Wednesday, April 14, 2010

The Obama Job Failures

Here is a recent summary from the "Morning Bell" on the failure of the Obama team to create jobs. He could have stimulated the economy more by simply handing each of the umemployed one large check rather than the unwieldy stimulus program that was an overall failure.

The last paragraph of this article sums it up very nicely. The government has no money of its own. They only get money by taking ours.

On February 11th, President Barack Obama stood on a windy hilltop in front of a dusty construction site in Fairfax County, Virginia, and promised the American people: “Here in Virginia, my plan will create or save almost 100,000 jobs, doing work at sites just like this one.” Standing alongside current Democratic National Committee Chairman and former-Gov. Tim Kaine, the President continued: “Where we’re standing, that could mean hundreds of construction jobs. And the benefits of jobs we create directly will multiply across the economy.” Eleven months later, none of those promised jobs have been “created or saved.” In fact, the Obama administration quietly announced last week that they were dropping the fraudulent “saved or created” terminology altogether.

The failure of Obama’s $787 billion stimulus is particularly acute in Virginia where, as Heritage fellow Ron Utt has documented, despite $695 million in allocated infrastructure funding, only 16% of designated projects had begun. House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) even publicly complained about Virginia’s slow transportation spending, writing to Gov. Kaine: “your state ranks last among all states [51 out of 51, including the District of Columbia], based on an analysis of the percentage of Recovery Act highway formula funds put out to bid, under contract and under way.”

But even where infrastructure spending has been spent, the hard evidence shows that there has not been any positive effect on unemployment. According to an Associated Press analysis reviewed by independent economists at five universities, the $20 billion spent nationwide on infrastructure so far “has had no effect on local unemployment rates.” And this was just the most recent embarrassing headline for the White House’s signature economic policy. Since the first reporting deadline in October, newspapers and other media outlets across the country have identified 94,341 fake jobs reported by the Obama administration as jobs “created or saved” by the stimulus. After the Government Accountability Office issued a report finding “significant reporting and processing problems that need to be addressed,” Obama administration spokesman Ed Pound offered this defense of the Obama administration’s jobs numbers: “Who knows, man, who really knows.”

Now Office of Management and Budget Director Peter Orszag issued a little-noticed memo last month ending the “saved or created” metric and instead directing agencies to count only jobs “funded” by stimulus dollars. But as Harvard University labor economist Lawrence Katz tells ProPublica, this is not really an improvement: “I just think it’s a silly exercise.” Instead Katz says a more accurate way to account for the effect of the stimulus is to look at the unemployment numbers put out by the Bureau of Labor Statistics.

That is a great idea. The latest BLS report issued last Friday found that the U.S. economy dropped 85,000 jobs in December, bringing the jobs lost total to 2.7 million since the stimulus was passed and 3.4 million since Obama became President. In contrast, the President’s White House Council of Economic Advisers had promised total employment of at least 138.6 million by 2010. Actual employment as of December was reported to be 130.9 million, leaving the Obama jobs deficit at 7.7 million.

The problem with infrastructure spending as stimulus, and really government spending as stimulus, is that Congress does not have a vault of money waiting to be distributed. Every dollar Congress injects into the economy must first be taxed or borrowed out of the economy. No new spending power is created. It is merely redistributed from one group of people to another. Businesses are telling pollsters that among the biggest reasons they are not creating jobs is the prospect of new tax and regulatory burdens. A better solution to reduce unemployment is to simplify and reduce the barriers to business success.

5 comments:

  1. The Obama administration has yet to pass one single piece of legislation that promotes small business and job creation. I keep remembering the quip, "Socialism works well until the government runs out of money." According to the latest CBO report, which conveniently was published AFTER Obamacare passed, the current level of Government spending cannot be sustained.
    So what is a single tax payer to do? Well, I for one will be supporting conservative candidates for all offices at every level of government. All of the failed legislation of the Obama administration has to be repealed.

    ReplyDelete
  2. To Christopher D: I have been thinking how best to answer your question of two days ago, asking me how much I contribute to charities. Here is my answer: I give more to charities than I pay in federal taxes. The charities I contribute to use the money much more wisely.

