So the Obama “stimulus” was a boondoggle/slush fund after all…who knew?


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?

From Investors.com:

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”.

(Graph: GatewayPundit.RightNetwork.com)

Further, Obama recently claimed that many of the jobs were lost in the public sector. 

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:

Source: scottgrannis.blogspot.com
 
And no recovery discussion would be complete without seeing the full picture of deficits that are producing crushing debt — to the current tune of about $14 Trillion— that is mounting upon Americans born and unborn.

Source: Heritage.org

 This is what “hope-n-change” and phantom shovel-ready projects will do for you, America!
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10 Responses

  1. A new study shows that right-wingers will believe anything that supports their agenda.

  2. […] is another great blog from sharprightturn and the link is posted below. John Wilder  https://sharprightturn.wordpress.com/2011/05/19/so-the-obama-stimulus-was-a-boondoggleslush-fund-afte… […]

  3. Ben,
    Your statement is hilarious coming from the king of Leftist spin.

    I guess using numbers from the Bureau of Labor Statistics, CBO, and OMB are not supposed to be believed.

    And citing studies that didn’t emanate from Obama-friendly agencies is also not apropos for leftists who try to alter facts to fit their preconceived notions of policies, conservatives, and leftist ideals.

    And your comment is especially entertaining considering that these are some of the most recent headlines in your blog:

    “Everyone but the wealthy suffers when conservatives get their way “

    “Medicare and Social Security going broke sooner than expected, due to conservative policies”

    “The myth of privatization – Just another right-wing lie”

    Funny!

  4. Oh, boy… they used real numbers and graphs and charts and stuff… And even some equations! It must be true!

    Here’s a study that shows the stimulus was an enormous success. And it has even more charts and numbers, so it must be even more true! 🙂
    http://www.frbsf.org/publications/economics/papers/2010/wp10-17bk.pdf

  5. And isn’t it telling which “charts and graphs and stuff” that you choose to deem as sacred?

    Besides, the study you cite indicates no “enormous success” with the stimulus boondoggle, especially in the job creation department.

    It clearly obtained results that indicate any positive (supposed) net job creation by the stimulus was dwindled to a net ZERO by August 2010 at a cost of $400K per job “created”.
    Why don’t you ask one of the 9% unemployed in this country how enormous that success is?

    Even if you want to debate the findings of their study on transportation projects with the one cited at Investors.com….fair enough.

    But it really is a moot point when you consider that this President and a Democratically-controlled Congress passed an $800 billion bill that did absolutely nothing for our economic situation now or for the longer term.

    We have higher unemployment (at around 9%), higher debt (now at $14 Trillion) and huge deficits (3X the amount of Bush’s worst deficit) to boot.

  6. [It clearly obtained results that indicate any positive (supposed) net job creation by the stimulus was dwindled to a net ZERO by August 2010 at a cost of $400K per job “created”.]

    So you think the stimulus created less than 2 jobs? You’re a moron.

    [Why don’t you ask one of the 9% unemployed in this country how enormous that success is?]

    Unemployment would have been about 1.5% higher without the stimulus. But that’s not the real problem. It’s the outsourcing of our manufacturing jobs overseas — mainly to China — that’s our real problem. And you right-wingers couldn’t care less about those anti-American activities that have helped destroy our economy.

  7. Hey Ben —

    You cited the study. I didn’t . And that study says the net job creation by the “stimulus” was zero by August, 2010. So now I’m a moron because I pointed out to you what the study you touted actually concludes?

    As far as unemployment without the ‘stimulus” — now Ben is making up his own numbers.
    Facts are that, WITH the stimulus, unemployment has hovered at 2% higher than the the rate the Obama administration claimed we would peak if we squandered almost $1 Trillion on his boondoggle. (oh, and that doesn’t include the millions uncounted due to the fact they are no longer looking for employment.)

  8. [And that study says the net job creation by the “stimulus” was zero by August, 2010.]

    No it doesn’t. You don’t know how to read.

    [As far as unemployment without the ‘stimulus” — now Ben is making up his own numbers.]

    Here you go.
    http://cbo.gov/ftpdocs/117xx/doc11706/08-24-ARRA.pdf

    Face it… You want wages to fall. You want unemployment to rise. You want our country to fail. That, asshole, is unAmerican.

  9. Ben,
    This study that you cited indicates a net modest gain (0.6%) with a statistically “not significant “multplier (words of the study author) by the end of 2010….statistically, the net jobs created by the stimulus by late 2010 was zero.

    Even if you want to take a hard number of 0.6 % we still find ourselves at about $300-400K spent per job created –and muchof it for temporary jobs that appeared and then disappeard in 2010.

    That is not enormous success by any stretch of the imagination, as you claimed.

    If you want to now cite the CBO, then what was wrong with my citing the same source earlier with all of the “charts and graphs and stuff”?

    I wish for lower taxes for all, low debt, more private sector employment, less public sector employment (particularly at the Federal level), less government intervention and regulation, and high economic growth. I want a strong defense and a turn back to a more Constitutional America.

    And, Ben, if you want to debate, then debate….but don’t ever claim to know what it is that I want and please refrain from your infantile name calling.

  10. [.statistically, the net jobs created by the stimulus by late 2010 was zero.]

    Well, yeah, if you create 100k jobs at the same time the economy is shedding 100k jobs, you’re not going to have a net gain, but without creating those jobs you’ll have a net loss of 100k jobs.

    [I wish for lower taxes for all, …, less government intervention and regulation,]

    That’s exactly what put us deep in debt and destroyed our economy.

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