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  • Morning Bell: Don't Celebrate First Failed Stimulus with a Second One

    Tomorrow is the one-year anniversary of the American Recovery and Reinvestment Act, or as it is more accurately described, President Barack Obama’s Failed Stimulus. When President Obama signed the now $862 billion deficit-spending bill into law, the unemployment rate stood at 7.6% and the U.S. economy employed 133.5 million people. At the time President Obama promised the American people that, thanks to his stimulus, unemployment would never go higher than 8.2% and the U.S. economy would support 138.6 million jobs by December 2010.

    At the one year mark unemployment is now 9.7%, after rising above 10%, and the U.S. economy has lost 4 million jobs leaving the White House 9 million jobs short of the 138.6 million they promised to deliver by December of this year. By any objective measure President Obama’s $862 billion stimulus must be judged as a complete failure. Undeterred by these facts, the White House Council of Economic Advisers (CEA) published a report on the economic effects of the Administration’s economic stimulus plan claiming that there are 2 million more jobs in the economy than there otherwise would have been had the President’s stimulus not become law. But as Heritage Policy Analyst Karen Campbell has documented, the CEA report relies on completely arbitrary benchmark projections that fail even basic standards of economic analysis. If the Administration had used other economic forecasts, the results would not have been as impressive – in fact, some would have shown that the economy lost more jobs after the stimulus package was implemented.

    Armed with their CEA propaganda, President Obama is dispatching his Cabinet officials to 35 communities across the country this week to try and convince the American people that his Failed Stimulus is in fact, a success. The President faces an uphill climb: according to the latest poll from The New York Times only 6% of Americans believe the stimulus has created jobs and 48% of Americans believe it never will.

    One might hope that after $862 billion in failed stimulus spending, that liberals in Washington would take a break from spending other people’s borrowed money. No such luck. The House has already passed a new $154 billion stimulus package and Majority Leader Harry Reid (D-NV) is pushing a$15 billion plan in the Senate, $13 billion of which is a temporary Social Security payroll tax exemption for new hires. This temporary tax break will further increase our Social Security system’s existing deficits, will cost $1 million per only eight temporary new jobs according to the Congressional Budget Office, and will do nothing to decrease long-term unemployment.

    While this would be President Obama’s second stimulus, it would actually be this recession’s third. In February 2008, President George Bush passed an equally useless mix of temporary tax cuts and mortgage grantees for Fannie Mae and Freddie Mac totaling $168 billion. That stimulus did nothing to stop the recession and neither will President Obama’s second stimulus. Our nation simply can’t afford wasting hundreds of billions of dollars and deficit Keynesian stimulus spending every February. Now is a good time to stop.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    45 Responses to Morning Bell: Don't Celebrate First Failed Stimulus with a Second One

    1. Dr Duncan Druhl, Ott says:

      Perhaps the public can be excused for accepting at face value the repeatedly proven fallacies that hackneyed politicians throw out time after time, seeking to generate good will when the realistic commentary would be: "bend over". One suspects that the requirement for more "stimulus" funds comes from the political promises that weren't satisfied sufficiently last time or for promises in anticipation of the huge infusion of campaign funds that will re required for Democrats this autumn. Some may call this cynical. I tend to believe that this is how the US government works in the 21st century: the best government money can buy.

    2. Mary.... WI says:

      They won't stop spending other people's money because it's become an addiction.

      BO, his administration and Congress are taking this country into the abyss…….inexperience, ignorance, selfishness and destructiveness best sums it up for me. They all need to be voted/kicked out!

    3. Blair, Franconia, NH says:

      Do we really need another stimulus program? The first one worked so well. It created,

      or preserved, six million jobs according to the White House website. Yeah, right! And

      if you believe that, I have a bridge in Brooklyn I'd like to sell you. But wait, there's more! If you act right now, I'll even throw in some swampland in Florida for free.

