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  • Unemployment Spike Defies ‘Stimulus’ Claims


    In January, President Obama pressed for an $800 billion economic “stimulus” package to turn the economy around. Though the bill largely consisted of increased spending on traditional liberal priorities, the President claimed that it would “create or save” 3.5 million jobs. The President’s economic advisors predicted that unemployment would rise to 9 percent by 2010 if Congress did not pass the stimulus bill, but that with the stimulus unemployment would stay below 8 percentage points.

    Congress passed the stimulus bill in February 2009 and the President has repeated his claims. President Obama recently said that the stimulus bill has already created or saved 150,000 new jobs and that it will “create or save” another 600,000 jobs by the end of the summer. Asked when the public should begin to judge the effects of the stimulus, White House Press Secretary Robert Gibbs said “I think we should begin to judge it now.”

    In that case, the stimulus must be judged a failure. The figure above shows the projections the administration made in January with and without the stimulus bill, and the actual unemployment rate since then. Unemployment has risen not only above what the President’s advisors predicted would happen if the stimulus passed, but above what they estimated would occur without the stimulus. By the President’s own measure, the stimulus has failed. The promised benefits from the $800 billion in additional federal spending and debt remain invisible.

    Posted in Economics [slideshow_deploy]

    63 Responses to Unemployment Spike Defies ‘Stimulus’ Claims

    1. Gary, soon to be fro says:

      Did anyone really believe the "stimulus" was about anything other than taking all freedom away from the American people?

    2. dennis florida says:

      it's obvious the stimulus didn't work. most of us already knew that. we said leave it alone and let the people handle it. but nooooooo. the government had to get involved and make a huge mess out of it which resulted in thousands of hard working people out of a job. as of june 29. my boss sadly informed me that there was no more work. there were no jobs even to bid on. i have been in masonry for over 30 years. work at this job for 23 years. now thanks to knothead obama. i am planning to seek work in another state.and leaving my family in the process. are these people in washington so greedy for money and power,that they cant see just how all this is effecting the american people. what kind of monsters are they. at least i still have my home.my prayers go out to all them less fortunate than me

    3. lLeonard; Branson, says:

      Can we say gotcha? It was never about helping the economy. It is about reaching out to put more and more americans under the control and dependency of the US government. Personally I prefer to put my trust in my Lord and God not governments and definitely not politicians.

    4. Barb mn says:

      It took Obama a few months to cause this mess! It will take years to fix! So many ways to AVOID this, but Obama has HIS agenda and HIS agenda ONLY.

      Destroying the Constitution (too weak to uphold and too jealous that others respect, appreciate and can.)

      Falsely claiming energy independence just to further his lies and further burden the people financially and mentally WITH LIES AND NO EXISTENCE OF MAN-MADE GLOBAL WARMING. As long as we have NATURAL RESOURCES that work, USE THEM!

      Making health insurance crisis, as he misleads, misinterprets it as a necessity! etc…

      All the president has, is and continues to do is rob all tax paying, independently living, Americans! The day to come for Obama to declare the origination of dependence. 3rd world here we come.

      The money went somewhere. I'm sure some or someone is happy.

    5. Spiritof76 says:

      With all due respects, any one who believed that reckless spending by government through borrowing and printing money will generate jobs is a fool that probably looks for a dollar bill under his pillow every morning.

      Unemployment will skyrocket to well above 10% and will shortly be accompanied by double digit inflation and double digit interest rates. The current administration and the socialists-laden Congress are killing American productivity by eliminating freedom. Let us stop discussing in gentle terms niceties of the statistics. It is witch-doctor economics that can never make any sense.

    6. Reggie Panama City, says:

      Unemployment continues to rise, at a greater pace then the alarmists imagined. I am not surprised. BHO's chief of staff said earlier this year, "never waste a crisis", and to further their aims they stoked the fires of panic, which only pushed an already bad situation further over the cliff. Our economy is based on people assuming risk for the potential of reward. This administration seeks to punish those risk takers. What does he expect us to do? He's sawing on the limb and is upset when we climb down the tree.

