Failure You Can Believe In: Obama Stimulus II
Because the first stimulus was such a roaring success, with less than 10% spent, 9.5% unemployment, and the economy in shambles, Democrats would like to do it all over again!
You know what this is? This is Democrats realizing that their first stab at the stimulus was an utter disaster. Actually, this was the second stimulus, the first coming under Bush, and not including the TARP rescue.
First, less than 20% of the bill was real stimulus. The jobs that were created were not exactly efficiently created; for example, the Office of Legislative Budget Assistant in New Hampshire reported $413.6 million made its way to the state from the stimulus, creating 50 jobs…or over $8 million per job. The rest was pork, pure and simple (or as Rush Limbaugh has dubbed it, ‘porkulus’). The jobs numbers are now worse than the Obama Administration’s predictions…that is, predictions assuming there NEVER was any stimulus.
Even Democratic supporters are worried. Warren Buffett, an Obama supporter, has been attacking Democrats for weeks. You know it is bad when Larry Summers, White House advisor, says that the worst is YET to come. Ouch.
“Our first stimulus bill … was sort of like taking half a tablet of Viagra and having also a bunch of candy mixed in … as if everybody was putting in enough for their own constituents,” he said. “[the first stimulus] was like half a tablet of Viagra and then having also a bunch of candy mixed in — it doesn’t have really quite the wallop.”
A glowing endorsement, then. Buffett said that a 2nd stimulus may be needed, but it shouldn’t be watered down. What a joke; has he met the Democratic leaders in Congress? Their definition of leadership is ‘watered down’. For example, in the health bill being proposed by the House, legislators have place a provision that could provide billions of dollars for walking paths, streetlights, jungle gyms, and even farmers’ markets. Yes, streetlights are nice, no question; but what exactly do they have to do with paying for my colonoscopy?
O.K., Mr. Smarty Pants…take a step back, and tell us: What has been accomplished in stimulus 1?
Well, we have spent $56 billion of the $767 billion. Only about 10% was to have been spent by now…but even that means we are spending at a slower rate than predicted. And one record: we have a $1 trillion deficit for the first time in world history.
Of the money spent, most (some estimates go as high as 90%) went to states to shore up their balance books. That was necessary, but much of that money is not stimlulative in any sense of the word. After months of bragging about 150,000 jobs “saved or created,” the GAO admits that the states have done almost nothing with their portion of the funds to do anything but keep bureaucrats employed. Bailouts of states are much like bailing out companies like AIG and GM…you may be forced to do it, but it is unlikely to create any economic growth for the foreseeable future.
Billions were to be spent on road projects. So how is that working out? According to an analysis by The New York Times of 5,274 transportation projects approved so far, the 100 largest metropolitan areas are getting less than half the money from the biggest pot of transportation stimulus money, even though more than 2/3 of people live in these areas (not to mention, over 80% of the economic growth in this country). So where is the money being spent? In rural areas. Yup, in areas no one lives, no one works, and no one is really creating jobs in. Brilliant. Your government at work.
The dollars that have been spent form the Stimulus appear to be preferntially headed to districts that voted for Barack Obama. From USA Today:
Billions of dollars in federal aid delivered directly to the local level to help revive the economy have gone overwhelmingly to places that supported President Obama in last year’s presidential election.
That aid — about $17 billion — is the first piece of the administration’s massive stimulus package that can be tracked locally. Much of it has followed a well-worn path to places that regularly collect a bigger share of federal grants and contracts, guided by formulas that have been in place for decades and leave little room for manipulation.
“There’s no politics at work when it comes to spending for the recovery,” White House spokesman Robert Gibbs says.
Counties that supported Obama last year have reaped twice as much money per person from the administration’s $787 billion economic stimulus package as those that voted for his Republican rival, Sen. John McCain, a USA TODAY analysis of government disclosure and accounting records shows. That money includes aid to repair military bases, improve public housing and help students pay for college.
Sure…no politics involved. I don’t believe in coincidences when it comes to politics. Obama Supporting Counties– $69 per person; McCain Supporting Counties– $34 per person…nope, just coincidence.
So, where do we go from here? I think we go back to classic economic stimulus, such as my initial stimulus plan, which I posted in February and can be seen here. Ultimately, government cannot provide long term economic growth by growing the federal bureaucracy. It simply doesn’t work. You must give incentives to businesses to consider rehiring people, to make capital investments in new industries, and to have a reason to grow production. Having politicians handing out pork to their preferred constituents will not create jobs…Obama’s first stimulus proved that.
