Open Thread: Why Did Obama's Stimulus Fail?
Despite a massively expensive 2009 stimulus program, high unemployment and a sluggish economy have been trademarks of the Obama administration. The goal of the stimulus was to create shovel-ready jobs, with, according to top Obama economic advisor Larry Summers, a "targeted," "temporary," and "timely" scope. As many predicted, the stimulus failed to produce the Keynesian results it promised.
Check out a new Reason.tv video of why stimulus dollars cannot fix the economy after the break, and let us know your thoughts in the comments.
One example of failed stimulus dollars is in Silver Spring, Maryland, a Washington, D.C. suburb. In Silver Spring, $138 million in stimulus money went to 46 organizations, with three companies taking the majority of the money ($71 million), all of which were already major government contractors before the stimulus was signed into law. They also received $702 million in other, non-stimulus related contracts. Giving more contracts to big government contractors that already have work, while not giving idle resources work, does nothing to stimulate economy.
Second, "Obama said the stimulus bill would put nearly 400,000 people back to work rebuilding America. But over the next two-and-a-half years, the U.S. construction industry shed about 900,000 jobs or 14 percent of the building workforce." In Maryland alone, this amounted to 8,000 construction jobs lost, and stimulus money has only paid steady salaries to 600 construction workers since mid-2009. The $771 million stimulus package given to Maryland was instead used by Gov. Martin O'Malley to cover general expenses instead of to increase spending in shovel-ready projects.
Third, the stimulus was designed to encourage a green economy, promising to place 80,000 people in green jobs. As of now, halfway through the program, only 8,000 placements have been made. According to Reason, "In downtown Silver Spring, a union-backed organization called the International Transportation Learning Center got $5 million in stimulus dollars partly to recruit thousands of new workers and train them in new "green job" skills. But because transit workers already face low unemployment and low turnover and the new jobs weren't materializing, the group is instead using the entire grant to teach new skills to workers who already have jobs." Of course, the point of the stimulus was not to increase benefits to people who already had jobs, but rather to train or employ the unemployed.
Finally, "According to the Keynesian theory that undergirds it, stimulus spending must be spent quickly to be effective. By Barack Obama's own testimony, one of the most "shovel-ready" stimulus programs was supposed to be a $5 billion program to weatherize 590,000 homes around the country." However, "In the first year, Maryland weatherized only 279 homes, or 4 percent of its goal." This was in part due to the stipulation that workers had to be hired at the prevailing wage of other similar workers in the area, meaning Maryland had to spend months calculating average wages and benefits before they could hire anyone.
As Veronique de Rugy, Reason columnist and senior research fellow at the Mercatus Center, explained, "The main lesson of the stimulus is that creating jobs is a very complex process...and certainly it can't be directed by a top down institution that pretty much fails at everything it does."
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Comments
Why?
Submitted by Blonde on Fri, 12/09/2011 - 11:33am.
Because it wasn't intended to stimulate job creation. It was, pure and simple, a slush fund to keep politicians in line with the Democrat policy of spend and tax (order is on purpose, there), furthermore it was a payoff to the unions.
As we all know, (ha ha ha) "those shovel ready jobs were not as shovel ready as we thought)".
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Very Successful
Submitted by Caringwhiteguy on Fri, 12/09/2011 - 11:43am.
You are so correct. Not only were all BHO's little pals placated or rewarded, but millions of other poor innocent schlubs became more dependent on on the largess of one government entity or another.
And he did it all with our money!
Direct hit out of the shoot!
Submitted by Newsbubba on Fri, 12/09/2011 - 11:44am.
This whole scam, and that's what it was, was a slush fund to pay off the "homies" what got him elected. The unions got a ton of it. All of Emmet's projects got bought out. GM was bought and then given to the union thugs. Chrysler defaults on everyone but the unions.
You call this a "Keynesian theory that undergirds it" stimulus?
It's more like a Kenyonsian Theory of economics. Steal the money from the tribesmen and use it to buy goats for your own "family."
We have been, and are being had on a massive scale, and still half the morons in this country will vote for the RBFSOB!