    7. Jamie Farren, Illino says:

      I wish we would all be honest, not mislead, not misunderstand, not mistake, not failed to achieve. Quite simply put, "The President LIED", his cabinet LIES, He currently LIES. Just once I would love to see the media, or a politician or someone with an audience be honest and state in plain language for all the world to hear. There is no Tax Break, that was a lie, The Stimulus projections were lies, We care about the middle class (LIES).

      However there was one thing OBAMA did not lie about…. We have CHANGE, ohhhhhh Brother do we have change…..

    8. Sammy, SC says:

      Aw, c'mon guys! GIVE OBAMA A CHANCE!

    9. Sammy, SC says:

      just kidding…But it just exemplifies that the private sector creates jobs and wealth, not government, so nobody's surprised at what's happening now (except maybe some "moderates" and the Obama-At-Any-Cost crowd).

    10. Pingback: » Financial News Update - 07/02/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    11. Pingback: Unemployment Spike Defies “Stimulus” | LIBERTARIAN REPORT!

    12. Keith somewhere in t says:

      If President Obama is so terrible or _____ (fill in your own adjective), then why did he received a resounding majority of votes in November? And if he truly performs so poorly, can citizens rest assured that Mr. Obama is a one-term President?

    13. dennis florida says:

      leonard, how right you are. the middle verse in the whole bible says IT'S BETTER TO TRUST IN THE LORD,THAN TO PUT CONFIDENCE IN MAN. that should be the center focus of all of us. i truly believe GOD has something great in my future.

    14. Pingback: News You Won’t See In The Mainstream Media Friday, July 3, 2009 — ExposeTheMedia.com

    15. Ben C, Ann Arbor, MI says:

      There has been a fundamental shift from personal responsibility (me) to governement repsonsibility (they). Now that greater than 50% of our population are in the later group we are faced with the demise of our country. This was predicted long ago by Tytler and others. The only hope is to shift back to personal responsibilty. The change will be painful but in the end worth it. My guess is this is NOT the change Obama had in mind.

    16. Dave McDuffie, Aliso says:

      Jobless rate? Obama will soon claim its just like the DOW, "only a tracking poll, we don't pay any attention to it". Can you just imagine the media headlines if BUSH had said that when the DOW dropped from 12k to 11k?! What is not counted are the thousands upon thousands of real estate agents, mortgage brokers, insurance brokers and others who are now making ZERO DOLLARS! Wake up people! Obama's mission is to destroy this country's greatness! Everything he does is for that end. Any socialist destroys the PRODUCERS first! Soon EVERYONE in this country will be a non-producer! Why work your ass off, or even invent something, if the government is just going to take it away from you thru taxation and give your money to some lazy ass who sits at home watching TV all day and claims the system is unjust?! Your APATHY has gotten us to this point. What is next?

    17. Zach, Washington, DC says:

      Did you all miss the part where Obama said the jobless rate would continue to climb for a while? Obviously you did or you wouldn't be posting this.

      Think it through, guys. The government pays for projects that require workers. They get paid, which means they have money to spend (good for the economy) and aren't on the unemployment lines (good for states' budgets). I know we want everything to happen all at once – I would love that – but it doesn't work that way.

      Oh, and please, spare me the "socialism" refrain. Most people aren't buying it anymore.

    18. Darryl in NC says:

      Experience has shown that mankind are more disposed to suffer while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such government and to provide new guards for their future security.

      The time has come. You can not ask a tyrant for your freedom. YOU must stand and fight for it or be content to continue to "suffer the evils" of our current government.

    19. Bob - Arizona says:

      I wonder how many of the Obama supporters are willing to admit they voted for hom? Look around – I don't see many "Vote for Obama" bumper stickers lately. Of course that excludes the UAW and other union people since they are getting all the benefits of his lies and corruption.

    20. Mark, Pittsburgh says:

      Dennis from Florida; God has something great for all of us. Salvation! That greatness may not be here on earth but there is nothing greater and we do have that to look forward to.

    21. Alex, Coral Springs says:

      Dave M… NO WILL WAKE UP. We have to many zombies walking the streets. We do not have a media that will take it to the Government unless he/she in government is a conservative. This is not the country we all knew back in the Reagan and Newt days.

      IT IS SO OBVIOUS that this president is a smooth double talking LIAR better than the rest of them, but can people be that dumb and stupid? The answer is YES THEY CAN and they are. California is a prime example. The corruption and out of control craziness with the state government that's going on over there have been going on for years. It's now caught up to them and the stupid people still keep voting in the same trash that got the state there. It is absolutely baffling to me.

