Peter Schiff's Testimony Before Congressional Committee of Oversight & Reform (9/13/2011)

Below is Peter Schiff's testimony before the Congressional Committee of Oversight & Reform with Q&A (hat tip reboilroom). Also embedded is the transcript of his testimony. He runs Euro Pacific Capital and is a hardcore Austrian economist. If you remember, he was one of the ones on CNBC and FOX that warned viewers about the pending housing crash, evaporation of home equity and negative effects from artificially low interest rates (see videos 1, 2, 3). Now that we're experiencing the aftermath of his predictions and ongoing de-leveraging, there's no doubt these are tough decisions to make. Thoughts?
"How the Government Can Create Jobs

Testimony by Peter D. Schiff

Offer to the House Sub-Committee on Government Reform and Stimulus Oversight

September 13, 2011

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 to 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 diminishes 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." (continue reading below)

Peter Schiff Testimony House Sub-Committee on Government Reform and Stimulus Oversight


Related reading at I found interesting: As California Headed Back into Recession, the San Francisco FED Was Declaring Recovery, Limits to Keynesianism

Also this was an interesting video: Valedictorian: Don't Let Schooling Interfere With Your Education (lol).