs, what better time to undertake major road construction or help state governments fund programs such as Medicaid. Some public policies are wrong in both theory and practice; infrastructure spending and bailing out state governments to shorten recessions are examples. In theory, the money to fund the stimulus will have to come from either massive federal borrowing, substantial tax hikes, or pure money inflation by the Federal Reserve. But none of this can remotely promote recovery in the private sector of the economy. All it will do is substitute some private/public sector jobs in one part of the economy for other private/public sector jobs in another part of the economy. Public spending on major infrastructure projects to fight recession is especially problematic. (Think "Big Dig" in Boston.) Which programs will be undertaken? In which congressional districts? And where will the labor resources come from? Supporters of public works automatically assume that the current increase in unem-
Yorkshire Terrier Puppies For Sale. AKC Reg., shots, wormed, small & adorable, raised in loving home. Call 540-293-3759. Labrador Retriever Pups - both parents on sight - bred for and hunt upland game turkey and duck. All papers, shots and vet checked - fantastic play and hunting pals - ready to easily train at 7 weeks - available on Jan 28th. Call 540-890-2117 or 343-9200.
> Lost & Found
Found: Dog - Male boxer running alongside Rt. 419 just south of Our Lady of Nazareth church. He is a neutered fawn and white male with a white chest blaze and some graying or white whisker hairs. No collar, but appeared clean and healthy. Now in possession of Roanoke County Animal control. > Help Wanted
Janitorial Services
Above Average Pay Experience not required, but preferred Background & Drug Testing Required FT & PT M-F, Evening Hours Occasional Weekends Email: janitorialservices@hotmail.com > Prayer
O Sacred Heart of Jesus, may you be praised and adored, glorified and loved, now and
Letter to the Editor forever, throughout the world, until the end of time. O Sacred Heart of Jesus, pray for us. St. Jude, worker of miracles, pray for us. St. Jude, help of the helpless, pray for us. Amen > Haiku ads Place a haiku ad (5,7,5) for $5 per week Good brick work for you Home improvements and repair Free estimate too! 540-314-8386
Community Calendar > January 01/30/2009 6:00 PM to 01/30/2009 10:00 PM Winterfest Beach Bash Featuring Domino & Coastline 01/30/2009 to 02/01/2009 Kazim Shrine Circus At the Roanoke Civic Center 01/31/2009 to 01/31/2009 Member One Valley Shootout Basketball Tournament Presented by the Salem Kiwanis Club 02/01/2009 4:00 PM to 02/01/2009 Roanoke College Faculty Concert Roanoke College’s Olin Recital Hall. No tickets required. 02/03/2009 7:30 PM to 02/03/2009 One-Act Play: “Show Me the Franklins” Roanoke College’s Antrim Chapel. No tickets required. 02/05/2009 7:30 PM to 02/05/2009 10:00 PM Esperanze Spalding Mesmerizing talent. Irresistible charm. Spellbinding allure. 02/05/2009 7:30 PM to 02/05/2009 Larry the Cable Guy Performance Set With Reno Collier 02/05/2009 10:00 AM to 02/07/2009 “Ramona Quimby” Hollins University Theatre Production 02/06/2009 8:00 PM to 02/06/2009 Author of “The Rope Walk” and “Confinement” Carrie Brown to speak 02/06/2009 9:00 AM to 02/06/2009 10:00 AM Western Virginia Workforce Development Board Meeting Goodwill Industries of the Valleys Corporate Office
Concert Set With Special Guest Conway Twitty 02/06/2009 12:00 PM to 02/06/2009 1:00 PM Virginia Tech Roanoke Center Distinguished Faculty Research Forum The First Interracial Marriage 02/07/2009 10:00 AM to 02/07/2009 4:00 PM 10th Annual Tons of Fun Free Family Fun Day 02/07/2009 10:00 AM to 02/07/2009 4:00 PM Tons of Fun Indoor Carnival 02/07/2009 9:00 AM to 02/07/2009 Salem Police Officers Ball At Salem Civic Center 02/07/2009 10:00 AM to 02/07/2009 4:00 PM 10th Annual Tons of Fun 2009 Free Family Fun for all ages! 02/09/2009 7:30 PM to 02/09/2009 “Hairspray” Coming to Roanoke To the Roanoke Performing Arts Center 02/11/2009 7:30 PM to 02/11/2009 Fowler Lecture: “The Conservative Intellectual Movement” In Roanoke College’s Colket Center Wortmann Ballroom. 02/11/2009 5:30 PM to 02/11/2009 NewVaConnects Board Meeting The Young Professional’s Voice for Action 02/11/2009 7:30 PM to 02/11/2009 “An Evening with Oscar Wilde” Hollins Theatre 02/11/2009 7:00 PM to 02/11/2009 “Pimps Up, Ho’s Down:A Discussion of HipHop and Feminism” Black History Month Event
