After nearly all the $825 Billion in Obama’s stimulus money has been spent, the CBO quietly admits it cost taxpayers more than advertised, did little to boost economic growth, and will hurt the economy in the long run.
The newly revised report states that the stimulus may have actually added as little as 0.7% to GDP growth in 2010 (when spending was at its peak) and actually created as few as 700,000 new jobs.
In addition, the CBO says the extra infrastructure money didn’t boost economic growth as much as previous claims, because states simply reduced spending from their own budgets on highways.
The truth is that the stimulus had virtually no meaningful effect on growth and employment despite its incredibly massive price tag.
The real kicker is that the CBO has also increased that price tag from the initial $787 billion to $825 billion … a 5% hike.
Hmmm! Why am I not surprised? No wonder Obama’s campaign team is planning on running a $1 Billion scorched-earthnegative campaign in 2012! All he can do is attempt to destroy his opponent with half-truths, lies, and innuendo … because his record is one of complete and unequivocal disaster!
Harold Black had an interesting commentary in the Knoxville Viewpoint of September 4th edition of the Knoxville News Sentinel. Basically, Harold Black, a professor emeritus of finance at the University of Tennessee, argues that Obama, because of his big government ideology, will simply advocate for a bigger stimulus package than the earlier $700 billion … because it was simple too small. But Obama, realizing that the word “stimulus” will not gain much in the way of support from the public, the House, or the Senate because of the dismal failure of the last stimulus (code-named “pork barrel”) package, will attempt to disguise it with code-words like jobs package, infrastructure renewal, etc.
I think Harold black is pretty accurate in his assessment! In fact, I argued the same point in a post on this blog just a few days ago. The problem is that government “infrastructure projects” do not create sustainable jobs. They create jobs that are funded by the government until they are completed or the well runs dry. Then those jobs disappear and the workers are right back where they started from … out of work; and, by the way, our “well” is already running dry!
Real and sustainable job growth has to come from the private sector … and Obama is busy killing the private sector! Things that would promote job growth in the private sector would be reducing personal and corporate tax rates, repealing Obama care, and getting rid of the endless regulatory burdens Obama’s administration shovels out by executive order. Obama, after promising to cut regulations, is actually proposing 7 new $1 billion restrictions that could, in the end, cut $90 billion from the U.S. economy!! By the way, for you conspiracy theorists out there … this is straight out of Saul Alinski’s rules for radicals! Continue to publicly say you are doing one thing (cutting regulations), while doing the exact opposite (creating billions in new business restrictions).
Harold Black points to an interesting parallel between our current situation and what happened to Japan in the 1990s. Japan initiated a series of expensive infrastructure projects to put Japanese workers back to work and boost their economy. The result was that the Japanese economy declined as the spending increased. According to Black, some observers credit the decline in the Japanese economy directly to their “squandering billions of yen on wasteful projects.” The Japanese government also seem to forget that billions of yen would later have to be spent on maintaining these newly completed “projects.”
The fact is that when Obama took office, he had super majorities in both house of Congress. He and his cronies embarked on a spending frenzy that made George W. Bush’s overspending (that progressive-liberals so often like to point to) look miniscule by comparison. As Harold Black points out, if out-of-control government spending did actually foster economic growth and job creation … both Japan and the U.S. would be booming today!
Like Wayne Allyn Root writes in his recent NewsMax article, there are actually two words Obama could use in his “jobs” speech this evening that would save this economy and perhaps this country. These are two words that I would love to hear from him …. “I resign.”