    4. Ken Jarvis says:

      There is a list of 21 GOP in Congress that

      VOTED – NO – On the Stimulus Bills

      but are NOW TAKING CREDIT FOR IT'S PASSAGE.

      The O is gOp stands for OBSTRUCT OBAMA

      Send me an Email – LVKen7@Gmail.com

      and I'll send you the list FOR YOUR RECORDS.

    5. Gary. Nevada says:

      I guess "we" can be encouraged by the fact that the EU, is also being collapsed, which will give Americans a chance to get back to what we know works, an authentic Free Market. Of course, as soon as "we" can get rid of the current crop of Saul Alinsky Marxists, dropping their cigarette butts in the Whitehouse.

    6. Paula Crist, Pennsyl says:

      When will it ever stop, they still don't get it, what can we as average American people do to stop them.? Nothing we do or say seems to sink in, they just are not listening to us and continuing to do what the heck they want to do. I say kick them all out but that will take time and time is something we don't have if we want to save this country of ours and I sure do. My father did not fight WWII to have these bozo's destroy what he and thousands of other fought and are still fighting for. God help andprotect us all, (not Washington idiots)

    7. toledofan says:

      So, the experts agree that we can't sustain this level of spending and can't spend our way out of this recession and it's like we keep throwing good money around hoping it will help. When do the people responsible get the message and stop? When do we start to work on creating jobs and positively influencing the economy to start expanding. How long do we have to wait for a spending freeze or a budget rollback to say 2005? How about really eliminating waste and wasted positions. When do we get the leadership to get the process going? When's the main stream media going to start telling the truth.

    8. john m ludlow says:

      This administration must stop it's socialistic policies and quit trying to destroy the republic. Return to our founding principles and cling stronglly to our constitution!! NOW!!!

    9. Ozzy6900 says:

      Yes, Mr. President, send out your Cabinet to convince the American People that your failure is a success. This is how Liberals and dictators have operated throughout the years. Only the absolutley stupid or faithful followers of Obama (same difference) would believe such total BS! Everyday, I hear more and more ex-supporters of President Obama say they never thought that Obama was this bad. They even say that we (the Conservatives) were right about President Obama.

    10. wallyblu Zion IL says:

      Why do all the experts always use meaningless statictics.

      First the unemployment rate is arbitrary, if you have 10% unemployed and a quarter of them quit looking for work the unemplyment rate goes down to 7.5%, yet there are no more people working.

      Second the jobs created or saved, if you saved or created 2 million jobs and there are 1 million less jobs filled you have actually lost 3 million jobs.

      Why don't they just tell us the total number of people employed? If it is increasing then it's good if it's decreasing then it's bad, all these other figures are immaterial.

    11. Sue From Detroit says:

      The Obama Adminstration is fooling no one but themselves. Again, Obama and his group think the average american is stupid. 2009 and so far 2010 are the years of living in the 1984 novel by Orwell.

    12. Sue From Detroit says:

      The Orwelling Game is the only way Obama Adminstration can govern. They are not fooling the average American.

    13. laurie, hawaii says:

      We all must call the white house and our senators and congressman every day and vote all these corruptocrats out of office……Party is not important ….what matters is the issues, honesty of actions behind a candidates words. Tell all these voters they need to stop the "charismatic" cool-aid drunkeness if you want to survive in freedom……GET SOBER AND DO OUR INDIVIDUAL PART AND GET THEM OUT OF OFFICE NOW!!!!

    14. William Downey, JD L says:

      We aren't folling anyone but ourselves. The idea that stimulus spending described as pro jobs is just silly. Not only is the real unemployment rate ofer 15% (factor in those whose benefits have expired and those who are under employed) but such legislation will eventually kill jobs.

      Why? Simply because at some point taxes will have to be raised on employers, employees and everything we buy.

      One of the reasons why we should not buy the idea of government guaranteed retirement accounts. The government will simply do an Argentina and nationalize them.

