The economic stimulus applied to the US economy by the Obama administration has failed. Unemployment was officially 7.3% when the stimulus was started and today, unemployment stands at 9.1%. Obama’s hand picked team of 3 noted economists have prepared a report, available here, that tries to put a positive light on the outcome of the application of the stimulus to the economy, but the hard facts say otherwise. Bottom line, the economy would have been healthier if no stimulus had been injected at all.

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Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job

When the Obama administration releases a report on the Friday before a long weekend, it’s clearly not trying to draw attention to the report’s contents. Sure enough, the “Seventh Quarterly Report” on the economic impact of the “stimulus,” released on Friday, July 1, provides further evidence that President Obama’s economic “stimulus” did very little, if anything, to stimulate the economy, and a whole lot to stimulate the debt.The report was written by the White House’s Council of Economic Advisors, a group of three economists who were all handpicked by Obama, and it chronicles the alleged success of the “stimulus” in adding or saving jobs. The council reports that, using “mainstream estimates of economic multipliers for the effects of fiscal stimulus” (which it describes as a “natural way to estimate the effects of” the legislation), the “stimulus” has added or saved just under 2.4 million jobs — whether private or public — at a cost (to date) of $666 billion. That’s a cost to taxpayers of $278,000 per job.

In other words, the government could simply have cut a $100,000 check to everyone whose employment was allegedly made possible by the “stimulus,” and taxpayers would have come out $427 billion ahead.

Furthermore, the council reports that, as of two quarters ago, the “stimulus” had added or saved just under 2.7 million jobs — or 288,000 more than it has now.  In other words, over the past six months, the economy would have added or saved more jobs without the “stimulus” than it has with it. In comparison to how things would otherwise have been, the “stimulus” has been working in reverse over the past six months, causing the economy to shed jobs.

Again, this is the verdict of Obama’s own Council of Economic Advisors, which is about as much of a home-field ruling as anyone could ever ask for. In truth, it’s quite possible that by borrowing an amount greater than the regular defense budget or the annual cost of Medicare, and then spending it mostly on Democratic constituencies rather than in a manner genuinely designed to stimulate the economy, Obama’s “stimulus” has actually undermined the economy’s recovery — while leaving us (thus far) $666 billion deeper in debt.

The actual employment numbers from the administration’s own Bureau of Labor Statistics show that the unemployment rate was 7.3 percent when the “stimulus” was being debated. It has since risen to 9.1 percent. Meanwhile, the national debt at the end of 2008, when Obama was poised to take office, was $9.986 trillion (see Table S-9). It’s now $14.467 trillion — and counting.

All sides agree on these incriminating numbers — and now they also appear to agree on this important point: The economy would now be generating job growth at a faster rate if the Democrats hadn’t passed the “stimulus.”


Art Laffer and Peter Schiff on the same page?

Thanks for your attention.


About The BETAA at NJIT Mentor

Long Distance Mentor

2 responses »

  1. Questionman says:

    Just imagine how the economy would be without the stimulus. If so many were against the policy, why did they take the money and claim credit for the resulting economic productivity?
    If conservative Republicans had been in control, we would be in Great Depression II. Remember the Great Depression of 1929, which happened after 8 years of Republican deregulation and tax cuts for the rich? Republicans controlled the White House, Senate and House from 1929-1933. They claimed the economy would fix itself, just as they do so today. They did nothing, and the Crash of 1929 grew and grew and grew, until we had 25 percent unemployment. Thankfully, the Republicans were not in control this time. They would have done nothing, and Republican posters at The Hill would be begging the streets, their stomachs growling for sustenance.

    • The BETAA at NJIT Mentor says:

      Ha, ha! are you kidding me? Democrats and Republicans are cut from the same cloth. Obama is behind the eight ball. He listened to TPTB and did what he was told to do. TPTB want the US economy to crash and Obama and the Legislative branch are carrying out orders! Some of the Tea Party Repubs are doing the right thing, but everyone else is doing what they are told to do! Oh, by the way, Ben Bernanke admitted to Milton Freidman that he was right, the FED did cause the Great Depression. Do some homework before you post next time!

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