We will see if Obama is really as smart as he thinks he is. In all fairness, Obama is not pushing for a second stimulus right now…he is just asking for more time. But with unemployment numbers skyrocketing, there will soon be pressure from within his own ranks to do more to save the economy. If he does more of the same, you will know inherently that he is nothing more than a classic liberal idealogue. And that will mean that the tax revolts, including the Tea Party movement, will continue to grow. However, if he is willing to consider new growth measures, such as decreasing the corporate tax rate, capital gains, etc., maybe there is hope yet.
I am not holding my breath.
UPDATE
From Gateway Pundit:
Obama says the recovery will take months.
Barack Obama on July 2, 2009:
U.S. President Barack Obama said on Thursday there were signs that the “economic storm” that has made millions jobless was waning, but warned that it would still take the United States many months to recover.Ten days later…
The recovery will take years not months.
Barack Obama on July 9, 2009:
Obama: Recovery Will Take Years Not Months.
“It was, from the start, a two-year program, and it will steadily save and create jobs as it ramps up over this summer and fall.”Does this guy really know what’s going on?
And even scarier:
$1,000,000,000,000.00 – That is our deficit for the 2009 fiscal year. Enjoy!
Nor would I hold mine. Considering Cap and Trade and his other initiatives and I see the most anti-business President since Jimmy Carter (we would be better off with Jimmy Carter… could he fill in?). I think the question we need to ask is: “Does he really just desire to destroy America?” How can he have half a brain and expect what he is doing to work? How can Jim Cramer from Mad Money support such an anti-business President (GE is in the pocket of the Administration) and still guide investors in the market? This is all truly bizarre… it far eclipses my worst expectations as to how bad he truly would be.
Moreover, these failures are truly shameful on so many levels. We would all do far better if he were to be successful.
One of the most amusing reports on the finacial (and other) news has been the fantastic gains for the markets (‘quarter’, ‘this year… since blah, blah, blah’). Considering what has been lost: who cares?!? Unless one bought the March lows and is sitting pretty now there is no gain.
Let us use the 52 week range of the DOW: 6,440.08 – 11,933.50 (from Yahoo finance) to illustrate the absurdity of this ‘fantastic quick rise’ to present level 8,183.17. If one had the high of the range as personal equity in the market they would not be happy to have declined to the 52 week low (46% loss) to have a ‘gain’ (assuming that one did not sell on the way down or at the low) of 27% from the low. In dollar terms this gain means one is ‘happy’ to have 27% more than the low but is still $3,750.33 less than the amount of their 52 week high (principal). Sure this is better than being down $5493.42 but in any rational sense one would not argue that they were better off for losing so much money. Extrapolate the percentages to any monetary value one would wish. However, consider this is but the Dow Average and is not GM which means one lost everything unless they got out on the way down.
Of further note: some of the most dramatic declines were from the end of September onward. This was when the soon to President was talking down the economy for his own political gain. Recall also he did not do his job as a Senator by voting on the measures to take care of the economy then. However, he did have time to go visit his soon to be passing Grandmother (without the accompaniment of his family).
[...] pushing to gag stimulus critics and Cap and trade regulations: Do you trust this man? Neoavatara: Failure You Can Believe In: Obama Stimulus II Fire Andrea Mitchell!: Wells Fargo sues………. ITSELF! My Vast Right Wing Conspiracy: Stimulus [...]
I am a small business of (1) since I am an S Corp, out of work. I will not be counted in the unemployed numbers, how many more of there like us out there?
[...] American Pundit: Poor Babies: Obama Staffers Exhausted by the Stress of Wasting Money Neoavatara: Failure You Can Believe In: Obama Stimulus II Fire Andrea Mitchell!: Wells Fargo sues………. ITSELF! My Vast Right Wing Conspiracy: Stimulus [...]
[...] Gateway Pundit: Unreal. With Unemployment at 9.5% Obama Says Stimulus Is Working Neoavatara: Failure You Can Believe In: Obama Stimulus II RedState: Whoops… Entitlement Programs Collapsing Faster than Expected Frugal Café Blog [...]
