Obama: The Stimulus Hoax “Has Worked as Intended”

On Saturday (July 11) President Obama went on defense against criticism of his radical economic agenda, especially the so-called “stimulus” or Recovery Act.  By asserting that “this Recovery Act has worked as intended,” he tried to push back the emerging consensus that The People have been  conned.

The costs of ObamaNomics, unprecedented increases in government spending, debt, and power over businesses and individuals, are being passed into law with reckless urgency by Congressmen and Senators who don’t even read the thousand-page bills they vote for.  The first promised benefit of ObamaNomics, immediate employment for millions has, predictably,  turned out to be a fantasy.

In his Saturday Address President Obama claimed

…the Recovery Act has … led to new jobs building roads, bridges and other infrastructure projects…

But the actual data, from the Labor Department’s Bureau of Labor Statistics contradicts the new jobs claim.

Heavy-Construction-Jobs

Obama’s Saturday message continued:

Now, I realize that when we passed this Recovery Act, there were those who felt that doing nothing was somehow an answer.  Today, some of those same critics are already judging the effort a failure although they have yet to offer a plausible alternative.

One of President Obama’s favorite deceptions is shooting down an idea nobody offered, in this case “doing nothing.”  In fact there were credible alternative proposals, based on strategies that have proved successful in the past, including reductions in progressive tax rates,  removal of some of the thousands of bone-headed federal regulations, and lawsuit reform.  But President Obama waved those ideas away without consideration. Instead, he and his allies in Congress and the media followed the advice, “never let a crisis go to waste,” and are using the recession as a pretext for a rapid, aggressive expansion of government cost and power including:

  • Borrowing and spending more $1.5 Trillion on politically favored causes, and bailout subsidies for favored banks and corporations, leaving a debt to be paid by future taxpayers;
  • Constant threats of tax increases;
  • Threats of a government take-over of the health insurance industry, and price controls imposed on medical service providers;
  • Passing energy/global warming legislation that will create an artificial energy shortage, and transfer Billions of dollars from consumers and out-of-favor businesses to political insiders, favored businesses and government;
  • Government assuming ownership and control of major banks, AIG Insurance, and General Motors.

These actions drive down business investment and risk-taking at the very moment we need it most to create new jobs, and thus will delay economic recovery indefinitely.  Obama’s message from Saturday continues:

But, as I made clear at the time it was passed, the Recovery Act was not designed to work in four months – it was designed to work over two years.  We also knew that it would take some time for the money to get out the door, because we are committed to spending it in a way that is effective and transparent.

But that’s not what he said in January when the massive stimulus/Recovery Act was being hyped as critical, emergency legislation, that Congress must enact immediately.

In a January economic address Obama said:

…I have moved quickly to work with my economic team and leaders of both parties on an American Recovery and Reinvestment Plan that will immediately jumpstart job creation and long-term growth.

…we’ll invest in priorities like energy and education; health care and a new infrastructure that are necessary to keep us strong and competitive in the 21st century. That’s why the overwhelming majority of the jobs created will be in the private sector, while our plan will save the public sector jobs of teachers, cops, firefighters and others who provide vital services.

As the chart below shows, the promised private sector job creation did not materialize. Indeed, the Obama team has reversed itself and now predicts the unemployment rate will rise instead of decline in future months.private-sector-jobs

1 Comment so far

  1. […] first Stimulus Hoax article (scroll down or click here) we compared the wild promises President Obama’s made in January to sell his […]