Obama Created or Saved 450,000 Government Jobs, Lost 1,000,000 Private Sector Jobs With Stimulus
Posted by Jim Hoft on Monday, May 16, 2011, 5:49 AM
Worst. President. Ever.
Obama signed the failed $787 billion stimulus bill his first month in office.
No wonder the Obama Administration doesn’t talk about the created or saved stimulus jobs anymore. There weren’t any. According to a new study the Obama-Pelosi Stimulus bill created 450,000 government jobs and delayed or destroyed 1,000,000 private sector jobs.
And, it only cost you $1 trillion.
Power Line reported:
Economists Timothy Conley and Bill Dupor have studied the effects of the American Recovery and Reinvestment Act (the purported stimulus bill) with great rigor. Earlier this week, they reported their findings in a paper titled “The American Recovery and Reinvestment Act: Public Sector Jobs Saved, Private Sector Jobs Forestalled.” The study concludes,
Our benchmark results suggest that the ARRA created/saved approximately 450 thousand state and local government jobs and destroyed/forestalled roughly one million private sector jobs.
Here is the Obama jobs graph.
Democrats blew a trillion dollars to delay or destroy a million private sector jobs.
What a disaster.
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Published May 23, 2012 at 4:57 am - 64 Comments
JKB commented:
Stimulus? More like the shaft. And we got it someplace uncomfortable. Like the back of a Volkswagen. BTW, that clip kind of explains how we ended up with Obama and what happened to us. The country was on the rebound.
forest commented:
We knew this from the get go. Public sector unionists get to keep their jobs for another year or two, the recession gets extended, and we are on the hook for another trillion in debt. It’s a disaster and we warned people before it was passed.
jomojava the infidel commented:
Come on folks, you just don’t understand.
There’s nothing more important than a government job.
The One said so. That settles it.
rampart ranger commented:
“Help Services” and “non-HELP Services?”
Should I run this through Google Translator to figure out what this graph means?
Dewormer commented:
This is really interesting analysis and rather refreshing to see presented, given the usual “economics-as-faith” structuralist believers like Krugman tend to dominate the trade.
In a sense, it’s not surprising, given most of us in the private sector have felt the crowding out when the obese Federal government expands a few more pant sizes. A few years ago, my former firm saw a classic example of the illusion of government economic stimulus on a micro basis with Federal broadband subsidies allocated through the USDA. While major funds were called for in the legislation, the rules committee (overseen by corruptocrat Democratic Senator Tom Harkin) wrote the language so that only incumbent local exchange monopolies could qualify for the loans. This not only deprived all the growing competitors of access to the funds, but stuffed even more cash into the pockets of the incumbents who were the problem.
As a result, instead of cost competitive broadband, we ended up with five years of Monopoly Telecom $130/month DSL running at speeds below 300 kbps. Remarkably, I’d attend conferences where the government analysts would complain about poor saturation rates in rural America for broadband (who apparently can’t afford such insane rates) and the need to, you guessed, throw another few billion dollars at the incumbents to “help.”
We observed that it was clearly both parties helping sustain the elites. Effectually on a spending basis, there really isn’t a material difference between the two.
Big L commented:
Heere is an example of where the money went. The Wash Post did an article about stalled,defunct housing projects. They identified 700. The 700 consumed 400 million dollars.
At HUD during this time was Andrew Cuomo and the assistant deputy Kristen Gillibrand.
We know where they are working now…
Guy in Ohio commented:
#2 – forest – got it right.
We knew this would be the outcome. Unless the stimulus money was pumped directly into the private sector, and REAL jobs were produced, the result could only be the equivalent of welfare…. higher overhead for the taxpayer, more people dependent on the government, and NO substantial impact on private sector jobs.
Even a complete idiot, with no formal economics training could see that. Which leaves us wondering … is this administration dumber than a complete idiot, or was this done on purpose. I think we all know the answer to that question …
It time to clean house people. The longer we wait, the worse it’s going to get, and the harder it will be to salvage anything of value in our country ….
Militant Conservative commented:
This is what socialism looks like.
powder is dry
#1AMERICAN commented:
whoever gets the republican nomination to run against the moo slum better have the balls to show these graphs and bring up all failed things this crooked admin has done
Old One commented:
Ovomit & the democorrupts are obviously running a replay of the failed New Deal lunacy of the idiot elitist professors that dubbed themselves the Brain Trust. Let us hope that voters change Washington & turn off the left’s Ivy League professor manned kool aid spigots at the polls.
With the unfolding leftist orchestrated events in the Middle East we all need to say a few prayers that it doesn’t take a cataclysmic world war to end the second great depression that Obowma, the democraps, & the goonion commies have mavnufactured just for us.
kato commented:
The very best president the public parasites ever had.
KR commented:
Some of the Stimulus money went to keep afloat state union jobs like teachers.
But the money has now run out and even Jerry Brown is laying off teachers.
When state revenue was high the dems and Arnold just kept over spending instead of being prudent and building a rainy day fund.
bobbymike commented:
Think of the overall effect on the economy of 450,000 tax consumers and 1,000,000 less tax payers.