[...] Shut Gateway Pundit: Unreal. With Unemployment at 9.5% Obama Says Stimulus Is Working Neoavatara: Failure You Can Believe In: Obama Stimulus II Legal Insurrection: Yes They Do Why Mommy Is A Republican/Palin Supporter: Palin on Michael Dukes [...]
[...] More on our nation’s unemployment and economic woes: Gateway Pundit: Unreal. With Unemployment at 9.5% Obama Says Stimulus Is Working and Late to the Party — Rich Obama Supporters Realize He’s a Class Warrior and Joe the Plumber: Obama’s Answer Was “Right Out of Karl Marx’s Mouth” (Video) and Joe the Plumber Weighs in on Debate: “Obama’s Proposal Scares Me Because It’s Just One More Step Towards Socialism” Innocent Bystanders: The Stimulus Package that Forgot to Stimulate Anything Michelle Malkin: Two Democrats in New York abandon ship, give GOP control of state Senate and Billionaire to New York: Screw you and Your TARP dollars at work and Sen. Coburn: Our Watchdog and Spawn of the Spendulus Updated and Document drop: Porkulus One is a failure, so let’s do it again! and Bailoutmania: Not “permanent.” Just forever… and Tim Geithner is a joke in China, too and White House pushing to gag stimulus critics The American Pundit: Poor Babies: Obama Staffers Exhausted by the Stress of Wasting Money Radio Vice Online: Nice… Paychex founder goes Galt on New York – sort of Suitably Flip: New Evidence Confirms: People Rational Breitbart.com: Rising unemployment accelerates foreclosure crisis Rasmussen Reports: Number Who Says U.S. Heading in Right Direction Slips to Lowest Level Since February CNSNews.com: Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’ Temple of Mut: Detention Won’t Change a Delinquent NewsBusters: MSNBC’s Shuster Relies on Media Matters to Hunt for Truth About Conservatives Neoavatara: Failure You Can Believe In: Obama Stimulus II [...]
[...] Additional: The Other McCain, Hot Air: A Liberal Lecture on Economics (and Why It Won’t Work) GayPatriot: Does the President Ever Smile When He Speaks? and Despite 2008 Election, Americans Still Moving Right Right Pundits: Steny Hoyer: Second Stimulus Possible The American Pundit: The Hypocritical Incompetence of Congress Gateway Pundit: Unreal. With Unemployment at 9.5% Obama Says Stimulus Is Working and Late to the Party — Rich Obama Supporters Realize He’s a Class Warrior and Joe the Plumber: Obama’s Answer Was “Right Out of Karl Marx’s Mouth” (Video) and Joe the Plumber Weighs in on Debate: “Obama’s Proposal Scares Me Because It’s Just One More Step Towards Socialism” Jim Blazsik: Obama vs Obama on the Stimulus Hot Air: Biden: We must bankrupt the country to avoid bankrupting it and What top-tier economists use to analyze success Innocent Bystanders: The Stimulus Package that Forgot to Stimulate Anything Michelle Malkin: Inside the monstrous Obamacare bureaucracy and Two Democrats in New York abandon ship, give GOP control of state Senate and Billionaire to New York: Screw you and Your TARP dollars at work and Sen. Coburn: Our Watchdog and Spawn of the Spendulus Updated and Document drop: Porkulus One is a failure, so let’s do it again! and Bailoutmania: Not “permanent.” Just forever… and Tim Geithner is a joke in China, too and White House pushing to gag stimulus critics The American Pundit: Poor Babies: Obama Staffers Exhausted by the Stress of Wasting Money Frugal Café Blog Zone: Washington Just Doesn’t Get It… Throwing More Money into a Second Porkulus Bill Won’t Fix the Economy My Vast Right Wing Conspiracy: Stimulus fallout Hot Air Green Room: CNN Creates Misleading Headlines to Save Obama’s Credibility and Zero Percent Unemployment – Now! Radio Vice Online: Nice… Paychex founder goes Galt on New York – sort of Suitably Flip: New Evidence Confirms: People Rational American Elephants: They Lie, and Lie, and Lie in a Raw Grab for Power. Are You Going to Let Them Get Away With It? Vets On The Watch: Government Lies To Get Agenda Passed Breitbart.com: Rising unemployment accelerates foreclosure crisis Rasmussen Reports: Number Who Says U.S. Heading in Right Direction Slips to Lowest Level Since February The Patriot’s Mind: How Obamacare will Cripple the US Economy CNSNews.com: Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’ Temple of Mut: Detention Won’t Change a Delinquent NewsBusters: MSNBC’s Shuster Relies on Media Matters to Hunt for Truth About Conservatives Neoavatara: Failure You Can Believe In: Obama Stimulus II [...]