02/12/2009 7:30 PM to 02/12/2009 10:00 PM Ladysmith Black Mambazo Heavenly Harmonies.Airy a capella. Serene stage presence. 02/13/2009 to 02/13/2009 Darwin Day Roanoke College’s biology department will host a celebration of Darwin’s 200th birthday and the 150th year of the Origins of the Species. 02/13/2009 to 02/14/2009 Advance Auto Parts Monster Jam Set at Roanoke Civic Center 02/13/2009 to 02/15/2009 Star City Canine Agility Trials & Obedience At Salem Civic Center 02/13/2009 to 02/14/2009 Advance Auto Parts Monster Jam At Roanoke Civic Center Coliseum
> Feb. 5
FairTax Educational Meeting Roanoke Area FairTax will have a 30-minute presentation, “FairTax Websites,” followed by 30 minutes of questions, answers, and discussion. This is a good introduction to the various online groups that have sprung up to promote the FairTax. When - 6:45 p.m. (sharp) – 7:45 p.m. Where - Edinburgh Square’s Community Room, 129 Hershberger Road NW, near Plantation Road, directly across from Star City Skating Center. For More - RAFT@att.net or www.RoanokeAreaFairTax. com.
> Feb. 14
The last “word” in the prayer debate
“Whereas Almighty God hath created the mind free ...” so begins the Virginia Statue for Religious Freedom. Roanoke City Council will continue with the reinstated custom of having various members of clergy deliver the invocation at regular council meetings. Invited clergy receive a letter from the city clerk’s office that gives guidance and suggestions on delivering nonsectarian prayer. It reads, in part: “the courts have ruled that such invocations delivered by the clergy must be nonsectarian in nature, and should not be used to advance a particular religion or to disparage another faith or belief, but offer a time of reflection and encouragement.” In a letter to council members dated January 13th, William Hackworth, Roanoke City Attorney, pointed out that invocations are not actually provided for in city code. However, Hackworth noted that in 2005 the Virginia General Assembly enacted a provision that stated: “during the time prior to the governing body’s actual call to order Dominick Armentano is a research fel- or convening of business, any low at the Independent Institute in Oak- expressions by members of the land CA. governing body or members of the public shall be held consis-
Classifieds > Puppies for Sale
02/06/2009 7:30 PM to 02/06/2009 George Jones
ployment provides a vast army of workers to fill new jobs. Not so fast. Unemployed workers with vastly different skill levels are scattered unevenly throughout the economy. It is simply unimaginable that even a tiny percentage of them would have the proper skill requirements or would relocate to the politically determined infrastructure projects. In addition, these projects require extremely long lead times (sometimes many years of permits and planning) and are unlikely to begin soon enough to have any near-term effect. The experience in the 1930's is instructive. Even though federal government spending increased from $9.8 billion in 1934 to $14.2 billion in 1940, the unemployment rate in 1940 was still a staggering 14.6%. A 45% increase in New Deal spending in six years did not end the Depression. Contrary to economist Paul Krugman and others, the federal government cannot spend us out of our economic quagmire. The best that the government can do is not make things worse. We don't need more corporate or state bailouts and we don't need vast public works programs costing many hundreds of billions. We do need more prudent private and public spending, lower taxes on income and investment, and a responsible monetary policy from the Federal Reserve. And we still need lower prices and bankruptcies to finally correct the mistakes of the boom.
