Five years ago today (Feb 17th), President Barack Obama signed the American Recovery and Reinvestment Act into law. The $830 billion spending blowout was sold by the White House as a way to keep unemployment from rising above 8%. But the stimulus would fail on its own terms. 2009 marked the first of four straight years when unemployment averaged more than 8%. And of course the unemployment rate would have been even worse in those years and still today if so many people had not quit the labor force, driving labor-participation rates to 1970s levels.
There has been 14 million new births in the country. But less people are now working than before Barack. There are Less People working now than in the last 40 years.
So as they used to say on a beer commercial,”Less is More!”.
But you won’t hear that from the Ministry of Truth. He’s “created” millions of jobs. The fact that it the labor participation rate plummeting nearly 3% is why the unemployment rate has dropped is not going to be mentioned by them.
“Thanks in significant part to the actions of President Obama, the economic picture today is much brighter,” the Council of Economic Advisers told Congress in a self-congratulatory report. “While there is more work to do to help provide opportunity for all, the Recovery Act and subsequent jobs measures were an important step in the right direction.”
The White House report claims “about 9 million job-years” created or saved by the stimulus through 2012. “While these estimates are substantial, they still understate the full impact of the administration’s economic policies in tackling the Great Recession due to be being based only on the effect of fiscal measures,” the economists blithely maintain.(examiner)
Job-years? The latest Orwellian baffle-them-with-BS term that started out as “saved or created”.
They’ve done nothing but good, so don’t listen to the naysayers. They are just political hacks with an agenda! 🙂
The Obama White House had been egged on by liberal economists like Paul Krugman, who in November of 2008 recommended a stimulus of at least $600 billion. Team Obama worked with Democrats in Congress to exceed his minimum request by more than 30%. But after the failure of the stimulus the same liberal economists who had enthusiastically supported the plan would claim that its main flaw was that it was too small.
So basically, if we’d spent EVEN MORE, it would have worked better! 🙂
This coming from the lot that said Bush’s $5 Trillion of debt in 8 years was “unpatriotic” but yet in 6 years they’ve spent $7+ Trillion.
But like most things liberal that don’t worry, we just have to try harder, spend more, and wish even harder and ta da! everything will be ok. We just have to have more faith.
It can’t be because they are wrong. Oh no, that would be impossible! They are Homo Superior Liberalis and they are never wrong. You’re just not trying hard enough and the opposition is sabotaging them!!
Shortly after the passage of the Recovery Act in 2009, Vice President Joseph Biden urged local politicians not to spend the money on “stupid things.” They ignored his advice, and so did Mr. Biden. The federal government poured billions into the government and education sectors, where unemployment was low, but spent only about 10% on promised infrastructure, though the unemployment rate in construction was running in double digits. And some of the individual projects funded by the law were truly appalling. $783,000 was spent on a study of why young people consume malt liquor and marijuana. $92,000 went to the Army Corps of Engineers for costumes for mascots like Bobber the Water Safety Dog. $219,000 funded a study of college “hookups.”
In aggregate, the spending helped drive federal outlays from less than $3 trillion in 2008 to $3.5 trillion in 2009, where federal spending has roughly remained ever since.
The legacy is a slow-growth economy: Growth over the last 18 quarters has averaged just 2.4% — pretty shoddy compared to better than 4% growth during the Reagan recovery in the 1980s and almost 4% in the 1990s recovery.
The failure of the stimulus was a failure of the neo-Keynesian belief that economies can be jolted into action by a wave of government spending. In fact, people are smart enough to realize that every dollar poured into the economy via government spending must eventually be taken out of the productive economy in the form of taxes.
The way to jolt an economy to life and to sustain long-term growth is to create more incentives for people to work, save and invest. Let’s hope Washington’s next stimulus plan is aimed at reducing the tax and regulatory burden on American job creators. (WSJ)
If it’s a Liberal, oh Hell no! After all, it was the “other guy’s fault” for sabotaging it because they did spend enough! They didn’t create enough debt! 🙂
So Vote for Them, the other guys are at fault!