So the “stimulus of all stimuli” that was to be the big economic recovery miracle as touted by the Obama administration and Democrats in Congress in 2009….well it has been the worst effort at recovery since the great depression.
In other words, Obama’s famous “shovel-ready” stimulus slush fund has erupted and is slinging molten “shovel-empty” failure all over the economy.
To be fair, of course, Obama has stated that there are no “shovel-ready” jobs….AFTER getting his slush fund passed. So I guess all of that pre-stimulus rhetoric was really just President Obama shoveling something else out onto the American people.
What actually happened in place of the “shovel-ready’ jobs?
A new study by economists Timothy Conley of the University of Western Ontario and Bill Dupor of Ohio State found that despite the influx of all that federal money, highway construction jobs actually plunged by nearly 70,000 between 2008 and 2010.
As the authors explain, many states simply took the free federal money and shifted their own highway funds to meet other needs. In fact, in some states, highway spending dropped, even with the added federal money.
Examples cited in the study:
• Texas got $700 million in highway stimulus funds last year, but spent $560 million less on its roads in 2010 than it did in 2009.
• New York’s highway spending was basically unchanged between 2009 and 2010, despite getting $522 million more in federal highway bucks.
• Michigan boosted its highway spending just $17.4 million, far below the $189 million extra the feds handed the state for highway improvements.
The Department of Transportation, meanwhile, found that 21 states weren’t abiding by rules meant to prevent just this sort of shell game.
So what can we conclude when all of the Obama stimulus BS is shoveled away?
Conley and Dupor found that, overall, the $500 billion in stimulus spending did “create or save” 443,000 state and local government jobs, but it “destroyed or forestalled” 1 million private-sector jobs. In part, they say, that’s because the growth in state jobs crowded out private-sector job growth.
These results fly in the face of the White House’s continued claim that without the stimulus things would have been far worse, pointing to studies showing that it “created or saved” millions of jobs. But these studies rely on economic models that assume extra federal spending will lead to job growth, so it’s hardly surprising that they found it.
In the end, though, it doesn’t take a statistician to settle this matter. The simple fact is that Obama’s spendthrift ways produced the worst economic recovery since the Great Depression, with GDP growth far below, and unemployment far above, the trend set in previous recoveries.
Indeed, if Obama’s recovery had kept pace with Reagan’s after the equally deep and painful 1981-82 recession, we’d have 2.5 million more people with jobs right now.
So, when you add it all up, the stimulus plan left us with fewer people employed, a much bigger debt and still facing a big infrastructure problem. Even for government work, that’s pretty lousy.
So we have fewer people employed…what an understatement.
We have hovered at a 9 to 10% unemployment rate since the stimulus was forced upon us. The Obama administration promised before the passage of the
boondoggle stimulus that unemployment rate would not go above 8% with the “stimulus”.
CBS’s Mark Knoller, covering a town hall on the economy with the president this morning, reports: “President Obama blames high unemployment rate on ‘huge layoffs of government workers’ at federal, state and local levels.”
That is an outright lie conveyed by our President…much like the misleading rhetoric he spouted pre-“stimulus”. Proof comes from the Bureau of Labor Statistics via ScottGrannis.blogspot.com and Gateway Pundit:
Filed under: Barack HUSSEIN Obama, Collectivism, Daily Headlines, Economic Stimulus, Economy, Liberalism, Obama corruption, Politics, Progressives Ain't, Socialism, Taxes, Tea Party | Tagged: Barack Obama, boondoggle, debt, deficit, depression, Obama, recovery, shovel-ready, Stimulus |