Where the dems are concerned
Submitted by jon_torlin on Fri, 12/09/2011 - 12:00pm.
Where the dems are concerned, anything that they think is a good thing is automatically a bad thing. That's a given fact. Anyone with some kind of common sense would know this. Any dem that says this is a good thing is lying their sorry butt off.
-Jon
I can't believe I said "shoot."
Submitted by Newsbubba on Fri, 12/09/2011 - 9:23pm.
I meant "chute." Had to go to happy hour to clear my mind, I guess.
Second that
Submitted by bkeyser on Fri, 12/09/2011 - 11:48am.
The majority of the money went to states to pay public employee pension and health care costs. Some was laundered through pet projects like Solyndra and Lightspeed, and some went to fund projects based entirely on some naive belief in "shovel-ready projects". (There's a small bridge repair that just began not to far from my home that has an ARRA sign; nearly three full years after the Act was signed.)
Slush fund extraordinaire.
Spot on, blonde
Submitted by Galvanic on Fri, 12/09/2011 - 11:54am.
It was chock full of pork for Democratic districts and states.
The careless drafting and hasty passing of the stimulus was intended to reward Dem allies before all the details were known. Pelosi and the WH didn't mind, because they believed that any new dollars pumped into the economy would stimulate it regardless of who received.
That's why so much went to paying cops, fire fighters, teachers (all union jobs) instead of construction businesses. Pelosi -- the sharpest crayon in the knife drawer -- has even gone so far as to claim that a dollar injected into the economy creates TWO DOLLARS.
When it flopped, the Dems said that the situation was worse than they had thought -- an obvious ploy to alibli a failure from which they hoped to ask for even more money. Fortunately, the people fought back.
"And that ball is outta
Submitted by Scuba Dude on Fri, 12/09/2011 - 11:53am.
"And that ball is outta here!!!!!!"
Quite correct Blonde. President Downgrade had to start paying off all his buddy's that put him at the throttle of the gravy train.
We would have gotten more out of the "stimulus" if we had just burned the money. At least it could have provided heating for folks.
This country needs a major shakeup to reverse the course he and his fellow libturds have put this country on. We need to flush out DC and start making the country competitive again in manufacturing and business.
Absolutely correct, Blonde! [ Place “Like button” here ]
Submitted by Grumpy in Arizona on Fri, 12/09/2011 - 12:15pm.
Your answer is a lot better than mine! (I could only come-up with a snide answer along the lines of: “Why? –For the same reason the ‘Edsel’ is not the car of choice in America”).
Thanks for getting to the heart of the matter so early in this Thread.
- Grump :o)
Soetoro insults Jewish holiday(like everything else)
Submitted by jon_torlin on Fri, 12/09/2011 - 11:45am.
Never one for missing a chance to insult people, it seems.
Never need an excuse for party
I hope those of you who are on this blog and are Jewish will see this for the fraud that he is, especially if you voted for him the first time around.
I'm not Jewish and I know how the candles are supposed to be lit on the menorah. This isn't out of ignorance on his part.
-Jon
He even
Submitted by bkeyser on Fri, 12/09/2011 - 11:51am.
lit all the candles on the Menorah. For a guy accused of being both tone deaf and unfriendly to Israel, he should have just held the "party" on a rail car and eliminated all doubt.
It doesn't matter how many
Submitted by stratman on Fri, 12/09/2011 - 7:31pm.
It doesn't matter how many candles were lit. No candles should have been lit at all. Sure, all candles lit makes for a more dramatic photo, but Obama proves once again that he disrespects Jews by not waiting until it is the holiday, instead of torquing the holiday to his needs.
Pure photo-op propaganda to quell growing Jewish resentment for politically attacking Israel through three proxies (Panetta, the self-hating Jewish US Ambassador to Belgium, and Hillary Clinton) at a conference this past week.
If govt spending could create
Submitted by robert108 on Fri, 12/09/2011 - 11:56am.
If govt spending could create prosperity and economic growth, there would be no need for a private economy. The truth is that govt spending injures the ability of the real economy(the private sector) to generate wealth, and so makes us all poorer.