    Now here is a question for you: Do you think it is ok for the government to use some of your tax dollars to pay for abortions?

    ReplyDelete
  3. Slim,
    I would have to say that the totality of the circumstance would have to be weighed before I can offer an honest answer to that question. I DO NOT support abortion as a means of birth control, but I do support abortion in cases of pregnancy as a result of incest, or when the life of the mother is at extreme risk, or in cases of severe birth defects, non-viable fetus, etc.

    There is misinformation that all federally funded health programs are required to offer abortion, and that is just NOT true, as an FQHC we are federally funded, and we do not, and are not required to offer abortion services, nor are we required to provide information or referrals to facilities that do.

    But I would like to counter your question with a question of my own on those same lines (since federal funds paying for the destruction of life is obviously a boiling point), do you think it is right that your tax dollars have paid for the deaths of 7748 American military personnel, contractors, journalist and aid workers, plus over 31,000 wounded Americans in the failed "war on terror" implemented by W, not to mention the hundreds of thousands of Iraqi and Afghanstini civilians killed?

    Look, you may think of me as a bleeding heart liberal, but to be truthful, I am a moderate independent, but I do lean liberally on some issues, just as I lean conservative on others.

    But what I have the most problem with is disinformation, and extremism in this so called conservative movement. We can vote politicians out of office and be rid of them, but we can not vote out or constitutionally silence this corrosive and toxic political atmosphere being created by this crap. When the "tea party" is now moving to create armed militia's (which is constitutionally legal), but couple that with the extremism shown by the members of that party, its time for people to open their eyes and pay close attention.

    Any law that has been passed can be repealed, but the damages being done between the people who will simply not meet int he middle can not be reversed.

    ReplyDelete
  4. Hi, Christopher,

    I would not agree with your statement that the "war on terror" is a failure. After 9/11, President Bush protected this country from further attack. His wars in Iraq and Afghanistan freed 50 million citizens of these countries. I am ex-military. I was trained to fight and defend America. I hate war, but war sometimes is necessary to protect the freedoms that this country has. My dad was an ExPow in WWII. He proudly served the USA so I, his son, could have freedom. As I read the Bible, the Triune God used war many times to assert his will. Read about the Israelites conquering the promised land.

    In regards to the Abortion issue, I think that Roe v. Wade, was the most satanic decision ever handed down by the Supreme Court. I applaud the recent legislation in Nebraska (the home of that right to live traitor, Ben Nelson) making late term abortions illegal. Yes, I agree that there are medical situations that make abortion necessary, but that should be a medical decision between doctor and patient. The whole sale use of abortion as birth control is abominable and sinful. There are many Americans who want to adopt unwanted children. I have a niece who has adopted seven foster children - they are are beautiful children that were either unwanted or the parents were not able to care for them. I am proud to say that I am a God Father for one of these "unwanted" children. Because of adoption, there is no justification for "birth control" type abortions.

    I strongly support all "right to life" organizations and efforts. That is why I abhor the health care reform bill and the terrible decisions made by so called "right to life" democrats who folded up when the pressure was put on them. Bart Stupak, Ben Nelson, Baron Hill, for example. They are all losers in my opinion for the failure to stand up for the "right to life" principles.

    ReplyDelete
  5. Slim,
    Just for FYI I have an adopted child at home.
    And thank you for your service to our country! (as well as your fathers service)

    I am the son of a deceased US Marine (Vietnam got that leatherneck 30 years after he came home due to a busted drum of a chemical they "did not use" in his Huey Gunship"

    Please understand, Slim, I do not harbor any hatred, or malice towards you for your view points, I respect them, and I welcome them.

    Sometimes though, it is up to us to actually disagree so we can have some moderation in our Country. Too much of one side, and not enough of the other is never a good thing.

    (but of course being an moderate independent who really is upset by both sides of the fences behavior right now, its hard to find a place to call "home" in these troubled times)

    Have a good day, and again, thank you for your service to all of us!

    ReplyDelete