STUDY: Obama’s Stimulus Fails to Create Jobs
Posted by FactReal on December 8, 2010
|American Thinker reported that the Obama stimulus net job creation is zero:
A study by Daniel J. Wilson of the San Francisco Federal Reserve Bank, suggests that the net job creation from the $814 billion stimulus bill passed in February, 2009, was zero by August 2010. In the first year, the stimulus “saved or created” 2 million jobs (not 4 million as repeatedly claimed by the Administration), but this number proved to be short lived, paying for temporary jobs, at a very high cost of $400,000 per job “saved or created.”
In fact, the unemployment rate is at a substantially higher percentage rate today at 9.8% than when the stimulus bill was passed.
– Read the rest of the article.
– Read the study.
We knew Obama’s stimulus would not work. As reported in 2009, facts and historical data show that government spending does not stimulate the economy:
Why Government Spending Does Not Stimulate Economic Growth
Most government spending has historically reduced productivity and long-term economic growth due to:
1. Taxes. Most government spending is financed by taxes, and high tax rates reduce incentives to work, save, and invest—resulting in a less motivated workforce as well as less business investment in new capital and technology.
2. Incentives. Social spending often reduces incentives for productivity by subsidizing leisure and unemployment.
3. Displacement. Every dollar spent by politicians means one dollar less to be allocated based on market forces within the more productive private sector….politicians seize that money and earmark it for favored organizations with little regard for improvements to economic efficiency;
4. Inefficiencies. Government provision of housing, education, and postal operations are often much less efficient than the private sector. Government also distorts existing health care and education markets by promoting third-party payers, resulting in over-consumption and insensitivity to prices and outcomes. Another example of inefficiency is when politicians earmark highway money for wasteful pork projects rather than expanding highway capacity where it is most needed.
HISTORY: NEW DEAL = RAW DEAL