The intent of stimulus is to create (I’m not a stimulus supporter but just showing how it is “supposed to work”) the 1,000,000 tax paying jobs using tax dollars in the hopes these jobs are retained long term so they end up paying back the taxes.
Obama’s plan did the exact opposite, are we surprised by this?
jc commented:
We got a chunk of the supposed stimulus in my area and it was used to support the school systems for one year to keep taxes down and teachers working. Money’s gone and ‘the chickens have come home to roost’. Guess what went higher in this year’s school budget that all of us as homeowners are now going to have to pay come July 1??
KOW commented:
1,000,000,000,000 / 300,000,000
That is $3,333.333 per man/woman and child.
If they would of just given every man/woman and child that money, our economy would be in way better shape. It would of been like getting a $10,000 credit card for the average home to buy all those goods and services they like. It would of allowed people behind in the mortgage to catch up. It would of kept home prices up as there would not be as many cheap homes on the market.
I am sure I am wrong, as I am likely taking too much of a common sense look at it.
KOW commented:
Of course us buying all those good and services would of meant more people keeping their jobs to supply those goods and services. The Government would of got money back in taxes, both local/state and federal.
Jules C commented:
Oh buy government doesn’t create jobs, business does. So…. where are the damn jobs?!!! How come you aren’t slaming them for taking their businesses overseas? For the growing monopolies that will tell you what you will pay for everything? No, be outraged over anything a democrat does. That’s definitely someone who is thinking for themselves.
whatif commented:
This is a perfect display of Progressive/Liberal logic:
Spend taxpayer dollars to save the public sector at the expense of private sector jobs – even though the private sector jobs generate the tax revenues to pay for the public sector.
Second example of Liberal logic:
The liberals never thought about how they would continue to pay for these “saved” public sector jobs while losing private tax revenue generating jobs.
Proof positive that Liberals are about pursuing a vision devoid from logic & reality.
StrangernFiction commented:
But he means well.
Robert commented:
If we don’t get all these spendhappy Democrats and half the go along big government Republicans out of Washington, the countryis toast.
Robert commented:
“Jobs, jobs, jobs.”
“Focus like a laser”
Freddy commented:
I do not see anything regarding the long term effects of the interest on the debt increase. The stimulus bill was paid for with BORROWED money. We will be paying the interest on this debt for DECADES.
This GENERATIONAL THEFT will take a major toll on the economy going forward!
Ma commented:
Talked to an Obamabot the other day who thought Obummer was doing great and doing all he said he would do. Also still complaining and saying it’s all Bush’s fault where we are now.
waterman3 commented:
l.a. (lotta angles) spent their stimulus on red light cameras, radar guns, and parking meters that take credit cards.
Mkelley commented:
The “stimulus” in my area has mostly gone toward bike paths that we don’t need and upgrading two old buildings that should have been torn down years ago. They actually built a bike path from Missoula, MT to Hamilton, MT, a distance of 50 miles. As you can imagine, there is almost no bike traffic on this waste of money, especially in a year when winter lasted from October until May despite all the “global warming”.
jorgen commented:
Since Trump is not running in 2012, hire him to say “You’re fired” 450,000 times.
SandyfromChesterfield commented:
Our tax dollars pay for these government jobs and for their union dues that they pay so that the union can lobby against the privated sector. Something definitely wrong here.
I am tired of hearing this administration say that we need to put more money into education, infrastructure and the environment. These are all union jobs!
ericr64 commented:
Reallocation is not creation.
Questionman commented:
And yet businesses are sitting on historic amounts of cash. Home ownership has been a publicly funded venture since the 20s or 30s, by both sides of the aisle. As Otter said “you ***ed up – you trusted us.” So get over it and stop trying to lay the blame for decades of poor choices (most from Regan, Clinton, and Bush) at the feet of this administration.
Chisum commented:
And yet businesses are sitting on historic amounts of cash.
====================================================
And why are businesses sitting on the cash?
The cash buildup shows the deep caution many companies feel about investing in expansion while the economic recovery remains painfully slow and high unemployment and battered household finances continue to limit consumers’ ability to spend.
The buildup has a big downside for companies, which get little return on their money because interest rates are low, but it reflects the relatively few opportunities they see to deploy their cash more creatively.
[...]
Outside of the slow pace of the recovery, uncertainty over regulation and ObamaCare are adding to the problems. Also, the current debate over taxes plays another big part of this. A two year extension doesn’t do much to ease concerns over the long-term since most businesses tend to plan in longer timeframes, stifling plans for investment or hiring.
Oh yes, it’s Reagan, Clinton and Bush’s fault!
wow13 commented:
This guy really hand picked the data! He even misquoted the conclusions of the article he sighted! The one million number was just a benchmark and not even real data. The confidence interval for private sector jobs lost was 0.16 to 1.378 million. That error margin is so large the numbers have absolutely no meaning! The only legitimate conclusion is that ARRA created at best 659,000 jobs with most of them being in the private sector.
You poor neocons must be desperate if you are publishing trash like this!