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  • Morning Bell: President Obama's Failed Stimulus

    When President Barack Obama sold his $787 billion stimulus package to the American people, he set one metric for success: jobs. Specifically, President Obama promised the American people he would create 4.1 million jobs by the end of 2010. According to the President’s plan, the stimulus should have lowered the nation’s unemployment rate below 8% by this August. That is the objective standard the President set for himself.

    And according to objective data released by the Bureau of Labor Statistics this morning, President Obama’s policies, and his stimulus package, have been complete failures. BLS reports that the number of unemployed persons increased by 466,000 in August raising the nation’s unemployment to 9.7% … the highest it has been in 26 years.

    Faced with the failure of their signature economic policy, the Obama administration trotted out Vice President Joe Biden to defend the stimulus yesterday in a speech to the Brookings Institute. Biden claimed that the stimulus bill created or saved between 500,000 and 750,000 jobs. This is demonstrably false. Job creation has fallen since the stimulus became law. When Congress passed the stimulus in February the new hire rate had fallen to 3.2%. The most recent data, from June 2009, shows that after the stimulus passed, job creation fell even further to 2.9%. Employers are creating fewer jobs than they did before the stimulus was passed.

    Other data also shows that job creation has fallen sharply. Gallup surveys show that far fewer Americans report that their companies are hiring than a year ago. Last August 37% of Americans reported their companies were hiring. That figure has now fallen to 24%. Lower job creation accounts for roughly two-thirds of the increase in unemployment since the recession began.

    Why has private-sector job creation fallen so sharply? The obvious and broad answer is the recession. A more precise answer is that business owners have grown wary about the future of the economy and consequently business investment has fallen sharply since the recession began. As businesses cut investments in new projects they have less need to hire, and job creation falls. As long as business investment remains low and entrepreneurs hold back from starting new enterprises, job creation will remain low–and unemployment, high.

    Yesterday Vice President Biden said the stimulus “doesn’t reflect a lack of design; that was the design.” This is exactly why the stimulus has failed to reduce unemployment. Congress spending tens of billions of dollars on highway projects does nothing to encourage any business owners who do not build highways that potential investments will succeed. Spending tens of billions more to bail out state governments does not encourage an entrepreneur to take the risk of starting a small business. Government spending programs do not encourage the risk taking and innovation and investment needed to spur lasting job creation.

    Who creates jobs? Employers with profitable businesses, investing and creating wealth. The stimulus bill was a grab bag of traditional liberal priorities that did nothing to encourage private sector employers to invest or create jobs. If anything the stimulus discourages investment and job creation. The enormous increase in federal spending that President Obama has undertaken raise the prospects of vastly higher taxes or rapidly rising inflation.

    The federal deficit is expected to approach $2 trillion this year, and to remain well above $1 trillion for many years to come, doubling the national debt in just five years. This situation is not sustainable, but businesses can only guess how the federal government will restore order to its fiscal house, knowing full well that successful businesses make an attractive tax target. In the face of such a threatening environment, it is not surprising that job creation has fallen since President Obama signed the stimulus.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    46 Responses to Morning Bell: President Obama's Failed Stimulus

    1. Marcel, Maine says:

      Now we have Biden lying through his teeth. This is juyst more evidence of a culture of lies and deceit in the White House. And we are supposed to believe their statements on Health Care??

    2. Michael, Omaha, NE says:

      Add three more school districts in Omaha, NE. The Millard, Bellevue and Papillion-LaVista school districts will NOT be showing the address. The exception to the rule is if it fits into the curriculum of a government class.

      http://www.omaha.com/article/20090904/NEWS01/7090

    3. Jim, Wisconsin says:

      All we really need to know is the one, staggering truth: this crime syndicate has spent more in seven months of Obama's presidency than all the prior presidents from George to George: Washington through Bush.

      Stop and think about that. No, I mean really, stop. And think.

      We are told today that the unemployment situation has improved because the rate at which new filings are submitted has diminished slightly. Yet the number of Americans without jobs continues to decline. By the magic of spin and Barak-ratic sleight of hand, we can ignore those who are working, but far fewer hours than they want and need to, and we can ignore those who have simply given up looking for a job.

      In the meantime, our democracy has died, as deToqueville predicted when he wrote that democracy would last only until the majority decided to vote themselves a share of the treasury.

