The Five Biggest Failures From President Obama's Stimulus Law

Discussion in 'Economy' started by Nova78, Sep 14, 2012.

  1. Nova78
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    Nova78 Silver Member

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    Three years and $825 billion later, the results are clear. Instead of producing an economic recovery, the stimulus produced only broken promises and massive debt. The stimulus failed—and by the president's own standards at that.

    Today, 12.8 million Americans are unemployed, 8.2 million cannot find enough work, and 1.1 million have given up looking for work altogether. Unemployment still remains above 8 percent, the supposed maximum rate, and certainly above 6 percent. For 36 straight months, unemployment has been higher than what the president promised. That's more than a rounding error; that is a failure of leadership.


    Second, Obama promised the stimulus would not only have a large impact but also an immediate impact. Said the president-elect, "I'm confident ... our 21st century investments will create jobs immediately," adding, "We've got shovel-ready projects all across the country."

    Those jobs never materialized, and it was not for lack of workers—or shovels. As President Obama remarked in June 2011, "Shovel-ready was not as shovel-ready as we expected." He chuckled through the mea culpa, but it's no laughing matter. Obama failed to deliver—and at great cost to taxpayers

    [Check out political cartoons about the budget and deficit.]

    Third, President Obama said in February 2009 that the stimulus would lift "2 million Americans from poverty." But since Obama took office, 6.3 million Americans have fallen into poverty.

    2010 U.S. Census data, the most recent available, showed that 46.2 million Americans were living in poverty. Worse still, child poverty has increased, rising to 21.6 percent. Many middle class Americans, unable to find work or decent wages, have fallen below the poverty line in recent years. It's the most tragic cost of this prolonged economic nightmare.

    The U.S. is in the midst of the longest period of high unemployment since the Great Depression.

    Fourth, the "green economy," Obama vowed, would create millions of jobs. The Energy Department has handed out $35.2 billion in stimulus money to jumpstart the clean energy industry, but it's created more red ink than green jobs. Nationally, green technology accounts for just 2 percent of employment nationwide and there has been no marked boom in the industry.
    Those loans, however, have created quite the scandal. Nearly half a billion in taxpayer dollars was lost to the now-bankrupt solar energy company Solyndra. The company, which has since laid off over 1,000 workers, was Obama's self-described poster-child for "American ingenuity and dynamism" in 2010. Today, it's the poster-child for the hazards of reckless spending.

    Finally, the fifth promise: one million electric cars. Obama promised the stimulus would put one million electric vehicles on the road by 2015. Last month, the Washington Post reported that "evidence is mounting that President Obama was overly optimistic" to make that pledge.

    General Motors' Volt, expected to be a hybrid hit, fell far short of its sales goals in 2011 by 38 percent. Fisker Automotive, which received half a billion dollars of stimulus money, also fell short of its manufacturing goals. On top of that, instead of creating jobs in the United States, the company is building its cars in Finland. So the Recovery Act did at least manage to stimulate Scandinavia.

    By now, you would think the president has learned his lesson: haphazard government spending cannot fix the economy. But in his budget , Obama called for billions more in additional stimulus-style spending. At a time when Americans are demanding a more effective, more efficient government, he has chosen to increase spending and increase taxes.

    That's not the recipe for economic recovery. The stimulus proved that much. Now is not the time for more of the same..........

    Sad Obama and dems believe throwing borrowed money at a problem will make it go away.
     
  2. Rshermr
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    Rshermr VIP Member

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    And more copy and and paste from nova. Who tells us that the stimulus did not work. So, it is either nova or the CBO we should believe. But nova does not care. His job is to post dogma. Over and over, with no impartial evidence.
     
  3. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    The Stimulus is universally acknowledged by most economists as stopping a depression in 2009. It was instrumental in stopping a stock market crash and put an end to the Bush recession


    http://www.usnews.com/opinion/blogs...e/2012/06/20/why-the-economic-stimulus-worked

    Everyone knows that the stimulus law didn't work, right? Except that it did.

    Congressional Budget Office Director Doug Elmendorf told Congress recently, "Our position is that the [2009] Recovery Act was not a failed program. Our position is that it created higher output and employment than would have occurred without it."

    Of course, not all economists agree. But in a survey by the University of Chicago's Booth School of Business, 80 percent of the 40 or so economists surveyed agreed with the Congressional Budget Office, known as the CBO, that the unemployment rate was lower at the end of 2010 than it would have been without the stimulus law. The survey asked a second question about whether—accounting for future costs arising from financing the stimulus with debt—its benefits would end up exceeding its costs. Here, 46 percent thought that they would and another 27 percent were uncertain, leaving only a small percentage that did not
     
    Last edited: Sep 14, 2012
  4. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    actually, 25 million (U6) unemployed or underemployed is very good evidence.
     

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