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The Obama record: 450,000 government jobs saved, 1,000,000 private sector jobs eliminated


A few days ago I linked to a report that calculated the actual Keynesian "spending multiplier" associated with the Obama stimulus plan to be very close to 1 (no growth) or less than 1 (negative growth).  I also noted that the lion's share of the stimulus money was granted to the states in order to offset tax revenue shortfalls, and not to efforts that would actually spur the economy.

Powerline Blog just published a summary of yet another recent analysis of the American Reinvestment and Recovery Act which indicates -- get ready for it -- that government jobs made up the vast majority of those "created or saved":

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. State and local government jobs were saved because ARRA funds were largely used to offset state revenue shortfalls and Medicaid increases rather than boost private sector employment. The majority of destroyed/forestalled jobs were in growth industries including health, education, professional and business services.

Naturally, in the minds of government bureaucrats, such a result would be praised as a stunning success. 

Taken together, these two studies perfectly illustrate the true weakness of Keynesian economic theory, which is the propensity of bureaucrats and politicians to use government largess to reward or bribe loyal constituencies and increase the scope of their own power, rather than designing a stimulus that actually puts money in the pockets of private enterprise and its employees.  Like Marx, Keynes failed to understand the realities of human nature, and how those traits could potentially undermine his textbook-perfect economic theories. 

It should now be clear that most of Obama's stimulus dollars were used to ensure the "bought and paid for" status of Democrat special interest groups.  If the Republicans don't take these facts and vigorously hammer the Obama Administration with them during the upcoming election, then they will have deserved not to win.
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Comments (15)

Funneling devalued money to... (Below threshold)
Caesar Augustus:

Funneling devalued money to Democrat districts so that union thugs can stand around watching each other not fix potholes is not exactly the recipe for sustained economic growth. Then again, sustained economic growth is anathema to Democrats, as is the private sector, so by a ghastly irony this "stimulus" abomination has been for Democrats a twisted form of "success."

A few more "successes" such... (Below threshold)
Rodney Graves Author Profile Page:

A few more "successes" such as this and we're done for.

Caesar,Yes, I thin... (Below threshold)

Caesar,

Yes, I think Joe Biden was being absolutely truthful when he described the stimulus as "an absolute success." It did exactly what they wanted -- it guaranteed the jobs of unionized workers and funneled money to loyal constituencies and big business cronies.

That's pretty much how the Democratic party's version of "investing in America" really works.

Absolutely a success for th... (Below threshold)
jim m:

Absolutely a success for the dems. Another half million AFSCME or SEIU members paying dues that the unions will turn straight back into dem campaign contributions.

What's not to like about that?

The Dems love the poor.... (Below threshold)
JLawson:

The Dems love the poor.

Why, they love them so much they do everything they can to make sure there's as many of them as possible!

"Why, they love them so muc... (Below threshold)
DaveD:

"Why, they love them so much they do everything they can to make sure there's as many of them as possible!"

And it's a great plan because the poor don't realize it.

I bet the jac boot sector i... (Below threshold)
Sep14:

I bet the jac boot sector is seeing an upsurge the last 2 years.

The real truth is neither p... (Below threshold)
Paul Hooson:

The real truth is neither party has proven any real skills of late at managing the economy since 2000. For example, the American auto industry declined to producing just 7,761,443 autos in 2010 from around 13 million when Mr. Bush entered office. And many more industry jobs disappeared on the watch of both Mr. Bush and Mr. Obama since 2000 compared to the boom economic eras during the Roosevelt, Johnson, Reagan or Clinton years.

The American economy needs real action to prevent further declines, not a silly Monty Pythonsque debate between the two parties who's policies are less toxic for the American economy than the other party.

From Jan 2008 to Jan... (Below threshold)
Indie:


From Jan 2008 to Jan 2009 the job change for private sector jobs went from 50000 lost to 850000 lost in 12 short months. Just goes to show how far Obama has to go to recoup the losses racked up under Bush.

March 2011 marks the 13 th consecutive month of private sector job growth after Obama was handed it at the bottom.


If not for Obama and his record most of these conservatives would be standing in a soup line.

Gov jobs: saved or delayed ... (Below threshold)
Garry:

Gov jobs: saved or delayed for a year?

I assume delayed.

Impie-"If not for ... (Below threshold)
Sep14:

Impie-

"If not for Obama and his record most of these conservatives would be standing in a soup line."


Really?

Soup lines are Barry's specialty.... He has Single-handedly made sure they get heavy traffic.

Barry has turned 5% unemployment into 15% real unemployment.

You may now stick your head back up your ass!

Typical con dodge.... (Below threshold)
Indie:

Typical con dodge.

Try addressing the fact that jobs in the private sector when handed over to Obama was 800000 in the negative column.

You can thank your rich friends in Wall St. that pay nothing on their capital gains derived from fraud for helping along that unemployment rate. Heck, globalization is their friend. Cheap labor whether it be immigrants in this country or Chinese laborers are the best darn workers according to big business. And you support big business at all costs right?

indecent-"You can ... (Below threshold)
Sep14:

indecent-

"You can thank your rich friends in Wall St. that pay nothing on their capital gains derived from fraud for helping along that unemployment rate."


I don't have any friends, much less on Wall street. I just know a bad deal when I see one and Barry is one bummer of a deal.

Leftists love to point out ... (Below threshold)
PBunyan:

Leftists love to point out how bad 2008 was and blame it all on President Bush while ignoring the fact that much of the pain and economic destruction was a direct result of Pelosi, Reid, Obama and the rest of the Marxists taking over Congress in 2007. When President Bush took office the economy was in recession (not that the press ever reported on it since they wanted Algore to win). While President Bush and the Republicans continued to spend too much, the economy did turn around and was recovering quite nicely until Obama and his fellow travelers came to power in Congress.

Sure, you could blame President Bush for not fighting Congress more, but I think he had to comprimise as to him (and to all Americans--whether they realize it or not), continued success in the multi-fronted war on terror was more important so he let the left pass a lot of their un-American, economically destructive policies in exchange for the Democrats violating their central 2006 campaign promise and giving President Bush the tools he needed to continue winning the GWOT for which Obama now falsely takes credit.

That is the simple fact of the matter. The Dems were willing to sacrifice the safetly of the American public and give their Islamofascist allies victory, if they did not get their way-- even though their way destroyed millions of jobs and the America ecomony.

And now, two years into the un-American regime of Obama, things continue to get worse. 15% unemployment. 10% inflation. More people living in poverty in the United States than every before in history. Yes, this was truely a victory for Obama and the Democrats and everyone who wants to put an end to freedom, prosperty, and capitalism (which fosters freedom and prosperity).

If Indie, Hooson, and the rest of the Obama voters were decent, honest, and intelligent Americans they'd be ashamed to show their faces.

HAHAHAHAP Bunyan.<... (Below threshold)
Indie:

HAHAHAHA

P Bunyan.

Gotta love the rewrite of history.

42,000 people on average are killed each year in car accidents. Are you just as fearful of getting in your car and being one of them? I'm sure you don't go anywhere because of the war on the highways.

163,000 people a year die from lung cancer each year in the US alone and yet rather than having a war against the tobacco industry we are fine with fighting regulations that try to curb smokers (of which there are about 46 million) habits of blowing smoke in your "free" space.

You guys are a cut above hilarious. You are good with industry deaths but a few boogeyman in robes scare you witless spending billions a week fighting in land that doesn't belong to us.

But hey, the defense industry has you begging to spend, spend, spend while cutting the big boys taxes.

Schmucks abound.




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