Economic Growth, Part II: Obama’s So-Called Stimulus Was a Flop
by Dan MitchellPresident Obama claimed a $787 billion Keynesian spending bill would keep the joblessness rate at 8 percent or below, so it’s no surprise that the White House is feeling defensive now that the unemployment rate is 10 percent. The supposedly non-partisan Congressional Budget Office has jumped to the defense of the Administration, estimating that Obama’s so-called stimulus actually generated beween 600,000 and 1.6 million jobs. How can that be, you may ask, when the number of jobs has fallen by more than 3 million? The CBO neatly sidesteps that real-world concern by moving the goalposts, using a slightly more sophisticated version of Obama’s “jobs created or saved” alchemy. The CBO simply estimates how many jobs there are now compared to a make-believe baseline of how many jobs there would be “without the law.” Needless to say, this means there is no objective benchmark. The unemployment rate could jump to 15 percent and total job losses could reach 10 million, but CBO would continue to say, for all intents and purposes, that the results from their Keynesian model are more important than any real-world numbers. This is the fiscal-policy version of the Wizard of Oz, and we’re supposed to ignore reality just as Dorothy and friends were supposed to ignore the man behind the curtain. A previous post included a video explaining why Keynesian economics was theoretically flawed. This video specifically debunks Obama’s $787 billion faux stimulus, notwithstanding CBO’s make-believe numbers.
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[...] This post was mentioned on Twitter by Vince Humphreys, Big Government, Big Government, DNC Fail!, Patrick Henry and others. Patrick Henry said: Economic Growth, Part II: Obama’s So-Called Stimulus Was a Flop: President Obama claimed a $787 billion Keynesian… http://bit.ly/7zBwdB [...]
Obama's economic stimulus package?
I didn't get anything or receive any benefits from it, but I heard that those who were entitled all received a watermelon, a box of condoms, and a tube of KY Jelly.
LOL! That's a good one Cowboy!!
Won’t John Maynard Keynes ever die??? His idiotic model is a foreign philsophy used by International Bankers to take over any Country’s economy.
He’s ruling us from the damn grave…just like Darwin did.
CL: They should also get a free VD shot for their STDs, too.
I've tried that Kentucky Jelly before. Didn't spread to well on bread and certainly didn't taste good with peanut butter.
[...] that the $800 billion stimulus would hold joblessness below a peak of 9%. This package also failed, and today the unemployment rate is in double [...]
I went thru the recession-depression in tyhe early 80's under Pres Carter's term (the Fu!@#'G idiot.
My bank raised my Mortgage interest rate from 10% to 17-1/2%. (becuz $ was tight they said). In the meantime, that same bank, was loaning $ to South America or Mexican business interests @ 3%….So what's behind the curtain….Oh they know that "poor people are easier to govern" when their assets are reduced.
Zippo and Nada for me also…
Did you see the vid of 'Bama flippin off the American people?
http://www.cafepress.com/rightwingstuff
Spending taxpayer's money in the private sector kills more jobs than it creates. Like poking holes in a sinking boat to drain the water. The beatings will continue until morale improves
I have a question. It relates to the fuzzy math on the jobs report.
The number released yesterday, said that only 11,000 people lost their jobs last month. In a country of 300 plus million, 11,000 people simply don't show up. I dispute that number.
Then, they said that unemployment went down, from 10.2% to 10%, a drop of two tenths of a percent. Sorry folks, that math does not add up.
Why doesn't anyone else question this number? It is fradulent…….
I didn't qualify and I sure wish the government would have brought the KY Jelly!
They didn't even kiss me, to quote the SNL Chinese leader.
I used to brag about a 14% mortgage myself. Obama is trying his best to make Carter look good. It is sad that before Obama is done we are going to miss Carter. Carter wasn't out to destroy the economy, he just didn't know what to do. Obama knows what to do and is destroying the economy, defense and before we are done the law and the nation.
We all need to press our repersentatives to oust Holder and Tax Cheat Timmy. Until we have someone that know KSM should not be in New York we don't need a Department of Justice. The man is clueless.
If you want to have fun with that call Johnson and Johnson and tell them how much you like it and you want to know why it's not with the other Jelly. They will transfer you around for about an hour before they get someone to explain it is not for normal consumption.
Before you ask, yes there are days I do have way too much free time.
I actually heard that done on the radio years ago by Gary Burbank on WLW in Cincinnati. It was his Gilbert Gnarley character. I remember being in the car laughing so hard I had to pull to the side of the road. If you have never heard him, tune in sometime. He is hilarious.
Smart Stimulus,
Invest in small business that creates 70% of jobs offering 0% interest loans to those with decent credit, place money in to prosperous companies, not companies that are seeing money disappear through losses on every balance sheet.
The only smart thing the government did was request money to be repaid by banks, but they didn't save the money repaid by the banks, it's burning a whole in the senates special interest pockets.
I run a small business and it's very prosperous right now, however, I don't think I would be interested in hiring any more talent right now unless I could acquire a low interest loan to free up liquidity, and loans are scarce – you are only eligible for a federal loan if your business is losing massive amounts of money because they like to pour money down the drain (instead of investing in AIG, they should have just thrown 9.5 million pounds of gold in to the middle of the ocean for no reason and never recover it), because the damages were worsened since other companies went under that could have benefited from AIG's collapse
I have heard him a long time ago, what ever happened to him?