      They promised to "spread the wealth". Yet they are not redistributing wealth, they are redistributing INCOME from the productive to the non-productive. And they are writing IOUs that your grandchildren will spend a live in involuntary servitude to pay.

      How stupidly we chose in November.

    4. Jim, Wisconsin says:

      Correction in my prior post: …the number of Americans without jobs continues to increase…

    5. Lloyd Scallan - New says:

      Biden has continued to lie throughtout. This is not just NOW. This latest lie is just another long string showing how low Obama and his lackeys will stoop to deceive the American people in order to hide the truth thus "transform" this country into the socialist, Marxist state they have intended since Obama was invented. Yet almost all of the left national news media continued to NOT report the facts, just as they did during the campaign.

    6. Ben C, Ann Arbor says:

      I find it intersting that Reagan was roundly criticized for his "trickle down economics" by Democrats and the left and now we have learned that "trickle down stimulus" is ineffective. Obviously neither extreme works well although I recall we did recover from the recession with Reagans policies a litttle faster. How about Congress split the difference and help the small business person with Invesment Tax Credits and lower tax rates. A concept.

    7. R Tom Wells says:

      You are absolutely correct in the statement that the jobs are not created by increasing PUBLIC JOBS! Any Economic 101 business school class could prove this as false! Producers pay for everythingand everyone that doesn't PRODUCE. If you manufacture a product, you are addig value and that is producing new wealth. Handing the producer's money over to a someone in a non-producing PUBLIC job doesn't add any value to the economy. It is a drain on the economy and only furthers the recession.

    8. david peacock; newna says:

      just words; just words; remmeber that line, he needs to refund the money he does not have back to the taxpayers;now, he is a failure; all the money is being held back to buy elections in 2010;; pork barrel it barry.this guy is always in a hurry to go nowhere get him out of washington now.

    9. Kevin, Medina OH says:

      Heritage,

      I am a small business owner with approximately 40 employees in a capital intensive business. You are exactly right on when you state,

      "business owners have grown wary about the future of the economy and consequently business investment has fallen sharply since the recession began. As businesses cut investments in new projects they have less need to hire, and job creation falls. As long as business investment remains low and entrepreneurs hold back from starting new enterprises, job creation will remain low–and unemployment, high."

      Due to the uncertainty created by this administration and the rapid rate of foolish change, I am hanging on to my cash and hunkering down. New products, new equipment, new markets, new jobs, all require a tremendous amount of entrepreneurial effort and capital. In the past, you could be reasonably assured of a return on your effort and capital investment. Now, I am certain that the fruits of my labor will be taken from my company and given away to satisfy this administration's short term political whims.

    10. Tom King says:

      Demonstrably false from your article could be shortened to "lies." I appreciate your civility but our civility has been stepped on so badly since January I would like to see the term "lie" used since it is shorter and definitely most accurate.

      Thanks for all you do.

    11. Joan Sarasota FL. says:

      Czar Van Jones and all the other czars and friends of Obama are thugs of one kind or another. Obama is a narcissist. When will people stop defending them just because they are democrats. Harry Truman wouldn't have sat on his butt and let this go on, he would have fought to get his party back. These people now are just using the democratic party

      as a means to take control.

    12. Ron Thompson says:

      It's failing to us, but to the President it is a success! I have never before felt that a President of the United States would be trying to cease power and junk the Constitution, as this indvidual is doing! He has the complete cooperation of the leadership in congress and the czars he has picked are equally disturbing in their attitudes toward our country. He is waiting for the riots to start so his plan can be completed. there has been nothing from the administration to stop anything and turn the economy around. if the public got together and started the turn around without government involvement that would foil the whole plan! but how will start the effort?

    13. M. Lynn James, Utah says:

      You need to read the articles that you quote more carefully. In your statement about Van Jones you say that "Green Jobs Czar Van Jones admitted yesterday that he signed a petition accusing President George Bush of deliberately allowing 9/11 to happen". The article actually says "A top environmental official of the Obama administration issued a statement Thursday apologizing for past incendiary statement and denying that he ever agreed with a 2004 petition on which his name appears". Such misstatements occur all too often in your postings and undermine the creditability of The Heritage Foundation.

    14. Dean, Lititz says:

      The president and congress put a bulls eye on the back of all small businesses. The words comming from this admin. are one of the big reasons jobs are not being created. Businesses are keeping their heads down and watching their backs. I am one of them, I don't make $250 K but my customers do. The customers I use to have.

