Today in Washington – July 15, 2010
The White House spent yesterday crowing about how many jobs they “saved or created” at a time when they are managing an economy with almost 10% unemployment and destroying jobs in the Gulf of Mexico by banning drilling for 6 months. The AP reports, “Obama has traveled the country telling voters that as bad as things are, they’d be worse without the stimulus. He acknowledges that message is a tough sell. Obama travels Thursday to Michigan to promote batteries for electric cars, one element of his agenda to create jobs.” Bloomberg News reports that House Republican Leader John Boehner (R-Ohio) responded with the following:
No amount of Washington spin or fuzzy math can change the fact that the trillion-dollar stimulus is failing by the Obama administration’s own standards. The American people have had enough of Washington Democrats’ job-killing spending spree.
Speaking of a “job-killing spending spree,” the House and Senate are in session today. The Senate is scheduled to continue have a cloture vote on H.R. 4173, the so called “Wall Street Reform” bill. The House is expected to vote on H.R. 5114, the Flood Insurance Reform Priorities Act of 2010. The Senate Armed Services Committee will have a hearing on the START Treaty and both chamber’s committees will continue work on appropriations bills.
The Heritage Foundation (my employer) blog, The Foundry, today has a post arguing the reasons why the Obama Stimulus failed.
The American people know the President’s stimulus has failed. A new CBS poll out today shows that 74 percent of Americans believe the Obama stimulus either damaged the economy or had no effect. And a Washington Post poll released Tuesday again showed that a majority of Americans disapprove of President Obama’s handling of the economy. So how on earth can the White House claim they “saved or created” 3 million jobs? By rerunning the same economic models that predicted the stimulus would prevent unemployment from ever rising above 8%. That’s right. The White House’s 3 million jobs number is not based on any real world data.
In November 2008, Barack Obama promised that, as President, he would pass a plan that will “mean 2.5 million more jobs.” Conn Carroll of The Foundry continues:
But as employment fell at the end of 2008, President-elect Obama increased his employment promise by one million to 3.5 millions jobs created. At the time, employment stood at about 135.1 million. Using these two data points, one can objectively establish the Obama jobs target for December 2010 at 138.6 million. Fast forward to July 2010 and the latest jobs report shows total U.S. employment at almost 130.5 million. This means President Obama’s stimulus has failed to meet its own standard for success by 7.4 million jobs.
Keynsian Economics does not work. The national debt is at $13.2 trillion and counting. President Obama’s policies have not done anything to stimulate job growth, other than to prop up so called “Green Jobs” and to expand the numbers of people working for federal and state governments. Government created private sector “Green Jobs” will be “No Jobs” if these industries do not show a profit and can turn these government funded up enterprises into a business model that the American people, not the government, will buy. With the impending Obama Tax Increases set to kick in at the end of the year with the expiration of the 2001 and 2003 tax cuts, 2011 may prove to be a terrible year for the economy. President Obama needs to change the course and provide federal spending cuts, tax cuts for average Americans and a ceasing of the Keynsian Economics that has proven an abysmal failure to turn the economy around.