Stimulus: Bold Promises Confront Dreary Results

Last January President Obama commented on job losses during December, 2008:

Clearly the situation is dire.  It is deteriorating and it demands urgent and immediate action…the jobs report only underscores the need for us to move forward with a sense of urgency and common purpose.  Behind each and every one of those millions of jobs lost there are workers and families who are counting on us as they struggle to pay the bills or stay in their homes…

For the sake of our economy and our people, this is the moment to act, and to act without delay.

A month later Congress enacted Obama’s “stimulus” or recovery act, based on his assurance that it would…

…immediately jumpstart job creation and long term growth

Under the recovery act the government is borrowing $787 Billion to spend on pet priorities of the Democrat Party.

Unfortunately for taxpayers and millions of jobless Americans the stimulus is a catastrophic failure.

december-UI-rate-chart

Unemployment Rate

Eighty-Five Thousand jobs were lost in November.  The unemployment rate remained at 10%. October, was the first time the rate spiked to double digits since 1983.

  • The manufacturing sector lost 27,000 jobs
  • The construction sector lost 52,000 jobs.  This was the sector that was supposed to benefit most from Obama’s “stimulus.”
  • The Leisure and Hospitality industry shed 25,000 jobs.
  • The financial sector, having benefited from about $500 Billion in bailouts added 4,000 jobs.
  • Employers have terminated 3,423,000 jobs since the stimulus or Recovery Act was enacted in February.
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1 Comment so far

  1. Drew on January 12th, 2010

    Liberty Works has done a fine job of chronicleing the spread between economic reality and shallow promises. Despite a fawning press and the incessent Bush blaming the truth is sinking in. The beat goes on.

    The public is growing weary of the incessant abdication of responsibility by the Obama Administration. One can only imagine that if a campaign debate were had today someone would ask: “President Obama, do you really want the job, and the responsibilities that come with it, or do you and Michelle just want to attend gala balls, give flowery speeches, and throw adolescent tantrums in the sandbox, blaming George?”

    Academicians argue about the “true” unemployment rate. There is the standard 10% rate, and the “frustrated worker” 17%. Whatever the reality, I’m sticking by my prediction of a GDP that goes sideways at 1-2%, and the potential for an 11% unemployment rate.

    And if these clowns stick to their anti-business mantra, we might even see a double dip. If so, goodbye Obammy.