In a normal recession, the economy recovers lost jobs after 13 months. Not only is the Stimulus a failure, but so is Obama’s Keynesian economics. The Stimulus added $800 billion to the deficit without negligible job appreciation or significant improvement in the GDP. We hear that it would have been worse, which is not provable.
On July 1st, the White House released the Seventh Quarterly Report which was supposed to demonstrate the effectiveness of the Stimulus.
They stated that the jobs were temporary: “The Recovery Act was designed to be temporary. The amount of stimulus outlays and tax reductions has begun to decline and, as discussed in previous reports, as it does so the impact on the level of GDP and employment will lessen over time.”
One of my complaints about the Stimulus was that it was not creating real jobs, just temporary and part time jobs, welfare and union payoffs. There was little substance and the shovel ready jobs were not shovel ready. Their own report verifies the “temporariness” of the jobs with the previous statement.
The report reads: “The analysis indicates that the Recovery Act has played a significant role in the turnaround of the economy that has occurred over the past two years. Real GDP reached its low point in the second quarter of 2009 and has been growing solidly since then, in large part because of the tax cuts and spending increases included in the Act. Employment, after falling dramatically, began to grow again on a sustained basis through 2010. As of the first quarter of 2011, the report estimates that the Recovery Act raised employment by 2.4 to 3.6 million jobs relative to what it otherwise would have been.”
It’s impossible to know whether or not these 2.4 to 3.6 million jobs are the result of the Stimulus or if they were even created, but we do know they were temporary as stated in the report.
Meanwhile, our growth last quarter was 0.4% and 1.3% in the second quarter. Our unemployment is at 9.2% though we were promised no higher than 8%.
The Weekly Standard has an interesting take on it: “The council reports that, using “mainstream estimates of economic multipliers for the effects of fiscal stimulus” (which it describes as a “natural way to estimate the effects of” the legislation), the “stimulus” has added or saved just under 2.4 million jobs — whether private or public — at a cost (to date) of $666 billion. That’s a cost to taxpayers of $278,000 per job.
In other words, the government could simply have cut a $100,000 check to everyone whose employment was allegedly made possible by the “stimulus,” and taxpayers would have come out $427 billion ahead.
Furthermore, the council reports that, as of two quarters ago, the “stimulus” had added or saved just under 2.7 million jobs — or 288,000 more than it has now. In other words, over the past six months, the economy would have added or saved more jobs without the “stimulus” than it has with it. In comparison to how things would otherwise have been, the “stimulus” has been working in reverse over the past six months, causing the economy to shed jobs.” Read here: The Weekly Standard
Now we are asking for a raise in the debt ceiling which will add nearly 3 trillion more to the unsustainable deficit.
Listen to this quote: “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” ~
John Boehner Barack Obama That’s correct, Barack Obama!
This quote was from Barack Obama’s 2006 speech when he was Senator Obama arguing against a raise in the debt ceiling to 9 trillion. Now he wants an increase in the debt ceiling to over 16 trillion. How times have changed – for him. His 2006 quote is the way we need President Obama to think once again.
Instead of easing our debt burden, President Obama has increased it through deficit spending of one-and-a-half trillion each year for three years. He also gave us the unsustainable Obamacare, spent half the TARP, promoted the printing of unbacked money, and he gave us the useless Stimulus which did little more than add to the deficit.