[...] Additional reading: The Other McCain, Hot Air: A Liberal Lecture on Economics (and Why It Won’t Work) Cam Cannon, Big Hollywood: Obama’s Jedi Mind Trick: We’ve Been Put on Notice GayPatriot: Does the President Ever Smile When He Speaks? and Despite 2008 Election, Americans Still Moving Right Byron York, Washington Examiner: The RAT hiding deep inside the stimulus bill: The far-reaching — and potentially dangerous — provision that no one knows about Hot Air Green Room: CNN Creates Misleading Headlines to Save Obama’s Credibility and Zero Percent Unemployment – Now! Right Pundits: Steny Hoyer: Second Stimulus Possible The American Pundit: The Hypocritical Incompetence of Congress Living Jersey: Biden admits stimulus is a scam Gateway Pundit: CBO DIRECTOR: US BUDGET IS ON UNSUSTAINABLE PATH and Unreal. With Unemployment at 9.5% Obama Says Stimulus Is Working and Palin Calls Obama’s Massive Spending & Economic Policies “Immoral” and Late to the Party — Rich Obama Supporters Realize He’s a Class Warrior and Joe the Plumber: Obama’s Answer Was “Right Out of Karl Marx’s Mouth” (Video) and Joe the Plumber Weighs in on Debate: “Obama’s Proposal Scares Me Because It’s Just One More Step Towards Socialism” The K Ryan James Blog: Hopenchange: A transparent lack of transparency Scared Monkeys: Joe Biden’s Idiotic Comment: “We Have to Go Spend Money to Keep From Going Bankrupt” Stop The ACLU: Obama Tanks In Ohio Gunservatively!: Son-of-a-Stimulus! Jim Blazsik: Obama vs Obama on the Stimulus Hot Air: Report: McCaskill’s staffers flip health-care protesters the bird and Biden: We must bankrupt the country to avoid bankrupting it and What top-tier economists use to analyze success Mere Rhetoric: WaPo: Obama Staffers The Bestest And Diligentest Staffers Ever. Especially That Gibbs Guy. He’s Super. Innocent Bystanders: The Stimulus Package that Forgot to Stimulate Anything Michelle Malkin: Inside the monstrous Obamacare bureaucracy and Two Democrats in New York abandon ship, give GOP control of state Senate and Billionaire to New York: Screw you and Your TARP dollars at work and Sen. Coburn: Our Watchdog and Spawn of the Spendulus Updated and Document drop: Porkulus One is a failure, so let’s do it again! and Bailoutmania: Not “permanent.” Just forever… and Tim Geithner is a joke in China, too and White House pushing to gag stimulus critics The American Pundit: Poor Babies: Obama Staffers Exhausted by the Stress of Wasting Money Frugal Café Blog Zone: Washington Just Doesn’t Get It… Throwing More Money into a Second Porkulus Bill Won’t Fix the Economy and Yet Another Trillion Dollars of Taxpayer Money… Gregg Warns That Obama’s Bailouts Will Bankrupt America and The Obamas’ Personal Debt vs. Obama’s Demand That Americans Cut Back and Liberal MSM Headlines: Obama’s Effectiveness on Economy Crumbling, More Americans Negative on His Spending… Colin Powell Wrong about Taxpayers Wanting “Big Government” My Vast Right Wing Conspiracy: Stimulus fallout Radio Vice Online: Nice… Paychex founder goes Galt on New York – sort of Suitably Flip: New Evidence Confirms: People Rational American Elephants: They Lie, and Lie, and Lie in a Raw Grab for Power. Are You Going to Let Them Get Away With It? Vets On The Watch: Government Lies To Get Agenda Passed Breitbart.com: Rising unemployment accelerates foreclosure crisis Rasmussen Reports: Number Who Says U.S. Heading in Right Direction Slips to Lowest Level Since February The Patriot’s Mind: How Obamacare will Cripple the US Economy CNSNews.com: Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’ Temple of Mut: Detention Won’t Change a Delinquent NewsBusters: MSNBC’s Shuster Relies on Media Matters to Hunt for Truth About Conservatives Neoavatara: Failure You Can Believe In: Obama Stimulus II [...]
