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Another doomed stimulus coming

Stimulus #1 cost $787 billion and left us with 10.1% national unemployment, an additional $4 trillion in debt, and 14 million people still out of work. Tonight, Obama will try to sell us on another $400 billion Stimulus plan. Who is REALLY getting that money?

The real answer is failing state and local governments using it to continue their wasteful spending (including line their own pockets), rather than the businesses that can actually create the jobs. Many states used the 2009 “stimulus” for pork barrel or completely useless projects, such as $1.9 million provided for California scientists to “capture, photograph, and analyze” ants. We have states and the entire nation on the verge of collapse and they want to study ants, or how video games affect the elderly? This just goes to show what the status quo does with your and my money when they have it handed to them on a $787 Billion platter.

During Obamas speech, remember: if he said the last stimulus created jobs and helped bring unemployment down, that was only after the national average went from 8.2% to 10.1% in 8 months. The down in this case is a drop from 10.1% in October 2009 to 9.8% in November 2010, or a drop from that 9.8% to the latest July 2011 numbers “claiming” 9.1%. I suspect the reported percentage will go up in a few days after Obama passes the stimulus. Remember, the higher it is when it passes, the more it will “appear” to have worked, or at least release falsified numbers close to the time of his speech, and modify them to a more realistic number after. The number crunchers will claim some counties somewhere did not turn in their information on time so the data need correction. The same way that Houdini “appeared” to get himself out of the chains when he had the key all along. Our key is getting rid of 90% of these Democrats, 75% of these Republicans, massively restricted spending, government program and employee cuts, tax cuts and so much more.

Some perfect examples taken from the last stimulus (caution: numbers and math ahead, its just how my mind works these things out):

California got a $45.8 Billion “stimulus” and their books are going even deeper in the red well past $375B in debt (as of  Sept 2011), as well as an unemployment rate that is almost doubling; They went from 7.6% in July 2008 to 12.8% in July 2010, and still at 12% for July 2011. The latest numbers show CA is at a -19.04% Debt to GDP ratio.

But wait, how can that be? July 2009 census for CA showed just shy of 37 Million. July 2009 unemployed showed 2.127 Million. Simple math shows that is approximately 17.4% unemployment, not the claimed 12.8%. Seems someone is cooking the books there in order to claim the unemployment is not as bad as they say it is.

Obamas own Illinois got $14.7B and are running into the same problem. $121.8B debt, 6.9% (7/2007) to 10.7% (7/2010) unemployment (with it still at 9.5% for 07/2011) and a -18.58% current Debt to GDP ratio.

My home state of Florida got $17B (which happens to be one of the lowest per capita amounts) but some of the money actually went out to corporations and businesses. FL debt is at $127.7B, unemployment went from 6.8% to 12.0% for 2007 to 2010, but it has dropped to 10.7% as of 7/2011. The debt to GDP ratio is also down to -16.64%. Also remember that Florida is pretty well split. The panhandle has been a long time conservative region of the state, its 4 primary counties only shows unemployment in the 6.9 to 7.7% range for July 2011. Yet if you look at the much more liberal portion of the state, 38 of Florida’s 67 counties reported double-digit unemployment figures in June 2011. Most of the counties in the southern half of the state, including Miami-Dade have the highest unemployment with 14 to 17% percent of the workforce idled.

This is a very common situation across the US and just shows that most states took the money in order to continue their excessive spending including ways to pay for pork barrel projects (waste) they couldn’t previously afford, rather than pass along the money to businesses and corporations that actually employ people. So out of the 56 states (love that one) including DC, did any state actually see a drop in unemployment instead of a gain? Simple answer is no. The much harsher reality is that it got worse nationwide, despite Obamas claim that unemployment dropped since passing the first “stimulus”.

With a few exceptions like mentioned below, most states saw a 3% to 5% unemployment increase from 2008-2009, with many of them either breaking even or adding another full percentage point from 2009-2010. Even adding in 2010-2011 numbers, for most states, that little break even or gain was negated, essentially putting most state back at 2009 unemployment levels, which is still massively higher than the numbers under Bush and the GOP Congress. The typical “end of Bush term” unemployment rates were in the 3-5% range until the Democrat Congress took the majority in early 2007. Now we have the problems inherited by this Democrat Congress who massively ruined our economy, and a President who goes right along with it, so instead of it actually dropping when money is tossed at it, most states are in the 9-12% range. Lets not forget one major player that helped create this mess, the financial system deregulation and schemes of slick Willy Clinton.

The “winner” in the low unemployment contest is the state with the least number of employees to begin with: North Dakota. They got a $1.1B “bailout” and unemployment went from 3.2% in July 2008, to 4.0% in 2009, back down to 3.5% in 2010, and another drop to 3.3% for 2011, nearly matching their pre-Obama stats. Looking at the numbers, it seems the best place to be during these tough economic times is the Central Plains.  Each of these states from the Dakotas down to Oklahoma, including Wyoming, Montana and Iowa, are all enjoying under 7% unemployment rates. Only Kansas and Oklahoma stayed a touch over 7% for a short period in late 2009 to mid 2010 before dropping back down some.

Even if we expand this to the national level, just about every state sees a drop in unemployment, drop in taxes (or keeping low taxes), and an increase in tax revenue whenever the Republicans keep the majority of state and federal government seats, and the Governor seat for longer periods of time. You can look at any chart over the past 100 years and see the obvious trends: Republicans bring prosperity, Democrats bring despair.

If you also look at this 2009 map of how much each state got, you will easily notice that the typical “Blue” states got the majority of the money, while the typical Red states got very little. Seems stealing from Democrats is fine since their state is getting it back, $5 to 15B at a time, while ensuring the Republican based states see very little whether they “need” it or not.

The numbers and voter opinions simply show that the typical Red Staters don’t want a stimulus, but since they got it shoved down their throats, they are actually putting it to use to create jobs and reduce state debt. Unfortunately the much higher population areas that tend to contain many more Blue Staters have taken the bulk of this bailout and wasted it, thus now we have Obama appeasing them with more. The best way to implement socialism is to get as many people reliant on the government as possible in the name of fairness, Democracy and freedom, so by the time they realize there is no fairness, no freedom and their Democratic nation no longer represents its people, the only solution is civil war.

I honestly believe we are less than 5 years away from a civil war unless we get a Republican in office and a majority on both houses of Congress that can make wide sweeping changes, spending cuts, tax cuts, and massively shrink the government and its payroll. I do not foresee this happening since most of the candidates from both sides are part of the status quo… civil war here we come, sad but true.

 

Debt to GDP ratio and other Debt numbers taken from http://www.usdebtclock.org/ and Stimulus data also taken from http://dailycapitalist.com/2010/12/02/who-got-the-stimulus-money/

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