    15. Bob Veigel, Arlingto says:

      It is not only the stimulus that has failed, it is all of Obama's programs, either in place or in the process of being in place. Obama is one big complete and utter failure and Nation destroyer. America, wake-up.

    16. Richard Cancemi, Arl says:

      Obama and his cadre have never owned a business nor ever run one, not even a lemonade stand! They have spent their lives in "public" agitation via Community Activism and "Progressive" party politics that believe that the State is supreme and everyone must support the State! Labor belongs to the State! Marxism! Is it any wonder that they are supporting job creation in all levels of government?

      All their efforts are aimed at taking over Businesses in one way or another. They believe they can run them better and "for the good of the people"!

      From a political point of view they are Marxist-Socialists!

      From an American point of view they are Traitors!

      From a Capitalistic point of view they are nincompoops

      From a personal point of view we need to be rid of the whole rotten bunch!

    17. Dean- Texas/Alaska says:

      James from Utah, in your own statement Van Jones admitted signing the "petition," that's all, now he claims he didn't believe it? Do you want people who will sign Petitions containing acusations they don't believe in authority? If you want to believe people who will say any lie to cover their true beliefs, that's your problem. Please don't expect the rest of us to continue to be so gullible. Wake up to who these people really are, and their plans for our freedom!

    18. American Patriot, C says:

      If this prevaricator in chief were a republican his impeachment would have been a done deal. Unemployment is at an all time high and hope is at an all time low and like his other failed programs, healthcare reform is another lost cause. The only winners in this administration are the illegals and the undertakers who will be busy burying the folks who are denied healthcare by trained professionals other than pseudophysicians( nurse practioners, aprn's physicians assistants). I guess he will make up his losses from the taxes he increases on the undertakers and the moneys he no longer has to pay in social security and disability since those folks are toast. Wake up America. The Astroturf King is at it again. (axelrod and company). Lord knows what he is going to do now to make this loser in office look good.

    19. Tina Smith of Florid says:

      Thank you, Patriots, for all the information you send to us. Been noticing that all our shopping centers are losing many of their tenants due to the economic turndown. Empty stores – no jobs – large companies eliminating their stores in many areas – less taxes for local areas – Cities' taxes going up to cover loss of revenues. where does it end?

    20. Ken Jarvis - Las Veg says:

      HF – They need a calender.

      " President Obama promised the American people he would create 4.1 million jobs by the end of 2010."

      Hey, Mr. HF – the END OF 2010 IS MONTHS AWAY.

    21. Kristina, Gloucester says:

      OH, but you all don't understand. The private sector is greedily not spending their money so the government has got to do it for them. Since business owner are sooo stingy and rotten and only the benevolent government can make right the evils of such a lot. I want to thank the small business men and women that have taken it on the chin under this administration. You are the one's who risk, scrimp, save, invest and put your heart into making this country work and taking on the responsibility for not only taking care of your family but of helping others take care of theirs through employment.

    22. Dean - Dayton, OH says:

      The Stimulus was not about creating jobs but growing government and its power and by design (I think) the bulk of the "stimulus" funds will remain unspent until about Feb 2010. What will then happen is that those funds will be spent heavily in the 2010 period to spur a false recovery into Nov 2010 — a "recovery" hailed by the establishment media as proof of Obama's wisdom. The recovery won't last, because it won't be real. But that won't matter. Timed just right, it will allow Obama to claim the economic high road — and defuse his critics during the election cycle. Even now a second stimulus is being planned and its funding will by design be spent in the run-up to the 2012 election cycle.

      Why do I think this. Primarily because the bubble the Fed/Gov created has not been allowed to unwind. To do so would make the recession even worse. The toxic assets still remain in our banking system. No real recovery can begin until these are flushed out of the system. Geithner and Bernanke know this. Thus, all the Keynesian spending will continue the malinvestments in the economy. Where are most of the stock market gains coming from. The banking and financial community. The central banks behind their "green curtains" are responsible for a lot of this low volume activity. Only the Austrian School economists predicted the financial crisis and only they seem to understand what is happening to us.

    23. Pollyanna, Laguna Be says:

      Interesting that the media practically published Joe Biden's whole address, but they neglect to mention townhall meetings, polls against Obama's presidency, etc. Where exactly is the media?? If it wasn't for Fox News and the internet we'd all be in the dark!! No wonder newspapers are failing – there's nothing in them.