    22. Pingback: News You Won’t See In The Mainstream Media Saturday, July 4, 2009 — ExposeTheMedia.com

    23. Sharon, Akron OH says:

      President Obama is so terrible… you ask why he received a resounding majority of votes in November? Because too many people were wooed by his admittedly eloquent marketing campaign.

      I truly hope we can rest assured that Mr. Obama is a one-term President, and the damage done will be recoverable… I am sick that my children, and grandchildren will be left this legacy of debt… for what? I am sick that everything our forefathers fought and even gave their lives to preserve is being destroyed by this administration. I also hope I remain healthy because I am certainly approaching the age that his government health care system would deem a bad investment. I do not know how anyone who takes the time to read and does not get their news from msn… is not truly terrified of the direction this country is taking.

      Did you hear Obama state today… that we should follow California's lead , they are pulling out of their financial slump…creating jobs and promoting a green environment. I guess you can say anything, because so many of our people do not question the truth in statements like this, they simply assume that if it is being aired on the news, and no one is challenging it, then by golly it must be true!

    24. Gordon, Queensbury, says:

      It is abundantly clear that the "stimulus" has had precisely the opposite effect than was promised. We can only hope that most of Obama voter did not really want to destroy the US and will turn on him when they realize he is an anti-American subversive.

    25. Wayne Hale says:

      The administration knows exactly what they are doing. If enough Americans lose their jobs and become desperate, Obama can ram through his cap & trade bill and universal health care scam.

      We should require they fix Social Security, Medicare and Medicaid first to prove government can stop wasteful spending & fraud in these programs before we even think about handing over our health care.

      Once they have our health care, they truly control us and freedom is a thing of the past.

    26. Aaron in Kuwait now. says:

      I took a job in Kuwait back in 2007 because I saw my job going no where and that lay offs were happening. Luckily, my job in Kuwait is great, but I only intended to be here for just a year to pay off debt and save some money to go back to college and finish my degree. Now here it is in 2008 and I still have the same goals with the added cost of I am engaged to my long term girlfriend and we are paying for a wedding. However, this economic situation has me so scared about the future. I turned 26 today and I am feeling like if I don't go back to school in January that I will never do it. Again though, I have other people to think about. I have to support not only myself but my wife all the while of paying the cost for an education. Should I just stay here another couple of years while the job I have is good and pays well? I mean, I it is ashame that I can not even go and find work that pays a decent wage in my own country. It is quite hard to believe I have moved from a first world country to a third world country just to make a living.

      P.S. Kuwait is not really a third world country but by no means should it ever be considered a first or second.

    27. Aaron in Kuwait now. says:

      lol……… I have to correct myself. It is 2009. Not 2008 as I said in my previous post.

    28. Matthew C Campbell says:

      It is abundantly clear to many millions of Americans that obama dreams of being the first dictator of The United States which means a nightmare to the rest of us. The real challenge lies in enlightening the multitudes of ignorant fools that voted for him minus those who now get it. obviously all of his policies are a means towards attaining absolute power leaving all discussions of his intentions a moot point. It is unbelievable how it came to this but now the country needs loud clear voices to counteract the damage that is being done and restore our nations greatness.

    29. Mark S., Round Lake says:

      Bob – Arizona, I can tell you are from McCain Country. You obviously haven't been in the greater Chicago area lately . . . Obama bumper stickers are EVERYWHERE!!! It's a very unpleasant commute to work everyday up here . . .

    30. Pingback: Pond’rings » The State of the Economy

    31. D.Mac, NE says:

      Obama got everything he wanted in the stimulus package. Granted the recession started before he took office, but the antidote was all his. Obama now owns this economy and the lack of job creation… no more excuses.

    32. Pingback: Jobless Numbers Continue to Climb as Obama Struggles to “Create or Save” American Jobs : Excellence In America

    33. Lynn B. DeSpain says:

      You can always tell when Obama is lying, his lips are moving! If you saw him coming out of Safeway, with a shopping cart full of groceries in Safeway bags, and asked him, "Been shoppping at Safeway?" He would look you straight in the eye, right in the parking lot and say, "No, Albertson's."