No. Keynes is complewtely debunked, but he's just too damn convenient for politicians, because his notions give them an excuse to spend without limit.
Come on now, why so glum? What are you doing with your money now that you don't have to pay for gas or pay your mortgage? Oh wait, that didn't happen … never mind.
I believe he is retired now. Opened a chain of southern BBQ restaurants in Cincinnati that were very successful as well. Not only a fantastic humorist but also a very good guitar player and harmonica player. Characters include Howling Biind Muddy Slim, Earl Pitts and the aforementioned Gilbert Gnarley. His restaurants always featured live music by blues musicians. He is quite the talent.
[...] This post was mentioned on Twitter by The Noble Patriot, Paul Bernard. Paul Bernard said: RT @TheNoblePatriot: Obama’s So-Called Stimulus Was a Flop #tcot http://ow.ly/J0Bk [...]
"The supposedly non-partisan Congressional Budget Office"
—
I think when you start doubting the impartiality of CBO, you truly lost it.
Also, tell me, folks, if there was no stimulus, as expensive as it was, would there have been more jobs, or less jobs? Come on, now- you graduated from third grade, didn't you?
Well, obviously, another 300,000 people or so found their jobs last month. +0.2%
If Keynes had been debunked, how do you explain that Dow Jones is +60% since March ( just after the Stimulus was passed)?
I don't think about the here and now Twine, I think long term, and it was a terrible long term decision. And if used properly, it would have created WAY more jobs.
I don't think Holder is clueless. He is as far left as Obama and right now, he's carrying Obie's water. I don't think Obie knows what he's doing either insofar as creating jobs. He has little job experience, has never been a manager or executive, never run a company or a payroll. His economists haven't worked in the real world, either. They're theorists from liberal universities throwing spaghetti at the wall to see what sticks. Obie is just here to have fun, stick it to whitey, reward his cronies, game the system and BS his way to president of a new world order, once he sells us down the river.
I highly reccomend, "The Pathology of Evil", Nov.28, THE AMERICAN THINKER,
written by Andrew Thomas. The comments are brilliant!
I think this optimism is temporary due to all the Christmas season hires.
It was nothing but a payoff to the Dems' special interests, those that put Obamao in power and 40 years' worth of Dem pork that never went anywhere. The jobs were either government jobs which never stimulate the economy and if not supported by the private sector, will eventually shrink; some were temporary summer jobs. Very little stimulus money was actually spent on creating jobs.
Of course, there is the matter of most of the money not being accounted for and the suspicion that it's become a Dem slush fund, mostly to help illegally fund the 2010 and 2012 elections.
No stimulus = more jobs.
One of the most evil lies ever told: government can create jobs. OK, I'll elaborate. For every job government "creates" it robs citizens. or borrows in order to create it. This is financial suicide as demonstrated over history and the planet.
<sigh>
You're serious? You're actually reading the Dow Jones Industrial Index as a proxy for GDP growth?
Keynesian stimulus has never worked. Not once, not in any place it has been tried. Not in Japan in the 90's, nor Argentina, nor the New Deal:
I would point out that the two western economies which really are inh recovery are France and Germany: the two which rejected spend-your-way-rich schemes.
Phooey. The number is a projection based on the number of new unemployment claims.
How can the stimulus be considered a flop when we went from 10.2% to 10% unemployment? And it only cost $787 billion.
Your arrogance always inspires me.
Simply pumping taxpayer money into the private sector won't stimulate anything. It is actually more of a detriment to the private sector having to deal with the stimulus money than it is if the company goes bankrupt and comes out of it as a leaner entity.
The stimulus plan was designed to place parts of the private sector under more government control. Once under more burdensome regulations because of the money, the private sector is no longer private as the government will step in whenever they don't like a decision that was made.
[...] learned that Keynesianism does not make sense and that Obama’s so-called stimulus was misguided. In the final installment of this three-part series, let’s discuss the policies [...]
The two numbers come from different surveys. The number of jobs gained/lost is from the establishment survey which surveys large companies. The unemployment rate is from the household survey which is what it sounds like; they survey households by phone. There are always differences in the two numbers. Having said all that, both surveys give us nothing more than a WAG.
You're correct. And, now the question is, "What are they going to do next year?"
It's supposed to be a net number—new jobs less jobs lost.
But it's all surveys and to say the least it's quite complicated and subject to statistical questions. A net of 11,000 barely statistically significant. There is a lot of squirrelly stuff in this month's BLS report—shrinking work force, oddly different numbers in different economic sectors. Take it all witha lot of salt.
If I understand how the "stimulus" actually worked, the federal government increased the national debt to give money to states so they could delay making necessary cuts. Government workers were kept on the payroll by generational theft. No thanks! I'd prefer some public sector job loss and less debt and future taxes.
Who was elected president in 1980, oh yea Regan.
Carter had more job growth than Ragan.
G W Bush had deficiets, the greatest ever, including the TARP 800 Billion.
That was Keynes. Think people before you show your ignorance.
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I really loved that post, I am a little puzzled, and have a quick question. May I send you an email?
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