Peter Schiff explains it well (HT: Carpe Diem) in his testimony before the Congress on Jobs Committee:
In fact, some of what he said is very reminiscent of this most excellent video of Daniel Hannan from 2 years ago, dressing down then British Prime Minister for trying to spend his way out of the recession:
It may be hard to believe after watching the video, but Hannan supported Obama and still supported him through the first stimulus package. I wonder if he has changed his mind? What he says at about the 2 minute mark would aptly apply to Obama’s latest jobs bill proposal.
Prime Minister, you cannot carry on forever squeezing the productive bit of the economy, in order to fund an unprecedented engorgement of the unproductive bit. You cannot spend your way out of recession or borrow your way out of debt. You know and we know and you know that we know that its nonsense.
Addendum: At the 12:35 mark of the first video, Schiff asks a question that I like to ask my liberal friends who want to raise taxes on the rich:
What percentage of my income do you think would be fair to take?
The hemming and hawing that goes on after that is priceless. No answer was given. Just airs of indignity, which often masquerades as argument, to shame Schiff for asking such a question.
Like Schiff, I’d like to know. I want anyone who would like to raise taxes to tell me what they want to raise it to. That way when we get there and we won’t have to keep hearing that we should pay more. When they run out of our money, we can remind that they told us that X% would be enough so they now need to figure out how to get spending under control.