      Hozro

    34. Douglas Vaughn, Reno says:

      What the government needs to do is put people to work directly. Get the money into peoples hands so they can spend it. They could give tax cuts but for Demos, that just doesn't make sense. Just put people to work at a livable wage…I NEED WORK SO I CAN PAY TAXES FOR GODS SAKE!!!

    35. Marshall Hill MI. says:

      This fool could not change a light bulb without

      help!

    36. Earl, Queens, NY says:

      Should this, or any other bad economic news, surprise anyone? And just a few days ago V.P. ‘Joker’ Biden was talking about what they inherited from the previous administration, In other words, the “Blame Bush” mentality. Unlike many ignorant voters, I’ve been calling this “The Obama Recession” since 11/5/08. I realize the recession began on Bush’s watch, and he did make some mistakes (some wild spending, bailouts, etc.). But Obama has multiplied that debt to unsustainable levels. And Wall Street never reacted so negatively to an election as in 2008. Thus many people knew what Obama and the Democraps had in store even before 1/20/09. It is my firm belief that that the recession would’ve ended by now had McCain/Palin won.

    37. Eduardo, Brazil says:

      I think that if government can solve everything, why stop in 800 billion? Let´s decree that unemployment is at this moment outlawed! Let´s make also make a provision of hmnn 10 trillion dollars or so for the enforcemente of this new legislation, shall wee?

      Somebody must call the BEP and tell them we´re gonna need more paper money…

    38. Eddie, USMC VE says:

      And to think they wrote people like Sean Hannity and me off as Right Wing Extremist and Right Wing Nut jobs. Hopefully now our ultra-intelligent, college age progressives, Progressives, Socialist, and down right Liberals who thought they would be protected, are understanding what 20 years of indoctrination in the Trinity in Chicago will get you. May not be PC, but it sure is a fact that even the media will soon have to face if they are still in business.

    39. kevink, SLC says:

      I never understood how the govermment felt it could "spend" its way out of debt. They have never run a profitable program of any sort (medicaid, Social Security, Amtrak) and many others. Private business and the desire of the American People to succeed is what will change things in this country.

      And to Zach in DC, if you can not see socialism in this then you are either very blind or just plain stupid. We should not EVER let government run any busines or provide any services to the people, nor should we rely on them for anything other then political structure. Last I checked they work for us.

    40. Pingback: The Obama Economy is Failing « Conservative Thoughts and Profundity

    41. David Patton, Ft Wor says:

      The A.G. of Mass. is suing the Fed. because the D.O.M.A. is in the way of Mass. fully participating in the destruction of the God ordained and designed institution of marriage between a man and a woman?

      There is a connection between the God hating philosophy of most Americans and the decline in the blessings of God we take for granted.

      "The Lord with holds no good thing from those who walk uprightly before Him". Psalm 84.11 "He that walks uprightly walks surely: but he that perverts his ways shall be known". Proverbs 10.9

      At the moment the pervert is celebrated in America and not shamed. God always has the last word, though!

    42. Quenten Jones, Squaw says:

      Is any of this surprising? Get real. Obama/Biden somehow buffaloed the audience of the Ted Mack Amateur Hour [the American zombie set] into thinking they knew something. They don't, and now we're getting what we "paid" for, NOTHING. These clowns are going to make it worse, and the only rational thing left is to tear these clowns down. REMEMBER IN NOVEMBER '10. Smart money got out in April '09, they're not coming back until the circus has left DC.

    43. Vladimir MD says:

      It's look more and more like in former Sovet Union, the same speeches and actions, and more red flags. Do not be brainwash by appearance, follow the money.

    44. Nick, AZ says:

      I've been hearing in the past few days that only 6 to 8 percent of the stimulus money has been spent. I have just a simple question about interest being paid on the stimulus money. Does it start to accrue when the bill is passed or as its being spent?

      I certainly hope it is the latter, I would be even more outraged about this package if we were also paying interest on money that the bureaucrats cannot figure out how to move into the economy.

      Hope someone can answer the question.

      Thank you.

    45. Pingback: A Third Stimulus? Repeating Mistakes Only Creates New Mistakes « Conservative Thoughts and Profundity

    46. dennis florida says:

      i might be wrong, but didn't the financial top dogs come to bush and tell him that if they didn't pass their stimulous package that the u.s. would be bankrupted in 24-48 hrs. and the global economy in 1-2 weeks? does anyone remember this. ……..i could be mistaken.

