Can the Stimulus really create jobs for small business?

The headlines in this morning’s paper say the stimulus lacks validation. In other words there is no proof that the billions of dollars spent thus far are creating jobs. Is that a surprise to anyone?

The best explanation I’ve found on a stimulus package was on an anonymous website blog. It read as follows:

Can the government create real jobs really?
Let’s say you have five kids. Four have jobs, one doesn’t.
You feel bad the fifth doesn’t have a job, so you take 25% of the income from the four employed kids and “hire” the fifth kid to do shovel ready projects around the house.
Does the fifth kid really have a real job now? Is it self-sustaining? How long before the other four kids get tired of paying the fifth kid?
Of course it’s not a real job…
When our government makes temporary jobs to hire people for shovel ready jobs, jobs that are not self-sustaining, jobs that can only exist as long as people with real jobs are able to pay for these jobs out of their own pockets… these aren’t real jobs either.
To create jobs you must add value and create wealth. The money would be better spent on tax credits to encourage companies to invest in R&D, product development and expansion. If companies expand they create jobs and hire people. Those people get paychecks and create demand for new products and services, which in turn creates more jobs.
Depending on where you read it the stimulus package is somewhere around $780 billion dollars. And again depending on where you get your information it’s designed to “create” or save 6.5 million jobs. If my math is correct that’s about $120,000 per “job”. If the explanation above is correct, and I believe it is, we’re spending $120,000 for every non-sustaining job created by the government.
Does that say that each person hired to do highway work is being paid $120,000? Of course not, which makes the problem worse, the money isn’t going into the economy to create demand, it’s being absorbed in large part by government, which as we all know adds no value to the economy and creates no wealth.
The only way to create jobs is make more money available to the private sector to encourage innovation and develop new products and services. Even with the government’s ability to print money there is only a finite amount available. Every dollar spent by the government is a dollar that is taken from private enterprise.
To create a sound economy we absolutely must reduce the size and cost of government and invest in our future. The only way the stimulus package would make sense is if Obama reduced government spending by $780 Billion and made it available to private enterprise through bank loans, grants and more reasonable credit for sound companies. Small business creates jobs, if a proportionate amount of money was set aside in the form of credit access, job creation would be a reality.