What we have here...
Submitted by FearMonger on Fri, 12/09/2011 - 12:07pm.
is an administration that essentially gifted assault weapons to some of the most violent and dangerous criminals on the planet. As to why they fail... can any other conclusion be reached except that they are WRONG-HEADED?
Good grief... they are so ridiculous (and I mean that -- deserved of ridicule) that there's no need to disparage/ insult/ slander them. All you have to do is hit the REWIND button and let their own words do the mocking. Sad, pathetic and bass-ackwards.
Now it's TAX THE RICH TAX THE RICH TAX THE JOB CREATORS to pay for already failed programs. Congrats to the tax-and-spend liberals... you've now graduated to spend-THEN-tax leftwingers.
I would say "What a joke" but... this is most decidedly NOT funny.
Because he hates America
Submitted by Zilla of the Re... on Fri, 12/09/2011 - 12:23pm.
Obama hates America, he is doing everything he can to destroy her, and not just economically. His "islam first" policies are a disaster for us domestically and on the world stage. Every single day that he is in power, enabling the genocidal islamic supremacist Muslim Brotherhood and their various front groups (he even has Muslim Brotherhood in high ranking cabinet positions) puts us in greater danger than the day before. We need a president who isn't afraid to honestly address the threat to our very existence presented by islamic supremacists, jihad and sharia, which brings me to this:
Anti-Jihad Blogger Announces Official Endorsement for President of the United States of America
I find it interesting that
Submitted by ThisnThat on Fri, 12/09/2011 - 1:16pm.
I find it interesting that there have been 33 plots against the U.S. military since Sept. 11, 2001, and 70 percent of those threats have been since o'bama has been president? Seems like the only way to get these numbers down is to de-classify them as "workplace violence" instead of terrorism.
__________
“Didn't win the Medal of Honor? Didn't even serve? Then lie about it. We'll support you." — 9th Circuit Court
Social Security Administration
Submitted by ThisnThat on Fri, 12/09/2011 - 12:55pm.
has suspended our right to request any more SSN statements -- due to the current budget situation. Mind you now -- they urge everyone to check their statements carefully to ensure accuracy. Except you can't request a statement, nor will they send any more statements out automatically as they have in prior years.
However -- a new announcement on 15 Nov 2011: Social Security Launches New Spanish Online Services! I guess now I know what caused the "current budget situation", don't I. Here's the SSN Commissioner's statement: “I’m proud that Social Security is a leader in the Federal government in providing service in Spanish, and I thank Don Francisco for volunteering his time to help spread the word about these new online services.”
It's stuff like this that makes me madder than hell at o'bama's bureaucracy.
__________
“Didn't win the Medal of Honor? Didn't even serve? Then lie about it. We'll support you." — 9th Circuit Court
...it was all pork
Submitted by vrwc13 on Fri, 12/09/2011 - 3:29pm.
...it was all pork (going to his donors pockets and his voter base).
v
The burden of life is from ourselves, its lightness from the grace of Christ and the love of God. - William Bernard Ullanthorne
The Keynesian Theory
Submitted by Conservator on Fri, 12/09/2011 - 1:04pm.
I find it interesting that many don't seem to realize that the '2009 stimulus program' and the Bush tax cuts of 2003 are both examples of Keynesian Economics. The difference is that the left believes it is better to tax Americans and let the government decide where and how the money is spent - Crony & Elitist Capitalism which explains why Obama's stimulus failed.
The right believes when you give Americans a cut taxes, like the Bush tax-cuts, Americans will spend these monies far wiser compared to the government and will stimulate the overall economy far more efficiently. This is a historic fact based on tax cuts implemented by Presidents Kennedy, Reagan, Clinton and GWB.
The problem is the federal bureaucracy continues to spend far more revenue than it receives and now our federal debt is over $15 trillion.
The Dear Ruler's stimulus was a raging success
Submitted by Dave. on Fri, 12/09/2011 - 1:18pm.
...if you understand what its intended purposes actually were.