    15. Richard Cancemi, Arl says:

      The goal of Progressives is not to "stimulate", "repair", or "strengthen" the economy. They want to bring it DOWN!

    16. Evan, Anchorage says:

      I hate to say that we need to do as Bill Clinton did–but its true. Cut federal employees by 20% and put taxes back to where they were before Bush's temporary tax cuts. We all know what we have to do to gain the world's confidence in our money. Cut spending and raise taxes some what. Lets get to the bargining table.

    17. Darlene PA says:

      Here is a suggestion, put them all on mandatory vacation no pay for the next ten years. Get rid of the IRS and go to a flat 20% tax for everyone. If companies put money back into there companies, in this United States, have that be a tax break only income to be taxed, this goes for State and Local Gov. too. Reward people who are willing to start businesses in this country.

      Fed Gov to only be in charge of very little, State Gov. to be in charge of a little more, and Local Gov to be in charge of more, that way they will be more closely watched by the people, and have to be more accountable.

      Follow the constitution of this great nation. Don't rewrite it to say what you want so you can change it at wim. It is written in plain English.

    18. David,Goldsboro,NC says:

      This whole administration is a failure. They all should resign in shame but we know thats not going to happen. So,I supposed it's up to us to vote them out and kick'em all to the curb. We can do it but we cannot afford to be passive until election day. Lets turn up the heat at every opportunity.

    19. Asa Beck, Centennial says:

      If you track the more important full time employment, not seasonally adjusted, representing the actual total of people working full time in the USA, the Bureau of Labor Statistics shows the current number at 108,777,000. That number is down from July of 2007 by 14,442,000. So that we take seasonality our of the picture it is down 10,317,000 from January of 2007. How many part time jobs exist is not important to the overall economic health of the country. Those have risen at a time when full time positions have fallen. The first stimulus failed miserably and the second should not take place. Yes GDP is up the past two quarters, but it is because we are borrowing at an incredible pace that cannot be sustained. When the interest rates rise and borrowing becomes more expensive, making the dificit larger still, what do we do then? The problem with employment is unfair trade practices and people who do not understand that spending your dollars locally really does make a difference. Buy American!

    20. Mitch - AZ says:

      The only people "stimulated" were gubmint dependents/employees, union goon types and other Obamanoids -pure political payola.

      The Usurper in Chief and his minions have hidden 2/3rds of the original "Porkulus" bill and created a slush fund which they will use to buy all the votes necessary to win in close congressional districts, ala FDR. Look for them to dump millions, even billions into races all over the country.

      Another "stimulus" will be more of the same. Call, write, FAX, email your CongressCreep and let them know we're wise to their embezzlement of future generation's financial security and quality of life….

    21. Jeff, Bellingham, WA says:

      There's not a brain one between the whole lot of them! Obama is the dumbest of them all.

    22. Katherine Mather Lit says:

      You are absolutely correct! God Bless the Heritage Foundation and God Bless America. Katherine Mather Littell

    23. Katherine Mather Lit says:

      You are absolutely correct. God Bless the Heritage Foundation and God Bless America! Katherine Mather Littell

    24. Jeanne Stotler Woodb says:

      My guess is that unemployment may be a high as 15%, the ones not counted, graduates from HS and Coll, never employed full time and not reg. to get benefits, then those who;s benifits ran out, the self employed who also get no workman's comp. Nov and Dec. went up due to holiday hiring, Jan went down as they were out of work again, the chg. in the last few weeks I believe was an adjustment to figures for BHO's benefit. What's going to happen in May/June when the current HS and college grads begin looking for jobs??

    25. Whicket Williams Kin says:

      We must change out at least 50% of our elected officials this time, in order to get them to listen to us We must have the most radical reform since we started all this insane spending, and cut government down until this dept can be eliminated in a few years, or we are finished. that it folks no if and or buts

    26. Christopher Popham S says:

      The comments here are right on target.

      Our government is in turmoil. It is a national disgrace and embarrassment.

      How much more of this socialistic trending are we going to tolerate?

