The only government intervention that will drive the economy is “getting the hell out of the way”

I think I just found a new blog to love. It’s called Mean Street, at wsj.com, by a man named Evan Newmark. Here’s why.

He says we should be very careful about buying into this “the recession is over” stuff in A Sham GDP for a Sham Economy. Our GDP “growth” announced today is from government spending, much of it from cash for clunkers. This is just kicking the can down the road in the form of borrowing against the future. Remember how auto sales tanked horribly in September, after the program ended? That is not, by anybody’s definition, an “economic recovery”.

But even better, this post is a must-read: It’s Official — Obamanomics Isn’t Working.

You likely missed it. But Thursday’s Congressional testimony from Obama Council of Economic Adviser Chief, Christina Romer was the big story. She officially admitted what many of us already knew: Obamanomics isn’t working.

The $787 billion Obama stimulus package that was supposed to keep U.S. unemployment at under 8% will not only fail to keep it under 10%. But by mid-2010 “fiscal stimulus will be contributing little to further growth.”

As for President Obama’s big promise last January to create 3.5 or 4 million new American jobs. Forget it. “Unemployment is unlikely to end 2010 much below its current levels.”

Romer’s admission was startling. You’ll recall that it was her January 10th paper that outlined what a mighty job machine the Obama presidency would be. Every 1% boost in GDP would get a million new jobs.

Now here we are running stimulus-heavy budget deficits that will total almost $3 trillion over this year and next. GDP is on the rise again. And still, no new jobs.

What’s even more depressing, is that the Obama White House still hasn’t figured out why businesses aren’t hiring.

The White House seems pretty certain about how American businesses should behave. And it seems pretty certain that the U.S. Chamber of Commerce, insurance companies and banks aren’t doing what they should be doing.

But all that joblessness? Who knows? Not Romer. It’s all a macroeconomic mystery of time-lags and GDP multipliers. In her testimony, she offers up seven different guesstimates on jobs created by the stimulus.

Does it ever occur to the White House to see the economy as businessmen do? Does it ever occur to the White House that America’s businesses aren’t hiring because they don’t trust Washington?

No. Business is E-V-I-L!

Just check out President Obama’s Saturday radio address on small business to see what I’m talking about.

The president paid tribute to small business, to “mom and pop stores and neighborhood restaurants we know and love.” Small business, he intoned, was the “engine of our economy,” “the heart of the American dream.”

So did the president propose new ways of cutting payroll taxes, employment costs and red-tape for the “engine of our economy?” Nope. Instead, he promised more federal SBA loans and health insurance reform courtesy of federal intervention and mandates.

How many small businessmen do you know that want government more involved in their business?

I know lots of small businessmen and I can’t think of one. I myself employ just one worker in New York City — and the amount of paperwork, fees, taxes and aggravation involved makes it feel like I’m employing a thousand.

I recently discovered that as a self-employed New Yorker I now have the pleasure of paying a new Metropolitan Commuter Mobility Transportation Tax. This measly 0.34% tax on wages is exactly the kind of stupidity that kills jobs. It’s the kind of tinkering that governments can’t resist. And it’s the very reason government terrifies businesses.

Read the whole thing.

How did we end up with a bunch of Keystone Cops in the White House?