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Morning Bell: 10% Unemployment Shows Objective Failure of Obama Stimulus
Posted By Conn Carroll On November 6, 2009 @ 8:50 am In Ongoing Priorities | Comments Disabled
Last week the Obama administration issued a report  purporting to show that the President’s $787 billion economic stimulus plan had saved or created exactly 640,329 jobs. Such a precise number for such a fuzzy concept as jobs “saved or created” immediately raised doubts about the veracity of the report in any honest American’s mind.
And since that report was issued, a once compliant press has filed story after story tearing the credibility of the Obama administration’s job creation claims to shreds. Just enter the words “stimulus”, “jobs”, and “report” in a Google News search and these are just some of the headlines you will receive:
Luckily the American people do not need to count on phony new jobs studies to provide the objective data necessary to hold President Barack Obama accountable for his economic policies. The Bureau of Labor and Statistics  has been collecting accepted and standardized data employment data since the 1940s. When President Obama was selling his $787 billion stimulus to the American people he promised unemployment would never rise above 7.8% and that by 2010 the U.S. economy would employ 138.6 million jobs. 
Today, BLS released its monthly jobs report  and the numbers speak for themselves. The economy shed another 190,000 jobs in October, bringing the number of jobs lost since Obama was sworn in to 3.8 million. Worse still, the unemployment rate rose from 9.8% to 10.2% percent. With only 130.8 million jobs in the U.S. economy, President Obama is now 7.8 million jobs short of what he promised the American people. That makes President Obama’s stimulus an objective failure.
The Obama stimulus failed because it was based on faulty Keynesian beliefs. Heritage fellow J.D. Foster explains :
The Keynesian stimulus theory fails for the simple reason that it is only half a theory. It correctly describes how deficit spending can raise the level of demand in part of the economy, and ignores how government borrowing to finance deficit spending automatically reduces demand elsewhere.
Fortunately, the economy’s natural recuperative powers may be ending the recession. Last week the Commerce Department reported that the economy grew at 3.5%. But if this recovery is going to include job growth along with GDP growth, then job killing initiatives like Obamacare  and cap and trade  will have to be abandoned.
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2009/11/06/morning-bell-10-unemployment-shows-objective-failure-of-obama-stimulus/
URLs in this post:
 a report: http://www.recovery.gov/Pages/home.aspx
 Stimulus Job Report Filled With Errors: http://www.chicagotribune.com/news/chi-ap-wi-stimulusjobs-erro,0,5991664.story
 Stimulus Watch: Salary raises counted as saved jobs: http://www.google.com/hostednews/ap/article/ALeqM5jMNoef6xDenBbHWO0Im6rIjDmAgAD9BOSE601
 White House Tally Appears to Overstate Stimulus Jobs: http://online.wsj.com/article/SB125729438785426663.html?mod=WSJ_hpp_MIDDLETopStories
 Reports Show Conflicting Number of Jobs Attributed to Stimulus Money: http://blog.heritage.org http://www.nytimes.com/2009/11/05/us/05stimulus.html
 Stimulus Watchdog: job counters confused, need guidance: http://www.ajc.com/news/stimulus-watchdog-job-counters-187576.html
 Why stimulus jobs aren’t here to stay: http://money.cnn.com/2009/11/02/news/economy/stimulus_jobs_dtv/?postversion=2009110314
 Many California jobs ‘saved’ by stimulus funds weren’t in jeopardy: http://www.sacbee.com/topstories/story/2309303.html
 Bureau of Labor and Statistics: http://www.bls.gov/
 he promised unemployment would never rise above 7.8% and that by 2010 the U.S. economy would employ 138.6 million jobs.: http://www.foundry.org/2009/10/02/morning-bell-the-obama-jobs-gap-grows-again/
 monthly jobs report: http://www.bls.gov/news.release/empsit.nr0.htm
 explains: http://www.heritage.org/Research/Economy/bg2302.cfm
 Obamacare: http://www.heritage.org./Research/HealthCare/wm2683.cfm
 cap and trade: http://www.heritage.org/Research/EnergyandEnvironment/tst050709b.cfm
 she will break her pledge: http://www.weeklystandard.com/weblogs/TWSFP/2009/11/pelosi_breaks_pledge_to_put_he.asp
 Tea Party protesters organized well over 10,000 people for a rally against Obamacare: http://blog.heritage.org http://www.politico.com/news/stories/1109/29183.html
 Taxpayer funded abortions and free health care for illegal immigrants: http://www.washingtonpost.com/wp-dyn/content/article/2009/11/05/AR2009110505441.html
 personal bailouts: http://abcnews.go.com/Politics/congress-private-laws-bailout-americans-special-cases/story?id=8995047
 dissenting doctors threatening to split the group.: http://www.politico.com/livepulse/1109/AMA_endorsement_has_group_split.html#
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