Obama took advantage of the now epidemic economic illiteracy of the dumbMass American sheeple, up and stole nearly $800 billion of their money for what was essentially his own use, and he did it in broad daylight, right in front of God and everybody.
The truly sickening part was how many idiot republicans willingly helped him pry open the door to the treasury vault.
What I find amazing is there are still people walking around believing that Obama actually intended to create jobs.
Problem is, government cannot actually create jobs.
Even Obama knows that.
-Dave
Vote for the American in November
Another Obama gaffe?
Submitted by bkeyser on Fri, 12/09/2011 - 2:54pm.
As Obama called for passage of those bills, he also responded to a recent Republican push to require him to approve the construction of the Keystone XL pipeline from Canada. "However many jobs might be generated by a Keystone pipeline," he said, "they're going to be a lot fewer than the jobs that are created by extending the payroll tax cut and extending unemployment insurance."
Nah, just a downplay
Submitted by jon_torlin on Fri, 12/09/2011 - 3:14pm.
I think he was trying to downplay the whole thing, making it seem insignificant. Kinda the same way as not pushing for the drilling of oil because it won't have an immediate impact and says it'll take too long to show any effect. Otherwise known as nonsensical thinking to mess people up with.
-Jon
geez bk...
Submitted by FearMonger on Fri, 12/09/2011 - 3:30pm.
It's an elementary equation...
Paying People To NOT Work = Mucho Jobs Created
Get it?
minor but important point
Submitted by Agnostic on Fri, 12/09/2011 - 3:16pm.
Any extra money that went to the consumers was used to pay debt already acquired or to buy primary budget items. This does not stimulate the economy or hiring.
For all the faults of the various programs that has been put out by this administration the fact is they have put a lot of tax payer cash into a lot of peoples homes. The fault in their logic that this is create economic growth is that consumers may drive growth but they don't create it. As long as consumers are primarily buying basics and paying down old debts there will be no incentives for the producers to hire or put a lot into innovation.
I don't know what you guys are talking about......
Submitted by NC Cop on Fri, 12/09/2011 - 3:26pm.
according to a very liberal co-worker of mine that stimulus was a smashing success. It kept the economy from FURTHER spiraling downward, according to him.
When I point out that the term STIMULUS means it is to STIMULATE not keep something from bottoming out, he just responds that the stimulus worked. Regardless of the economy, housing market, unemployment, the stimulus was a wonderful success.
How anyone can honestly believe this is beyond me. It's mind boggling.
he just responds that the stimulus worked
Submitted by FearMonger on Fri, 12/09/2011 - 3:37pm.
Yep. Cuz that's what Chris and Ed and Larry and Rachel told him to say.
"Mind boggling" indeed. And sad... oh so sad.
trick question.... right?
Submitted by wizardjr on Fri, 12/09/2011 - 3:45pm.
.
It didn't fail!!!
Submitted by niner-four-whiskey on Fri, 12/09/2011 - 3:46pm.
The stimulus was just a party slush fund. The money went to donors, friends, and fellow travelers. It was never intended to stimulate the economy. The administration saw a crisis and took advantage of it. The money is in the hands of unions, activists, government employees, NGO's and campaign donors, all working tirelessly to organize and institute the glorious Marxist revolution that Obama and his benefactors so desire for America.
So no, he didn't fail. He just lied about the true purpose.
...porkfect 10!!!
Submitted by vrwc13 on Fri, 12/09/2011 - 4:33pm.
I wish I had said it like that, well done.
btw all: is it too late for - Joe Wilson 2012?
v
The burden of life is from ourselves, its lightness from the grace of Christ and the love of God. - William Bernard Ullanthorne
Here's something to brighten everyone's day
Submitted by Blonde on Fri, 12/09/2011 - 4:47pm.
Allen West apologizes to America for Congress' failure on debt. If you listen carefully, you can hear him take Eric Cantor to task for a lazy legislative agenda, as well as an oblique criticism of John Boehner. He takes Obama and Harry Reid head on.
Part 1
Part 2
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Howdy B....changing the
Submitted by motherbelt on Fri, 12/09/2011 - 5:03pm.