    24. Dean- Texas/Alaska says:

      ” President Obama promised the American people he would create 4.1 million jobs by the end of 2010.”

      The only catch, is that you'll have to move to China. The American economy is shriveling up. I believe by design, to "damn" America.

    25. Pingback: President Obama’s Failed Stimulus | Concerned Citizens of Michiana

    26. Lee-White Tanks AZ says:

      I think a largely overlooked factor in the Unemployment rates can be attributed to the over 60 group.

      These people are on the Retirement Bubble, that is they are/were preparing to leave the job market. Now they are delaying their retirement for the simple reason that their retirement benefits through 401ks or what ever to a real beating.

      These are jobs now being held and not becoming available to folks looking for work.

      I would like to see the numbers on this if they exist.

      This, like the lack of consumer spending, should have been foreseen by this "brain-trust" in WDC (aka Washington District of Corruption). If you don't have it, you can't spend it to retire or go shopping. DUH.

      PC is Thought Control

      LEE

      PS These same idiots are the ones that can't tell the difference in $7Trillion and $9Trillion.

    27. Lee-White Tanks AZ says:

      Oops

      401ks, or whatever, took a real beating.

    28. Whicket Williams Kin says:

      This is Obama's plan ,working to perfection. We MUST change ALL our represenitives, get rid of this communist regime, and repeal everything they have done. The alternative is to live in a failed state, like their Idols.

    29. John, Arizona says:

      There is only one person in the USA who is celebrating Barack Obama as president, and that is Jimmy Carter, who is now probably saying, "At last I won't be seen as the worst president in history!"

    30. Whicket Williams Kin says:

      I can understand what you mean but asking a democrat to come to his senses is moot If he had any senses to come to, he would not be a democrat it this late date

    31. ILY-Wisconsin says:

      No Comment It's all been said, all of the above.

    32. The Captain, New Orl says:

      I bet VP Joe Biden stayed at a Holiday Inn Express the night before he said the stimulus created or saved half a million jobs.

      Van Jones should have stayed at one. Maybe he would have said only some of the radically stupid things he has said. This guy is a joke, but I will bet he has created or saved a bunch of "green" jobs. Maybe he has hired a some leprechons. He is nothing more than one more example of Obama wasting our tax dollars. We need Jones to go to Iran to negotiate with President Ahmadinejad. One thinks the US carried out 9-11 and is poisoning the inner city poor and the other thinks the holocaust did not happen. Won't that be a great conversation? I would pay to be there! NOT!

    33. Judith of The Great says:

      To Mr. White of Az: You asked an interesting question about numbers of working seniors, so I did a little research. Google "howmanyseniorsinworkforce" and go to link "Number of Senior Citizens…"

      You will find interesting stats on this subject. For instance, in 2005, last year numbers were available for, shows that: Mem 65-69 age group make up 33.6% of workforce and women in same age group make up 7.1% of workforce. These figures are expected to grow by 74% by 2014. Very informative study.

      Why does all of this matter?

      Look at the policies of the current administration and you will see that the atmosphere for seniors in this country is becoming downright hostile, in my opinion. SS is bankrupt, Medicare is bankrupt and a major cut in benefits is being considered. Health care rationing is being hinted at, also. 401ks have been ravished due to runaway spending and astonishing debt. Confiscatory taxes are being levied across the board. Costs of goods and services are rising, too. No wonder seniors are unable to retire. You are correct in saying that every senior in a job prevents a younger person from filling that position. (On the other hand, seniors offer the employer a wealth of experience and leadership)

      Every action has a reaction. Either this administration is ignorant of economics or, more troublesome, is deliberately causing this destruction and havoc for it's own political agenda.

    34. ROY FRABEL says:

      Obama really thinks he is the god king Xereses. He says conservatives are cruel they would have you stand on your own two feet. But I am kind I would only have you kneel at mine

    35. Jeff, Colorado says:

      It's a shame that our proud nation has to endure the selfish, abusive, inbalance of power that stems from having an inspired fanatical left unleashed without the checks and balances of a two party system to stop the insanity. I lived through the economic malaise of the Carter period and saw the sun come out with Reagan and again with Gingrich. The spirit of that era will return again and let's hope, as a nation, that we never forget how awful the feeling of being completely out of control with Government spending.

