published Saturday, December 10th, 2011

'Stimulus' claims vs. reality

Here is a bit of food for thought on the danger of accepting the rosy promises that politicians make when they propose big new spending programs.

In early 2009, shortly before his inauguration as president, Barack Obama used a radio address to urge Congress to pass a massive federal "stimulus."

"I asked my nominee for chair of the Council of Economic Advisers, Dr. Christina Romer, and the vice president-elect's chief economic adviser, Dr. Jared Bernstein, to conduct a rigorous analysis of this plan and come up with projections of how many jobs it will create -- and what kind of jobs they will be," Mr. Obama said during that address. "Today, I am releasing a report of their findings so that the American people can see exactly what this plan will mean for their families, their communities and our economy."

OK, so what "exactly" did Mr. Obama and his advisers think the stimulus -- whose price tag hit $862 billion -- would accomplish?

Well, they said the stimulus would hold unemployment below 8 percent, and that joblessness would steadily drop to less painful levels in coming months and years. By now -- December 2011 -- unemployment if the stimulus passed was supposed to have dropped to about 6 percent, according to the administration's projections.

Did it work out that way? Hardly.

Today's unemployment rate is 8.6 percent -- far higher than it was supposed to be by now if the stimulus passed. In fact, unemployment today is higher than the Obama administration predicted it would be even if the stimulus did not pass!

And that's only the tip of the iceberg. Joblessness has now been higher than 8 percent for 34 straight months -- a record not seen since World War II!

That raises an obvious question: If the first stimulus failed so miserably to do what the president said it would do, why should any consideration whatsoever be given to the idea of a second stimulus?

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Livn4life said...

But everyone knows those doggone blocking Republicans in Congress have caused all this. If Pres. Obama and com. had their way all would now be well. NOT, but that is the Democrat based liberal media's continual mantra. Saddest of all, I have some very well intentioned friends who buy that message over reality.

December 10, 2011 at 7:39 a.m.
conservative said...

Obamination is a Socialist.Controlling people,controlling the economy, spending other people's money and running up debt is the nature and practice of all Socialists. In his perverse thinking, unemployment actually helps him as these will look to the government for financial help and support.

December 10, 2011 at 8:43 a.m.
hambone said...

Con-serve, I didn't get a chance to reply about your Investers Business Daily yesterday.

I will admit that I haven't paid attention to it before, but what I see rather than a real newspaper is a publication by the editor to promote his books and his "how to invest in the stock market kit".

I saw one editorial that was more centrus than left leaning. All the rest were just repetition of right-wing talking points as might be seen on Faux.

December 10, 2011 at 3:03 p.m.
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