[...] Additional reading: The Other McCain, Hot Air: A Liberal Lecture on Economics (and Why It Won’t Work) Cam Cannon, Big Hollywood: Obama’s Jedi Mind Trick: We’ve Been Put on Notice Byron York, Washington Examiner: The RAT hiding deep inside the stimulus bill: The far-reaching — and potentially dangerous — provision that no one knows about Hot Air Green Room: CNN Creates Misleading Headlines to Save Obama’s Credibility and Zero Percent Unemployment – Now! Right Pundits: Steny Hoyer: Second Stimulus Possible The American Pundit: The Hypocritical Incompetence of Congress Living Jersey: Biden admits stimulus is a scam Gateway Pundit: CBO DIRECTOR: US BUDGET IS ON UNSUSTAINABLE PATH and Unreal. With Unemployment at 9.5% Obama Says Stimulus Is Working and Palin Calls Obama’s Massive Spending & Economic Policies “Immoral” and Late to the Party — Rich Obama Supporters Realize He’s a Class Warrior and Joe the Plumber: Obama’s Answer Was “Right Out of Karl Marx’s Mouth” (Video) and Joe the Plumber Weighs in on Debate: “Obama’s Proposal Scares Me Because It’s Just One More Step Towards Socialism” WTF?! Obama: And now the President is reminding Russians about Alaska. The K Ryan James Blog: Hopenchange: A transparent lack of transparency Grand Rants: Baby Boomers: Start Shouting Now! Frugal Café Blog Zone: Spin Gone Amuck: Obama vs Obama… Stimulus/Porkulus Hole Digging (video) and Washington Just Doesn’t Get It… Throwing More Money into a Second Porkulus Bill Won’t Fix the Economy and Yet Another Trillion Dollars of Taxpayer Money… Gregg Warns That Obama’s Bailouts Will Bankrupt America and The Obamas’ Personal Debt vs. Obama’s Demand That Americans Cut Back and Liberal MSM Headlines: Obama’s Effectiveness on Economy Crumbling, More Americans Negative on His Spending… Colin Powell Wrong about Taxpayers Wanting “Big Government” Scared Monkeys: Joe Biden’s Idiotic Comment: “We Have to Go Spend Money to Keep From Going Bankrupt” Stop The ACLU: Obama Tanks In Ohio Gunservatively!: Son-of-a-Stimulus! Jim Blazsik: Obama vs Obama on the Stimulus Hot Air: Report: McCaskill’s staffers flip health-care protesters the bird and Biden: We must bankrupt the country to avoid bankrupting it and What top-tier economists use to analyze success Mere Rhetoric: WaPo: Obama Staffers The Bestest And Diligentest Staffers Ever. Especially That Gibbs Guy. He’s Super. Innocent Bystanders: The Stimulus Package that Forgot to Stimulate Anything Michelle Malkin: The more he talks about nationalizing health care and spending more money… and Inside the monstrous Obamacare bureaucracy and Two Democrats in New York abandon ship, give GOP control of state Senate and Billionaire to New York: Screw you and Your TARP dollars at work and Sen. Coburn: Our Watchdog and Spawn of the Spendulus Updated and Document drop: Porkulus One is a failure, so let’s do it again! and Bailoutmania: Not “permanent.” Just forever… and Tim Geithner is a joke in China, too and White House pushing to gag stimulus critics The American Pundit: Poor Babies: Obama Staffers Exhausted by the Stress of Wasting Money My Vast Right Wing Conspiracy: Stimulus fallout Radio Vice Online: Nice… Paychex founder goes Galt on New York – sort of Suitably Flip: New Evidence Confirms: People Rational American Elephants: They Lie, and Lie, and Lie in a Raw Grab for Power. Are You Going to Let Them Get Away With It? Vets On The Watch: Government Lies To Get Agenda Passed Breitbart.com: Rising unemployment accelerates foreclosure crisis Rasmussen Reports: Number Who Says U.S. Heading in Right Direction Slips to Lowest Level Since February The Patriot’s Mind: How Obamacare will Cripple the US Economy CNSNews.com: Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’ Temple of Mut: Detention Won’t Change a Delinquent NewsBusters: MSNBC’s Shuster Relies on Media Matters to Hunt for Truth About Conservatives Neoavatara: Health Care Reform: Reasons Taxing The Rich Is Stupid and Failure You Can Believe In: Obama Stimulus II [...]