      We can and must at this critical time in history, join forces as one family of 300

      million Americans and show the world, that we are indeed the greatest nation

      on earth.

    27. Mike New York says:

      He was Tutankhamun, the Boy King who briefly ruled Egypt more than 3,300 years ago — and today, modern,,,oops its really Obama, the modern Boy King

    28. BARB, MN says:

      SOME OF THE PORK-BARREL PROJECTS FROM #1 STIMULUS

      http://coburn.senate.gov/public

      Dr. Coburn added that Earl Devaney, head of the Recovery Act Accountability and Transparency (RAT) Board, estimates that at least $55 billion of stimulus funds may be lost to waste, fraud and abuse. However, the final number will likely be much higher. If stimulus funds do not promote economic growth history may indicate that the vast majority of stimulate dollars would have been better off staying in taxpayers’ pockets.

      Ten examples of wasteful stimulus projects in the report include:

      1. $1.5 million in “free” stimulus money for a new wastewater treatment plant results in higher utility costs for residents of Perkins, Oklahoma.

      2. $1 billion for FutureGen in Mattoon, Illinois is the “biggest earmark of all time” for a power plant that may never work.

      3. $15 million for “shovel-ready” repairs to little-used bridges in rural Wisconsin are given priority over widely used bridges that are structurally deficient.

      4. $800,000 for little-used John Murtha Airport in Johnstown, Pennsylvania airport to repave a back-up runway; the ‘Airport for Nobody’ Has Already Received Tens of Millions in Taxpayer dollars.

      5. $3.4 million for a wildlife “eco-passage” in Florida to take animals safely under a busy roadway.

      6. Nevada non-profit gets $2 million weatherization contract after recently being fired for same type of work.

      7. $1.15 million for installation of a new guard rail for the non-existent Optima Lake in Oklahoma.

      8. Nearly $10 million to renovate an abandoned train station that hasn’t been used in 30 years.

      9. 10,000 dead people get stimulus checks, but the Social Security Administration blames a tough deadline.

      10. Town of Union, New York, encouraged to spend a $578,000 grant it did not request for a homelessness problem it claims it does not have.

      "The most potent weapon in the hands of the oppressor is the mind of the

      oppressed." –Steve Biko

    29. Louis L C F Levy Hou says:

      To be able to stop such acts means also to be conscious of what could be suggested and keep to one's own straightened line. This is rendered all the more difficult because one does not ackenowledge that we are at war and that it takes all possible convoluted ways and means.

    30. A Go California says:

      Administration has no shame. No one dares to stand up and talk to the American people. They won't have the guts to step down for the sake of the suffering people. Anyone has acknowledged their so many lies? Maybe they are waiting for an impeachment process????????

    31. Mike, Chicago says:

      At they rate they're spending money there in Washington using the same old failed neoliberal economic policies that have been damaging the country for decades the day is going to come soon that even the military may have to worry about finances. We can't have that now, can we?

    32. bigdave, ocala fl says:

      It is really quite simple. We the PEOPLE must DEMAND Government employees/staff/rented property must be cut immediately by 40%; Politicians pay/benefits must be cut immediately by 30% along with their franking priviledges; no more payouts to immigrants from the social security system; SS system offices CLOSED except for the barest of essentials. Applied for SS disability recently, got a call from a woman who could not say my name properly, and its an easy one, and I could barely understand her. That is where ths SS taxes are going, to pay income to IDIOTS in the SS administration!! Just wait til YOU are ready to retire, all the money you and your employer paid for YOU have been stolen by thieves in the government, and they will soon come aftter your 401K and retirement accounts! Its on the way and has been discussed behind closed doors by people who don't give a rats ass about you and yours! People supported by the Ken Jarvis's of the country!

    33. Ken Jarvis says:

      MORE GOOD NEWS FROM THE RECOVERY ACT.

      ===

      From a report of State Hwy Officials.

      1,125 Bridges have been improved, replaced, or newly constructed.