1/30/09 |The Roanoke Star-Sentinel |Page 9
Give Your Valentine an Arts Experience From the Taubman Museum of Art’s Tattoo Fashion Show, a special free film screening of Casablanca (1942) at The Grandin Theatre or a serenade by a
quartet from the Virginia Gentlemen’s Barbershop Chorus, your Valentine will shower you with love and appreciation. And so will Mother Earth! For a complete listing of experiential gifts and art inspired offerings, visit The Arts Council of the Blue Ridge’s Virginia GEMS (Give Experiences. Minimize Stuff.) www.myvirginiagems.com and select Valentine’s Day GEMS. Virginia GEMS is sponsored by AEP, Cox Communications, the Roanoke Times, and WDBJ. For more - contact Krista Engl 540-224-1203 or kengl@ theartscouncil.org
> Feb. 28
Roxie the Cow to visit Valley View Mall Shamrock Farms will be hosting a RockinWith RoxieDance Party from 11:00 a.m. 1:00 p.m. at Valley View Mall to encourage kids and parents to get up and get active. Fitness experts will be on-hand to teach families the hippest dance routines and share tips for staying healthy during the cold winter months. Roxie, the Shamrock Farms famous spokescow, will also be making an appearance, handing out cool giveaways and free samples of Shamrock Farmsmilk in new 12 oz. portable bottles.To complete the party, family-friendly music will be provided by WSLQ-FM and kids are invited to get a rockinmakeover with hairstyling and mock tattoo stations.
Kaine receiving 2 paychecks? Dear editor, Gov. Kaine just accepted a job to run the DNC and is keeping his job as Governor of Virginia. I presume he is getting 2 paychecks as well. Virginia taxpayers are paying a full-time salary to a part-time Governor. If Kaine wants to play politics full time, he should resign as Governor. Gov. Kaine should stop stealing from the taxpayers of Virginia. JB Mixon Roanoke,VA
tent with the individual’s First Amendment right of freedom of speech.” According to Hackworth, this provision would not prohibit a member of a local council or member of clergy form engaging in whatever type private prayer they wished before commencement of a council meeting. Hackworth recommended that if this option was chosen then it should be off camera and without microphones. Hackworth’s letter also stated, “One of the wonderful things about our country, of course, is that we are free to debate issues such as this … we are blessed to live in a Commonwealth where religious freedom has been ensured since our earliest days.”
By Valerie Garner Valerie.Garner@cox.net
Central Church of the Brethren 416 Church Ave., SW Roanoke, VA 24016 342-0337 A church in downtown Roanoke for all people in Roanoke Sunday School: 9:45 am Sunday Worship: 11:00 am Wednesday evening dinner, Bible study & youth: 5:30 p.m. pastortim@central.roacoxmail.com
Garden City Baptist Church A Church with a Loving, Caring and Healing Heart (540) 427-0131 3536 Garden City Blvd Roanoke, VA 24014 Sunday School.......9:45 am Worship Service.....11 am Youth Ministry.........6 pm Weds. Bible Study..6:45 pm Choir Practice.........7:45 pm
BEST RIBS IN TOWN! Rib Day:
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Salem Location (540) 444-0551 1122 W. Main St.
Across from McDonalds
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> March 14
St. Patrick’s Day Parade Parade Starts at 11:00 a.m. Downtown Roanoke,VA (Jefferson Street, Campbell Ave. and Williamson Road) HomeTown Bank Celtic Festival: New Festival location! Parking lot at corner of Williamson Road & Church Avenue 10:00 a.m. - 5:00 p.m. Have an item for the calendar? email it to submissions@theroanokestar.com
Ellis Redford 362-1070
3029B Peters Creek Rd., Roanoke, VA 24019
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