Skip to comments.Morning Bell: 10% Unemployment Shows Objective Failure of Obama Stimulus
Posted on 11/06/2009 10:25:45 PM PST by FromLori
Last week the Obama administration issued a report purporting to show that the Presidents $787 billion economic stimulus plan had saved or created exactly 640,329 jobs. Such a precise number for such a fuzzy concept as jobs saved or created immediately raised doubts about the veracity of the report in any honest Americans mind.
And since that report was issued, a once compliant press has filed story after story tearing the credibility of the Obama administrations job creation claims to shreds. Just enter the words stimulus, jobs, and report in a Google News search and these are just some of the headlines you will receive:
Stimulus Job Report Filled With Errors Stimulus Watch: Salary raises counted as saved jobs White House Tally Appears to Overstate Stimulus Jobs Reports Show Conflicting Number of Jobs Attributed to Stimulus Money
Stimulus Watchdog: job counters confused, need guidance
Why stimulus jobs arent here to stay
Many California jobs saved by stimulus funds werent in jeopardy
Luckily the American people do not need to count on phony new jobs studies to provide the objective data necessary to hold President Barack Obama accountable for his economic policies. The Bureau of Labor and Statistics has been collecting accepted and standardized data employment data since the 1940s. When President Obama was selling his $787 billion stimulus to the American people he promised unemployment would never rise above 7.8% and that by 2010 the U.S. economy would employ 138.6 million jobs.
Today, BLS released its monthly jobs report and the numbers speak for themselves. The economy shed another 190,000 jobs in October, bringing the number of jobs lost since Obama was sworn in to 3.8 million. Worse still, the unemployment rate rose from 9.8% to 10.2% percent. With only 130.8 million jobs in the U.S. economy, President Obama is now 7.8 million jobs short of what he promised the American people. That makes President Obamas stimulus an objective failure.
The Obama stimulus failed because it was based on faulty Keynesian beliefs. Heritage fellow J.D. Foster explains:
The Keynesian stimulus theory fails for the simple reason that it is only half a theory. It correctly describes how deficit spending can raise the level of demand in part of the economy, and ignores how government borrowing to finance deficit spending automatically reduces demand elsewhere.
Fortunately, the economys natural recuperative powers may be ending the recession. Last week the Commerce Department reported that the economy grew at 3.5%. But if this recovery is going to include job growth along with GDP growth, then job killing initiatives like Obamacare and cap and trade will have to be abandoned.
Speaker Nancy Pelosi (D-CA) has confirmed she will break her pledge to put the final language of the health care legislation online for 72 hours before a vote.
On just seven days notice, Tea Party protesters organized well over 10,000 people for a rally against Obamacare at the Capitol yesterday.
Taxpayer funded abortions and free health care for illegal immigrants are the two major obstacles Pelosi must overcome to pass Obamacare this Saturday.
Leftists in Congress are now writing personal bailouts for favored constituents.
The American Medical Associations decision to endorse the House reform bill before its members had a chance to weigh in has dissenting doctors threatening to split the group.
Fear not, the spending was written to kick in next year, just in time to ensure reelection.
The first thing one better understand is the Stimulus Bill was not a stimulus bill. The losses caused by Wall Street and their enablers - US Government, was so massive that if we let the free market take its course, Americans must undergo a short but very sharp Depression (unemployment will be more severe) in order to let housing prices, commercial real estate and etc to hit the real bottom before money on the side moves in to take the assets off the table. Problem with this approach is no politicians will risk losing an election to do the right thing. The stimulus bill is really a stabilization bill with one severe price tag - huge deficits and rampant inflation.
Freepers need to remember, Bernake is an astute student of the Japanese recession. I think the feds know that no politician will support short severe Depression, so the only viable option is to stabilize the situation with excessive spending and hopefully navigate thru the process with controlled inflation and inflate the massive debts away. Spending will be used to prop the banks up and prevent them from collapsing, buying time for inflation to eat away the massive debts.
IMHO no matter who wins in 2012, this gameplan is set in stone with very little wiggle room for the future POTUS for atleast a decade. In the mean time unemployment and social disorder will be part of our future daily life.
The stimulous package was a big fat payoff.
I still want to know who is manipulating the stock market.
Can Soros and Buffet, alone, keep the false front going?
The market should be in the tank.
Saw this quote on Laura Ingraham’s website:
“If we don’t act swiftly and boldly, we could see a much deeper economic downturn that could lead to double digit unemployment.”
— Pres-elect Barack Obama, pushing the stimulus bill
I think it is a combination of bernanke, soros, buffet, goldman, at the behest of obama. Remember earlier this week when buffet bought the railroad shares well he is an obama buddy and he expects the railroad to get stimulus money. Nice to have the ear of the president.
I had an article somewhere I have to look for it but when goldman upgrades crap boom and Lloyd is an obama buddy big time contributor and frequent visitor to the white house.
Well said but I think they will fail in the end.