    36. Lynn B. DeSpain says:

      As the World now knows, Obama lies! Americans will take back their Country one politician at a time. Until that time, I recommend that every State become Sovereign and answerable only to our United Constitution and its Amendments and not to a single thing that Congress nor the President demand, request, pleads, nor begs!

      Hozro

    37. Christopher Popham S says:

      Richard Cancemi of Texas—always good to read your

      comments. Glad to see that you don't mince any words! By the way, are you going to be in Washington

      on September 12th? It could be a defining moment in our history, the 21st Century Boston Tea Party to end all tea parties. A few hundred thousand,

      a million people, all protesting against the onslaught of socialism. Should be an interesting

      event.

    38. Richard, Arizona says:

      Nothing is free.

      Every action has an equal and opposite reaction.

      Ignorance is our greatest enemy.

      Politics are typically not on the forefront of most hard-working americans on a regular basis unless a highly controversial issue occurs. The time has come for us who have and have taken the time to educate ourselves on current political events to help educate our friends and family on the current political climate and issues, but make certain that you yourself are not being led by the nose by your particular political persuasion. Instead of trying to debunk their beliefs, thus creating an adverserial situation, encourage them to look at many news sources, both liberal and conservative. Both political parties and media tend to bend the truth, outright lie or not tell the whole truth. We can no longer rely on the press to give us true and unbias information. Question everything and do your research. I know all this sounds preachy, but I felt that it needed to be said.

    39. sandy arizona says:

      Don't we the people have the right and ability to recall any politician who lies, disregards our Constitutional rights, their Oath of Office? It appears Congress and this administration spend outrageously on trips, vacations etc and we pay the bill while on unemployment, fewer hours of work weekly etc.

    40. Brenda Petrick, Port says:

      If we would drill, drill, drill in the USA and offshore, we would become independent of foreign oil and at the same time increase jobs. Price for

      oil would lower and the taxes paid on new jobs would be a bonus to the government. It is a win-win situation.

    41. John W. Fort Wayne, says:

      As an unemployed Electronic Engineer, am I supposed to apply for road and bridge construction jobs to benefit from the so called sucessful stimulus plan?

    42. Dave Schraub, Indian says:

      The problem with this regime, is they know that we can't touch them for two years. They have free rein for two years, and can do alot of damage, until we can change this mistake that the so called American people have made. The people that voted for obama, are not Americans, they are criminals, because they are stealing from you and me. Nothing is free,unles you vote democrat.

    43. Patty Hobbs Wilm De says:

      I am old but I feel the next generation does not get it..So many of the young people love Obama the younger people should get involved and read up on what this man is doing to our country.. he is taking away all incentives to work and give everything free to people. Why would people work if they are given free money for sitting on their butts.. Wake up !!! Americas youth!! Obabma is a great Preacher but he has Never been involved in business or Held a Job!! and he is President of the USA and He is going to ruin many peoles lives…Wake up or you all will be buried in the future!!!

    44. Ella QUINN N.C. says:

      I am glad van jones is gone.Maybe a lot more will be gone eventually.

    45. Bob, Portland, OR says:

      Of course it failed. From the very beginning it was designed to.

      What amazes me the most is extent to which they underestimate us. We tolerate them because we are busy living in the greatest country ever and I am not being arrogant or racist in saying so.

      Just asked the people who risk their lives everyday to come here.

      Yes, Our beloved "Distinguished Holders of Important Offices" (Lenin quote) do underestimate us. But have faith, we do not and will not underestimate them.

      The tide is turning, you have awakened a sleeping giant in America who will not allow you to ruin it.

      From now on there is no free ride for Reid, Pelosi, Dean, Boxer, Feinstein etc. We will pay specific attention to (read) every single bill you try to secretly get through from now on.

      We have put up with your indiscretions, lies and arrogence for too long. No More.

      I do want to thank you though for one thing. In the past few months you have shown us the real you. We didn't realize you really wanted to socialize our country, we thought you were kidding before.

      You see Mr. Dean, when you tell us in plain english that Van Jones stepping down is "a great loss for Americans" you proved to us how you think, who you are and that you have the same communistic notions he does.

      One last thing, we outnumber you at the poles. You all made a big mistake by pushing us "Voting Loyal Americans" too far.

      Stand By…

    46. Pingback: Jay Inslee’s Empty Promises on Green Job Creation | RedState

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