      21,400 Miles of Pavement have been improve, resurfaced or widened.

      17,00 Safety traffic management projected completed.

      630 Miles of Bike lanes, sidewalks, or Mitigation projects are underway.

      7,450 Buses have been purchased.

      2.500 Projects completed,15,000 are underway or will be by spring.

      280,000 direct jobs have been created or sustained

      Total Employment = 890,000

      Nearly 70% of Transportation Contractors received recovery work.

      ===

      LVKen7@Gmail.com

    34. robert sargent westv says:

      free interprise and less government creates employment.spending our tax money creates debt.obama knows what he is doing,he is dragging the greatest country ever into the abiss.stick to the constitution,the government soul job is to protect the country.stay mad and vote them out in 2010 and 2012.

    35. Kzoobob, Michigan says:

      Even when tghe American people tell Congress to make cuts, stop spending, stop increasing taxes, we don't want universal health care, follow the Constitution, etc.; they think they either no better, we are dumb or we won't notice. Well the time has come for them to find out we know better, we are not dumb, and we do notice.

      Make legislation single purpose, don't attach pork.

      Stick to Constitutional responsibilities and stay out of state and personal areas;

      Balance the budget, not by raising taxes, but by cutting programs unwanted by the people.

      Ban lobbyists from writing legislation and actually read legislation before voting.

      Actually listen and vote the wishes of your constituaency;

      and get your act together, you are making a laughing stock of your office.

      Don't tell us you are for something and then vote the opposite way;

      Don't campaign by telling us what you think we want to hear when you have no intention of doing that when you reach office. My family calls that deceit and lying.

      Political office holders really are expected to be a cut above not overpaid pick pockets.

      Sure we know you have high ideals and good intentions, but the road to hell is paved with good intentions that are never acted upon. Don't take us with you on your journey.

      Respectrully submitted,

      KzooBob

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    37. SAMUEL says:

      OUR GOVERNMENT—is already on the road to socialism. The people that got help or retained their jobs, were governement jobs. Yes, it helped the teachers. What they got was more money to add more jobs, which gave teachers more money to blow and in their pockets. The big RACE TO THE TOP, another big farce. GOVERNMENT JOBS has learned years ago how to get more money form us the tax payers. Most government jobs spend more money to get more money. IF THEY DON'T BLOW IT ALL FROM ONE YEAR TO THE NEXT……..NO MORE MONEY IS GIVEN.

      Stop spending our money on government JOBS AND GOVERNMENT UNIONS, WITH ALL THEIR BENEFITS., AND BAGGAGE TO KEEP THEM IN A JOB.

      MORE MONEY IS ZERO MOTIVATION!!!!!!!! Cut off the money spigot.

      Fire half of the government employees that do nothing productive. Close the goverrnment post office to three days a week.

    38. fridz, california says:

      "Majority Leader Harry Reid (D-NV) is pushing a$15 billion plan in the Senate, $13 billion of which is a temporary Social Security payroll tax exemption for new hires."

      Since everything they do is to break the system, our job is to demystify these looney lefties so people would stop voting for them. An important person a while ago said "everything Obama does is to remake America in his own image", but the entire progressive (aka. lefties) has been doing this for decades & one need to look no further than the K-12 schools, or shall we say "the academia" in its entirety?

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    41. Alex Rakisits, Torri says:

      I work for the 68 largest Commercial Construction Company in the US. Our work loads have deminished from $1,000,000.000 to $4,500,000 for the up comming year due to State Governments putting projects on hold along with the privite secture not wanting to do any thing at this time because of the eccomomic condition that exist.

      The Stimulus package is a big joke. It has not helped the Commercial Constructin Industry.

      The only construction it has helped some what are the companies doing highways and bridges and they are not hiring more employees.

      I think The Heritage Foundation should look into the construction industry and see what is going to happen for the next two years.

      Our unemployment will certainely go up.

      Alex Rakisits

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