    47. Ed, Michigan says:

      It's comical that Obama is now defending the stimulus by claiming that "most of it hasn't been spent yet." Wasn't the stimulus supposed to jump-start the economy in the near future? How was it supposed to keep unemployment below 8% if it's so slow-acting? And why was it so urgent to pass it in February (without much time for debate or reflection) if it's a long-term, not short-term, act?

      Ah, we'll never get a straight answer to these questions. Let's just cancel the rest of the stimulus payments and relieve ourselves of some debt.

    48. Mike in Costa Mesa says:

      8 weeks left to "create or save" 600,000 jobs. Who makes this nonsense up? Who actually believes it?

    49. Pingback: Dirty Democrats » Trivia Tidbit of the Day: Part 618 — The Failure of Obama’s Stimulus.

    50. Sam Hill, New York C says:

      Every characteristic of this Economic Depression, and I do mean

      DEPRESSION, is following the 1929 Depression. Recovery of the stock market and the GDP did ocur right through the 1930's and

      early 40's. However, large segments of the population did not recover. The wealth of the population was gone. Many were unemployed and in poverty. This is the long term distinguishing

      marker of the 1929 Depression (1929-1945). The same marker in the 20 year depression in Japan (2nd or third largest economy), still in progress. Now in progress in the US. The US economy will continue to dump jobs for 2-3 years in vast amounts according to the economic charts. Vast segments of the population will experience unemployment and poverty for over a decade. The stimulus package is keeping the US afloat. If it were not working the US economy would have collapsed months ago.

      What really needs to be done is the economic engine of the US needs to be rebuilt and domestic fiscal policies need to be

      change. The present model is not sustainable for more than a couple of years. The US needs more than small business and/or green industry as a US economic engine. These can not provide enough jobs to support the American people. The present domestic policies are a major part of the problem. This at the city, state and local levels. The FED needs to implement a coordinated effort commanding these two components of the economy in a logical structured sequence, holding the old

      components together until replacement. The rest (the many weaknesses)will fall into place including the unemployment problem and falling wages and the GDP.

    51. Pingback: Tag Lines vs. The Truth « Nebraska Redneck

    52. Pingback: Thank You, Stimulus « The Handwriting On the Wall

    53. Pingback: Down, down, down. - Politics and Other Controversies - Democrats, Republicans, Libertarians, Conservatives, Liberals, Third Parties, Left-Wing, Right-Wing, Congress, President - Page 9 - City-Data Forum

    54. Sam Hill, Pennsylvan says:

      Thats one of the characteristics of a depression. When ordinary stimulus will not jump start the economy. Extra

      ordinary measures have already been utilized with little or no effect. There are other characteristics that have already occurred like bank failures, bankrupt businesses, rising

      home foreclosures and most of all extremely high unemployment. This has been coming since 2005. The first sign was the spike in personal bankruptcies (over 2 million).

      Outsourcing and free trade agreements from the early 90's

      have left many unemployed and under employed, and

      uncounted. US was an industrial giant at one time. US

      no longer makes anything of real value. It no longer has an economic engine of any size. It is now small business. Economic growth on paper but not real. An accounting trick.

    55. Pingback: Right Pride Blog

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    58. Pingback: Economists say the stimulus didn’t help | Non eco neo’s predicted it beforehand. Thank you. | Chicagoan's Conservative Chronicles

    59. Pigbitin Mad NY says:

      You people sure are brainwashed by Wall Street to blame the Obama administration. Sure, he's not doing a very good job but to say that Bush is not the cause is kinda stupid. After all, Bush was still the president when I lost close to $150K in the stock market in a week (out of $400K). Yet for some reason you idiots want more tax cuts for the wealthy who have not created ANY jobs for anyone. The companies with the highest paid CEO's who post record profits are the ones doing most of the firing and you guys don't get it. The fat cats used the crash as an EXCUSE to get rid of you and you are going to vote for the same stupid repubicans to allow them more freedom to get away with it. The liberals don't want to take away your guns, we just want you to use 'em on the right people.

    60. Pingback: Politics: Hypocrites.

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