Ohio's 8th Congressional District Blog

Why the Obama Administration’s Phony ‘Stimulus’ Statistics Matter

Posted by Press Office on November 04, 2009

Nine jobs “saved or created” for $900? That is a feat one shoe store owner in Campbellsville, KY initially reported accomplishing as part of the federal government’s “double and even triple-checked” trillion-dollar ‘stimulus’ data. Turns out he made nine pairs of boots for members of the Army Corps of Engineers.

What about those “couple of hundreds” of jobs ‘saved’ in Columbus City Schools? The district now says many of those jobs “wouldn’t have been lost in the first place, and others might not have been lost at all.” Anecdotes like these are quickly becoming legion as the American people get a closer look at how – and why – the trillion-dollar ‘stimulus’ isn’t working even as it piles up more debt on our kids and grandkids.

According to an analysis in today’s Wall Street Journal, “the number of jobs the Obama administration credits to federal stimulus money could be overstated by at least 20,000 of the 640,000 claimed.” These phony statistics have exposed President Obama’s signature domestic spending initiative on at least three fronts:

WHERE ARE THE JOBS? The trillion-dollar ‘stimulus’ has failed to create jobs immediately and keep the unemployment rate below eight percent, as the Obama Administration promised it would. Since the ‘stimulus’ was signed into law, roughly three million private sector jobs have been lost and joblessness has risen to near double digits. It’s not just the amount of jobs at issue, but the type as well. Despite President Obama’s pledge that 90% of stimulus job creation would occur in the private sector, this new data shows that the clear majority of jobs ‘created or saved’ were in the public sector.

The Detroit News says in an editorial, “The Obama administration is attempting to spin the tepid job creation sparked by the $787 billion federal stimulus program into an economic success. But the numbers don’t add up to a good return for taxpayers. … Policy should be based on real numbers, not propaganda.” That’s why Republicans have proposed better solutions to help small businesses create jobs and get the economy moving again.

LOSING PUBLIC CONFIDENCE ON EVE OF GOV’T TAKEOVER OF HEALTH CARE. The Obama Administration’s fumbling of the trillion-dollar ‘stimulus’ certainly does not bode well for Speaker Nancy Pelosi’s (D-CA) 1,990-page government takeover, which creates 111 new federal bureaucracies. Despite the trillion-dollar ‘stimulus,’ last week’s NBC News/Wall Street Journal survey found that fewer than three in 10 Americans believe the government has done the right amount to get the economy moving again. In the most recent ABC News/Washington Post survey, a majority of Americans say President Obama’s economic program isn’t making the economy better. And now disapproval of the President’s handling of health care has reached its highest levels, according to a new CNN poll. Republicans have proposed better solutions to make health care more affordable and accessible at a price our nation can afford.

TRANSPARENCY FAIL. The Obama Administration has made a mockery of government transparency after several small businesses and municipalities have attributed significant discrepancies in their reporting to a lack of diligence on the part of federal bureaucrats. One Wyoming official tells the Casper Star-Tribune she received “different and frequently conflicting advice from different federal agencies about how to calculate the number of jobs the stimulus program has created in the state.” USA TODAY featured the story of a Texas housing official who was told by federal officials his initial claim of six jobs ‘created or saved’ “wasn’t right.” He instead reported the number of hours the roofers worked – 450 – as the jobs figure. That represents an increase of a factor of 75. The day the data was released, the Vice President admitted it was “not 100% accurate.”

The Appleton (WI) Post-Crescent says, “one of the problems with the federal stimulus spending is that it’s hard to figure out just what, if anything, is getting stimulated.” Republicans are at the forefront of an unprecedented effort to bring much-needed sunlight and transparency to the process by which bills become laws.

“Take these claims with a grain of salt,” the Corvallis (OR) Gazette-Times said in its Sunday editorial, “and with an eye on a relatively straightforward statistic, the unemployment rates for both Oregon and the United States.” The latest unemployment figures will be released at the end of this week.

Comments

The opinions expressed below are those of their respective authors and do not necessarily represent those of this office.

Larry Quinn commented on 11/5/2009

Representative Boehner, You are a disgrace to the Congress, your State, and our country. Your actions in fanning the passions of uninformed, misguided protesters outside the White House today were a complete disgrace. Your website touts the House health care bill as a "government takeover of our health care system", which you and your fear-mongering pals know damn well it isn't. You're nothing more than a fear-mongering obstructionist, playing to the paranoid fears of the uninformed conservative voters in your district. You're supposed to be above such behavior, as an elected Representative. It isn't supposed to be all about your own re-election. You should be serving the greater interests of the country, including the 40 million people with no health insurance, and millions of others who live in fear of losing their health insurance upon losing heir jobs (even if there are no such people in your district). And regarding the nonsense about the stimulus bill above - did you air the same criticisms of the bailout and stimulus bills that were enacted when President Bush was still in office??? Didn't think so.
Diane Payler commented on 11/5/2009

please vote against the Health Bill that is supporting abortion. We the people ahouls not have to pay for an electine procedure for anyone. insurance Comp. will not cover any elective procedure, and haveing an Abortion is elective. Please support the Stupak Amendant that addresses esential pro-life concerns on abortion funding and conscience rights in the health bill reform. . thank you
Chris Marx commented on 11/5/2009

