Topic: Budget Office: Obama's Stimulus Failed on Jobs

[CatholicCrusader]

Budget Office: Obama's Stimulus Failed on Jobs
Wednesday, 23 Nov 2011 12:34 PM
By Paul Scicchitano
Source: http://www.newsmax.com/Headline/obama-stimulus-fewer-jobs/2011/11/23/id/419003?s=al&promo_code=D953-1

In a blow to the Obama administration, the Congressional Budget Office (CBO) has concluded that the president’s economic stimulus plan created fewer jobs than expected and “crowds out” private investment.

A new report the CBO released on Tuesday finds that the American Recovery and Reinvestment Act may have boosted the economy in the short run by sustaining some 700,000 jobs at its peak in 2010 but “will reduce output slightly in the long run — by between 0 and 0.2 percent after 2016.”

The report estimates that the total number of jobs the plan produced was far fewer than the 3.5 million the Obama administration predicted during the peak of spending.

The CBO estimates that the stimulus is responsible for sustaining between 600,000 to 1.8 million jobs during this quarter, which lowered the nation’s unemployment rate by as much as 1 percent.

In July, the conservative Weekly Standard estimated that Obama’s stimulus package had cost taxpayers $278,000 for every job it created.

There was no immediate comment from the White House on the CBO report, but officials haveinsisted in the past that the economy would have fallen into a depression without the jobs act..

In September, White House press secretary Jay Carney called it “uncontestable” that the infrastructure projects the act created “were very well managed, came in on budget or under budget and led to the creation of many, many jobs” that would not have been created otherwise.

CBO, a nonpartisan agency, has re-evaluated the stimulus every three months with varying estimates of the total price tag — from $787 billion, up to $862 billion and now $825 billion.

The agency also has changed its model for the spending's impact on the economy, and the new calculations show that the act did less than originally projected.

CBO’s latest report reveals that the top-end decline of two-tenths of a percent is deeper than the agency predicted before the stimulus passed in February 2009, according to a report in The Washington Times.

At the peak of spending from July through September 2010, the American economy sustained between 700,000 and 3.6 million jobs, which lowered the unemployed rate between four-tenths of a percent to 2 percent, The Times reports.

An opinion piece in the Atlanta Journal-Constitution acknowledges that the stimulus failed to keep unemployment below 8 percent, as the Obama administration had projected, but blamed the discrepancy on a greater decline in the gross domestic prodcut than previously estimated.

“In short, in early 2009 we thought the economy had fallen off a ladder,” the article says. “In reality, it had fallen off a six-story building.”

[Sectionhand]

Continuing to tout the stimulus as a job creator despite stark facts to the contrary leads one to believe that Stymie-ites like Carney and Biden are either delusional or flat out liars .

[CatholicCrusader]

Continuing to tout the stimulus as a job creator despite stark facts to the contrary leads one to believe that Stymie-ites like Carney and Biden are either delusional or flat out liars .

I'm thinking they are both

[Pandora]

Continuing to tout the stimulus as a job creator despite stark facts to the contrary leads one to believe that Stymie-ites like Carney and Biden are either delusional or flat out liars .

I am pretty much a macro-economic idiot and even I can tell you that no employer is going to hire a $35k/yr employee in order to claim a $2500 tax-credit if there's no productive, wealth-increasing work for the new employee to do, and there's a lot less need of that because of the people who either can't or won't spend right now.

Of the porkulus money for job creation that went into these phony-baloney "infrastructure" projects creates jobs for only as long as it takes -- and they will be draaaagggggeeedddd out - to finish the project.  Project done?  No more job cause there's no more money.

Of the money that went into Solyndra et. al. made jobs for as long as the loans kept coming.

Keynesian theorized "priming the pump"/stimulus for economic down-turns, presuming the economy as a whole was capable of functioning once it "got on its feet".  These days, there is not so much private sector economy and what there is is being regulated/choked out of existence.  There's very little there there.

[Sectionhand]

Continuing to tout the stimulus as a job creator despite stark facts to the contrary leads one to believe that Stymie-ites like Carney and Biden are either delusional or flat out liars .

I am pretty much a macro-economic idiot and even I can tell you that no employer is going to hire a $35k/yr employee in order to claim a $2500 tax-credit if there's no productive, wealth-increasing work for the new employee to do, and there's a lot less need of that because of the people who either can't or won't spend right now.

Of the porkulus money for job creation that went into these phony-baloney "infrastructure" projects creates jobs for only as long as it takes -- and they will be draaaagggggeeedddd out - to finish the project.  Project done?  No more job cause there's no more money.

That's quite true . What seems to escape the liberal politicians and pundits is the fact that business does not exist to create jobs . Business exists to create profit . When increasing profit and opportunity warrents expansion then and only then are jobs created . Until equitable taxation and regulation is in place and businesses can direct their energies to forward planning without worrying about what's going to happen next month or next year , they'll continue to hunker down and not gamble with their assets . This is especially true in why and how they hire . The hue and cry over " hiring discrimination " ... accepting applications from only the already employed ... is just more silliness from politicians who have never run a business . Business has always "discriminated" when hiring . It only makes sense that an employer wants to hire the applicant who , through education , work experience and temperment is best suited for the job . Any successful business person will tell you that the best pickings for potential employess in key positions will be found in his competitors workforce . Hiring people away from your competitor or at least from a company like your own is a tried and true practice and eliminates a lot of wasted search and training time .

It boils down to common sense ... a dearth of which we've come to expect from our government .

[warpmine]

We have judges legislating from the bench and now we have politicians legislating law to force business to do business. Who would have thought that???

Neither side understands the conceptual premise of what businesses and corporations are formed to do.......earn profit in an efficient manner. The fact that none except a few understand this isn't really any surprise as any exposure to free market capitalism is a rare earth element to be viewed as an expensive high cost exploitation of labor to benefit but a few.

DemonRats fall into this category exclusively and while Pubies seem to understand the concepts, they fall into the trap of being part of a large group where stupidity is the order of the day. Terrified beyond any concept of a dinosaur media that seeks to destroy them no matter what they choose to do, their stupidity forces them to vote or embrace stupid ideas most of which were thought up by conniving socialists whose goals are only to stay in power.

The problem is the Pubies don't want to be looked upon as stingy mean bastards so it's off to vote for some asinine legislation that's usually bad for future generations. There lies the problem, sticking to core principles, the DemonRats can reliably garner the votes of the perpetually stupid and the GOP knows that they can waver in the wind because conservatives have little in the way of a choice but to suffer the shortcomings of representation that hasn't any core values.

Back to square one!