And So I Go: Yesterday, Today and Tomorrow

Posts Tagged ‘Stimulus Bill

Morning Bell: A Recovery Only Washington Could Love | The Foundry: Conservative Policy News.

Don’t be fooled by all the talk coming from Washington and  Progressive broadcasters  that the economy is on the move up.  It ain’t!  Unemployment is  9.9%.  And yet the government keeps spending and spending more and more, and on really stupid things.  2.6 million jobs have been lost in the past 15 months,  homes are in foreclosure or worth far less than the owners paid for them and the House of Representatives passed a bill that would help homeowners with funds to  make their homes more energy efficient.  Where are the people in Washington anyhow?  Can they not figure out that spending is the way down?  Can they not look at Europe and especially Greece and see that big spending government and adding 166,000 people to the federal payroll  is not the actions needed?

This is a good article that you should read.  Especially see the highlighted paragraph.  BB

Morning Bell: A Recovery Only Washington Could Love

Posted May 7th, 2010 at 9:27am in Enterprise and Free Markets with 3 commentsPrint This Post Print This Post

Today the Labor Department’s Bureau of Labor and Statistics released its monthly jobs report showing that the nation’s unemployment rose to 9.9% in April despite the addition of 290,000 jobs, 66,000 of which were temporary Census 2010 jobs. The rise in unemployment was driven by the entrance of 195,000 previously discouraged Americans reentering the workforce. In total, the U.S. economy has now lost a net of 2.6 million jobs since President Barack Obama signed his $862 billion stimulus plan. We are 7.6 million jobs short of the 137.8 million he promised the American economy would support by 2010.

It is encouraging to see the American economy beginning to recover, but these numbers again indicate that the Obama administration’s heavy government hand has retarded and deformed what otherwise would have been a more robust recovery. The White House may tout Congressional Budget Office (CBO) reports showing their $862 billion stimulus created jobs, but the CBO has also admitted their computer simulation didn’t take any actual new real world data into account. To the contrary, an independent study of real world stimulus facts found: 1) no statistical correlation between unemployment and how the $862 billion was spent; 2) that Democratic districts received one-and-a-half times as many awards as Republican ones; and 3) an average cost of $286,000 was awarded per job created. $286,000 per job created.

And what kind of jobs were created? According to Gallup the federal government is hiring at a significantly faster pace than the private sector. And data from BLS confirms that governments are increasing public sector pay at far faster rates than the private sector. None of this should be a surprise. President Obama specifically designed his stimulus to preserve government union jobs.

Not that President Obama’s agenda has failed to produce any private sector jobs. The Washington economy is booming as private firms have been forced to hire legions of lawyers and lobbyists to both protect their firms from Obama’s new agenda and find ways they can turn it into profit. This is why energy companies are spending millions on lobbyists to shape legislation instead of on scientists to find energy. It is why software companies are spending millions on lawyers to get federal government business instead of on engineers to develop new technologies. Back in 1994, columnist Jonathan Rauch explains what happens when Washington becomes a center of profit for the private sector:

Economic thinkers have recognized for generations that every person has two ways to become wealthier. One is to produce more, the other is to capture more of what others produce. … Washington looks increasingly like a public-works jobs program for lawyers and lobbyists, a profit center for professionals who are in business for themselves.

What happens when big government, and the big businesses best capitalized to influence it, are the main drivers of economic recovery? The recovery is slower and smaller than it otherwise would have been. A recent study by the Kaufman Foundation found that small businesses have led America out of its last seven recessions, generating about two of every three new jobs during a recovery. But under this Obama recovery, not only are government jobs growing faster than private sector jobs, but jobs are rebounding faster at large employers than small businesses.

And the Obama agenda is only set to make the environment for small businesses worse. The Obama budget plans to raise taxes on the small businesses that earn 72% of all small business income. Taxes on capital gains are set to increase to 20% while taxes on dividends are set to rise to 39.6%. Obamacare not only inflicts $503 billion in new taxes by 2019, $87 billion of which come from employer mandate penalties, but also burdens small businesses with new 1099 IRS paperwork every time they do more than $600 in business with another entity. Oh, and Obama is proposing more IRS funding and a change in law that will make it harder for small businesses to hire independent contractors.

There are far more types of small businesses engaged in more kinds of economic activity than Congress can devise special policy to help. This sort of one-off, micro-managing, tinkering policy may gain a headline and support, but it will not help small businesses broadly. The more Washington taxes and regulates, the harder it is for small businesses to innovate, force big businesses to be more productive and create new jobs. The more the Obama agenda is implemented, the slower our recovery will be.

Jobs reports ‘riddled with inaccuracies’ –

The results of the Stimulus Bill funds is a mess!   The reports of jobs created are so riddled with false statements and twisting the truth that even the Democrats should be appalled.  It is long past time for Congress to rescind this bill and make sure no more money is thrown away.

Remember:  the treasury doesn’t have this money to lend, it borrows all these funds so it is money that must be paid back with interest.  And the Stimulus Bill of $787 billion is on top of the TARP (Bail Out bill) of $700+ billion.

The reports on jobs created or saved by the $787 billion stimulus package are “riddled with inaccuracies and contradictions,” the federal watchdog overseeing the spending acknowledged Thursday.Earl Devaney, chairman of the Recovery Accountability and Transparency Board, told a House oversight committee that the board is taking steps to correct the errors and prevent mistakes in future reports, which are filed by the recipients of stimulus money and posted on the board’s website.

Reports of jobs “created” were for jobs where raises were given not the creation of new jobs.  Reports of jobs created in over 3000 counties and congressional districs that don’t even exist!   Reports of jobs created where no Stimulus money was involved at all. It just goes on and on. And then there is this:

State and federal officials say they are fielding thousands of reports of scam artists, many operating from overseas, using the promise of money from the Obama administration’s $787 billion economic stimulus plan to entice people to hand over bank account numbers. The scams are so numerous, and the criminals hard to identify, that authorities say it’s all but impossible to catch them.
TARP still has $350 billion that has not been used and many banks have returned the money they received with interest and fees.  Only the buy out of AIG and GM is still draining  funds from the tax payers.  TARP  is scheduled to stop December 31 but Treasury Secretary Geithner wants to keep his little slush fund that only he controls.  Make sure Congress hears from you that you want the TARP Bill not to be  extended.
Since it has been proven the Stimulus Bill had no real effect on our economy at all  ask your congressmen to rescind the Stimulus Bill and save what money is left.
Oh, and least we forget:  the first Stimulus Bill is riddled with fraud and lies and as far as anyone can tell hasn’t accomplished anything so the Obama Administration is now pushing for a second Stimulus Bill!~  BB

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