Only about 100 billion actually went to shovel ready projects. The rest was simply earmarks and special interests. It doesn't matter though. Money was borrowed to invest in various projects. These funds will be repaid through taxes. There's no real way to tell if we will have a ROI. Typically any deficit spending by a government results in a negative return. If a government had a surplus of tax dollars and simply gave it back during a crisis all would be well. Borrowed money and the way it was channeled will result in temporary relief or a cushioned economic crash. The goal has been to keep the asset bubble inflated. It is common practice for governments to inflate the currency to pay past debts. I know most are thinking that we are having deflation right now. That is true but only in some commodities. The end result of the stimulus actions will be high inflation or devaluation of the dollar.
Michael Severt commented on 11/10/2009

Let them boast about the passage of this health care bill. When voting time comes they will remember who they were supposed to represent. They shall be replaced!!! Because we are fed up with this kind of treatment from Congress!
patrick berger commented on 11/10/2009

We own a small printing business and have 8 employes. We have won numerous awards for being green and sustainable and can pass CPSC safety council for children's printed products. Just about every printed item imported from ASIA would fail the test or be unable to provide PROPER paper work for verification. For every imported manufactured item we don't print the packaging, tags, warranty card, instruction sheets, operator manuals, advertising literature, shipping labels, store self talkers and the US looses out on making the paper and corrugated need to print and package the item. The negative multiplying effect of every import is devastating to the printing ,packaging and paper industries. The US has the greenest paper, packaging materials manufacturers and printers in the world. So being sustainable and green is meaningless economically even though it can be a less costly way to manufacture. The stimulus package has done us ABSOLUTELY NOTHING. All I see is road signs saying how the road is being work on using stimulus funding. These types of jobs are short term and contribute nothing to long term economic revival. You can repair and build infrastructure indefinitely but you need manufacturing industry present to use it.
Dee Cohen commented on 11/12/2009

While campaigning Mr. Obama stated he would reverse NAFTA, stop outsourcing, and create millions of jobs. None of that has happened. In fact, as a Nation we are so worse off that it is now incomprehensible how we will get out of this quagmire created by the Democrats. I commend Representative Boehner for having the courage to speak "truth" to the public when all else around us turns out to be lies. I was riveted by Mr. Boehner's presentation to the Congress (I viewed it on CSPAN). I would like a hard copy of that speech so I can read and reread it. Mr. Boehner, unlike the Democrats in Congress, did his homework. So damning is this so-called health bill (I call it the ObamaScareCare bill) that if the public REALLY knew what was in it, and what will happen to them if this monstrosity ever passes, they would flood the White House on foot. The more I view the Democratic actions with regard to this bill, the more respect they lose in my estimation. I am disgusted with their underhandedness and their cheap talk. The only people applauding the Democrats for the mess they've made, are themselves. It is pathetic. It is painful that Mr. Obama fails to understand that the majority of Americans are suffering, we've lost our homes, we do not qualify for mortgages under HIS restructuring plans, we cannot refinance under his administration's restructuring plans and rules and guidelines, we have record job losses and none of those jobs are returning anytime soon. I simply do not believe this president is in touch with reality. He has a huge salary, everything he does is paid for by our tax dollars, he has jets and armored vehicles at the ready, he has 5-star chefs, personal trainers, personal assistants, private schools, nannys, tutors, for his children, fresh food on the table, laundry done for him, gardeners and gardens, a gym, bowling alley, and libraries all in his House. The rest of us be damned. This "let them eat cake" attitude that is flaunted to us less fortunate is unacceptable. The public watches as the Obamas travel the world, go on date nights, take $50,000 + a week vacations, golfing holidays, parties at the White House, hoola-hoop contests and their dog's birthdays -- hell-o out there! Anybody listening that we -- The People -- can't afford to feed families and put roofs over our heads. That the costs of turning on a lightbulb has quadrupled in most states, that we cannot (unlike the White House) afford bottled and filtered water with tasters to taste our 5-star prepared food! We have lost our businesses and the states have lost businesses. Many of us will not be able to start over again. I blame the Obama administration for all of this, NOT BUSH. There comes a point where Mr. Obama has to accept responsibility for his poor choices and step up to the plate. The only person who benefited from the so-called stimulus package was the Obamas. What part of "suffering" does this president and the rest of his family not understand?