The first Stimulus Hoax article (scroll down or click here) we compared the wild promises President Obama made in January to sell his “stimulus,” with his much more sober and pessimistic comments after almost five months of continuing, catastrophic job losses. We included charts showing rapidly declining employment in the private sector, especially in heavy construction, where Obama had promised that “shovel ready projects” would provide jobs to millions.
Today, we respond to several readers who asked for charts showing government employment data.
First, a chart showing that private sector employment has been falling steadily for a year, and the stimulus, that borrows and spends $787 Billion, plus interest, has not brought about the immediate halt in job losses Obama promised.
Almost half the 5.6 million private sector jobs lost in the past twelve months have been lost since the stimulus passed in February.
The next chart shows that federal government employment increased throughout the second half of 2008, even as private sector employment declined. Then, after the stimulus passed, there was a sudden increase in Federal employment. Even after a decrease in June the federal payroll is still up by 34,700 since the stimulus passed.
State government employment has steadily decreased since August, 2008. The Stimulus has made little if any difference. In his weekly address The President claimed his stimulus has saved tens of thousands of state government jobs. The data show a loss of 18,300 state jobs since the stimulus passed.
Finally, local government. Here, Obama will claim credit for preventing job losses. But unlike the private sector and state governments, the data show insignificant changes in local government employment over the second half of 2008. Thus, it’s hard to tell if there would have been more local government layoffs without stimulus spending. Since the stimulus passed they have laid off about 12 thousand, or a tiny fraction of 1% of 6.5 million employees.