Howdy B....changing the subject (I will look at that, tho) did you get this latest Obama gaffe
Who cares if Hanukkah's not for two weeks; they'll be in Hawaii then! No problem; celebrate it now! Not only does he belittle the Jewish holiday with "We never need an excuse for a good party" but he condenses the whole eight day celebration into one by lighting ALL the candles!! (one candle should be added to the Menorah each day)
This is like lighting all the candles on the Advent Wreath at once to be done with it!
I'm sorry, but I simply don't see why American Jews have anything but contempt for this man.
codespeak MB
Submitted by vrwc13 on Fri, 12/09/2011 - 5:06pm.
It's codespeak trying to appease the judeo-christian folks while giving a 'wink' to his muslim brothers.
v
The burden of life is from ourselves, its lightness from the grace of Christ and the love of God. - William Bernard Ullanthorne
Yes I did, MB...Need Help NB'ers!
Submitted by Blonde on Fri, 12/09/2011 - 5:17pm.
Does anyone here know where the picture of him with the totally lit Menorah came from? I'd like an article w/that picture to use for my link on the gaffe list.
Rush had a pretty good thought today....did Obama mistake the Menorah for the Kwaanza candelabra, which apparently is lit up all at once (seven branches)? It's entirely possible....
I agree, Obama's little party remark, as well as the rest of his "explanation" and behavior is beneath contempt.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Found it....we now have 105 Gaffes
Submitted by Blonde on Fri, 12/09/2011 - 5:23pm.
Que'lle fool.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Democrats like to think of themselves as the party of smart...
Submitted by vrwc13 on Fri, 12/09/2011 - 5:35pm.
Democrats like to think of themselves as the party of smart people.
Even by the standards of campaign rhetoric, this is a shockingly shoddy piece of work (speech at Osawatomie, Texas oops, Kansas)
What we have here, it seems a president who has no serious interest in public policy. He has spent nearly half his 15 years in public office running for other public office. The only difference now is that, having run out of higher offices to run for, he is just running for reelection instead.
Those who pride themselves on belonging to the party of smart people should be embarrassed.
...when will the masses realize the "king has no clothes"?
v
The burden of life is from ourselves, its lightness from the grace of Christ and the love of God. - William Bernard Ullanthorne
Great link, vr.....
Submitted by motherbelt on Fri, 12/09/2011 - 5:49pm.
and I do believe you have zeroed in on the "money quote!"
Don't forget that Obama is the man who had to cite, as proof of executive experience, the running of his campaign!
Owl pets dog
Submitted by bkeyser on Fri, 12/09/2011 - 6:36pm.
In the event you could use a nearly 3 minute break from the Omedia™.
Hahaha
Submitted by bkeyser on Fri, 12/09/2011 - 6:42pm.
This is too funny.
Newt Channels Al Gore With Global Warming Book
Submitted by im41 on Fri, 12/09/2011 - 9:55pm.
Did you see that Newt is putting out a book on global warming?
http://thebachmanncometh.blogspot.com/2011/12/new-newt-gingrich-global-w...
Countervailing forces. NO
Submitted by amyshulk on Sat, 12/10/2011 - 1:48am.
Countervailing forces. NO party gets their idea to fruition without the other party weakening or even flipping it. NEITHER party gives a rat's patootie of real effects, they just want the imprimatur that what they did DID do good.
I get the basic idea - it's why we bailed out the banks, GM, etc. If one goes down, they'll pull all the rest down.
So save the States by allowing them to avoid the haircut in gov't. workers/programs/etc. for a few years and hope against hope the economy will bounce back.
THIS is why the TP arose. OWS too - but with diametrically opposed solutions.
Gov't. has the ability to print $$$ we're told, that's why the TP is simplistic in it's view that gov't needs to cull the herd. That leaves out the effect on *everyone* in the weakened dollar - just like "taxing the rich" really means less for *all*
This is NOT what our founders envisioned; a nanny state obviating the need of its' citizens to have the ability to think critically. Having real consequences for bad actions {being enforced - no need for MORE rules/regs} would be a good first step!
Ronald Reagan