Monday, June 8, 2009

Stimulus Fail

Well, things are not looking that good in terms of results for this $787 billion dollar government spending spree which was passed in such a hurry, without being read by Congress, in order to save us from losing jobs. Now we are at 9.4% unemployment (the highest in 25 years), banks and automobile companies have been nationalized, the government is dictating corporate salaries and has structured bankruptcies to protect unions and penalize bond holders.

The country lost 345,000 jobs in May alone! And while the White House is saying job loss has slowed, even White House economic adviser Austan Goolsbee said, "The economy has clearly gotten substantially worse from the initial predictions that were being made not just by the White House but by all of the private sector". Goolsbee called Friday's jobs numbers, "encouraging, but really bad." The fact is that the so called stimulus plan has failed to stem job loss in the short term in the way the administration had predicted. When the stimulus plan was being rammed through Congress the Obama administration said that without the recovery package, the jobless rate would hit 8.8 percent in 2010! and that the recovery package could hold unemployment to 7 percent, and here we are with 9.4% unemployment and the numbers still rising. We have yet to see what the automobile plants closing this summer will deliver.

As far as any true job creation goes, it looks like most jobs being "created" these days are coming out of the government sector (i.e. census jobs, etc.) and not out of the private sector. That is something to really be concerned about, especially since the government doesn't "produce anything".

Wizbang says this:
Total job losses in May were 345,000 which put the unemployment rate at 9.4%. You have to dig a little further to find out that there were 70,000 jobs created in May by the government, not the private sector. Private sector employment fell by 611,000.
There are people who are not waiting for government jobs, nor do they want a handout - many of them are starting businesses of their own in states that have a decent business environment. Unfortunately in States like CT, it is so difficult to start a business; what with all the fees and permits and other costly government regulations, it can be discouraging. The job losses are still pretty staggering. Kids just coming out of college now are really hard pressed to find employment too.

Despite billions given to GM and Chrysler there will be major plant closings and job layoffs - which was what the government bailout was supposed to prevent. Now the car companies are looking for even more money. My guess is that had the government stayed out of this mess the companies would have gone through a bankruptcy, like they are doing now, and pieces of the company would have been bought up by enterprising entrepreneurs, like they are doing now, and we would have saved the taxpayers bundles of cash and the problem would have been attended to much sooner then enabling this long drawn out painful mess.

So who has been helped by this so-called stimulus?
Your guess is as good as mine.
Acorn comes to mind.
Unions comes to mind.
Corporate friends of Obama come to mind.
I don't think the folks like Henrietta, Julio and Peggy have been helped.

And yet, adding more fuel to our deficit fire, Obama is now looking to spend even more money that we do not have.

Also on the horizon is the horribly expensive behemoth of Universal Healthcare that Obama wants to cram down our throats so we can have government controlled expensive rationed healthcare just like the UK (and give Ted Kennedy some sort of legacy).

And meanwhile, General Electric and their affiliate media outlets are doing whatever they can to put lipstick on this ineffective stimulus plan and bad economic numbers. The plain truth is that things are not improving. Not by a long shot. We haven't seen the worst of it yet if you listen to people who really understand economics and monetary policy.

Obama said once that if the stimulus fails then he is out in 4 years. Do you think we can wait that long? (Yeah, yeah, yeah, he and his pals didn't cause this mess... blah, blah, blah)