Democrats’ Trillion-Dollar Stimulus Failed
Facts, they say, are stubborn things. And the simple fact is the Obama Administration has been the worst administration on jobs since the Great Depression. That is why they are now engaged in a massive public relations offensive to convince Americans that their stimulus plan has worked and created millions of jobs. As the data below shows, every prediction the administration made about how its 2009 stimulus plan would create jobs has turned out to be wrong
Most fundamentally, instead of creating jobs and reducing unemployment, the stimulus plan created more unemployment and reduced jobs. Overall, since the passage of stimulus in February 2009, 48 out of 50 states have lost jobs. One reason is the massive debt associated with all the new government spending. Using the administration’s own calculations and expert testimony to Congress, the added debt caused by the trillion-dollar plan has already cost 1 million jobs. And the uncertainty and future tax hikes associated with this and other Administration policies are causing real job creators to pull back on hiring.
In January 2009, administration economists predicted the President’s stimulus plan would “create between three and four million jobs by the end of 2010.” It didn’t. Instead, the U.S. has lost over 2 million jobs to date—and closer to 3 million private sector jobs when about 500,000 temporary census jobs (which will end this summer) are excluded from the calculations (Source: U.S. Department of Labor). In all, the U.S. is now about 7 million jobs short of the number the administration predicted its stimulus plan would create:
In selling their stimulus plan, the administration predicted unemployment wouldn’t rise above 8% if Congress passed its plan. But instead of falling to 7.3% as they forecast, unemployment has hovered near 10% since mid-2009:
Private Sector Employment
Of the millions of jobs that they predicted would result from the stimulus plan, the administration promised that “more than 90% of the jobs created are likely to be in the private sector.” Again, it hasn’t happened. While government employment has grown slightly, mostly because of temporary census workers, private sector employment has dropped by some 2.7 million jobs.
Construction and Manufacturing Employment
The administration predicted that certain sectors would fare best under its plan, specifically they said there would be a boost in construction and manufacturing jobs resulting from thousands of supposedly “shovel-ready” projects: “Certain industries, such as construction and manufacturing, are likely to experience particularly strong job growth under a recovery package that includes an emphasis on infrastructure, energy, and school repair.”
Americans are still waiting. Instead of experiencing “particularly strong job growth” as Democrats promised, construction (down 13.1%) and manufacturing (down 5.8%) have experienced rates of job destruction several times greater than the overall rate of private-sector job destruction (down 2.4%):
The administration promised that the stimulus would create not just any jobs, but good jobs providing full-time work and benefits. In fact, they said so many of those good jobs would be created that many people working part-time would be attracted into that full-time work: “A package is…likely to move many workers from part-time to full-time work.” Not so. Instead of moving workers from part-time to full-time work, the stimulus again resulted in exactly the opposite—a decline in full-time employment (down 1.8%) and a concurrent increase in unemployment and part-time work (up 0.3%):
The administration made several specific promises about how their stimulus plan would work for the American people. Instead, it has been an expensive failure for which Americans will be paying for many years to come. Rather than showing a record of job creation, the stimulus has been followed by other, dubious records: record unemployment, record number of Americans collecting unemployment benefits, and record tax hikes ahead to support the direct and indirect costs of Democrats’ 2009 stimulus plan. Those are the stubborn, and painful, facts.