Back in 2009 the Obama Administration predicted unemployment would rise to 9 percent by 2010 if Congress did not pass the do-or-die $787 billion stimulus bill. And while insisting that ‘only government’ could save the country from a recession President Obama promised that his life-saving stimulus would ‘create or save’ 3.5 million jobs.
1.9 Million Fewer Jobs Today Since ‘Recession Ended In 2009′
(CNS News) Twenty-eight months after Congress passed President Obama’s signature economic stimulus law, and nearly one year after he declared the summer of 2010 to be “Recovery Summer,” 1.9 million fewer people are employed.
In February 2009, the Bureau of Labor Statistics (BLS) reported that 141.7 million people were employed. By the end of May 2011 – the last month for which data are available – that number had fallen to 139.8 million, a difference of 1.9 million.
While the number of people with jobs has increased slightly from its low point during the recession – 137.9 million in December 2009 – those 1.9 million jobs have been lost despite $800 billion in stimulus spending.
[The economy] is not creating jobs fast enough to keep up with a combination of layoffs and people entering the job market for the first time.
Former White House chief economist Larry Summers notes, ‘If the trend continues the economy will suffer further in the future as college graduates delay entry into the labor force, reducing their lifetime productivity.’
“Beyond the lack of jobs and incomes, an economy producing below its potential for a prolonged interval sacrifices its future,” argued Summers. “Huge numbers of new college graduates are moving back in with their parents this month because they have no job or means of support.”
As both Summers and the BLS data make clear, the economy is not creating new jobs fast enough to make up for layoffs and new graduates, calling into question Obama’s oft-repeated claim that the economy is recovering and creating jobs.
In fact, by citing figures from the first quarter of 2006, Summers is understating the economy’s poor performance. According to BLS data, the number of people with jobs peaked at 146.6 million in November 2007, meaning that over the entire recession – which officially began in December 2007 – the number of people employed has fallen by 6.8 million.
On that note, let’s have a closer look at 3 current real-world examples of big government’s phony accounting practices:
#1: True Cost Of Fannie, Freddie Bailout $317 Billion – NOT $130 Billion
(CNS News) The Congressional Budget Office (CBO) says the real cost of the federal government guaranteeing the business of failed mortgage giants Fannie Mae and Freddie Mac is $317 billion — not the $130 billion normally claimed by the Obama administration.
In a report delivered to the House Budget Committee on June 2, the CBO said a “fair value” accounting of guaranteeing the two defunct mortgage companies – known as Government Sponsored Enterprises (GSEs) – was more than twice as high as the Office of Management and Budget had accounted for.
#2: US Stimulus (QE2) A Disaster
(Zero Hedge) Two and a half years ago, Christina Romer, then still employed by the Obama administration in the position of Chair of the Council of Economic Advisers penned “The Job Impact of the American Recovery and Reinvestment Plan” – a report predicting the impact of a fiscal “stimulus” that took out $787 billion from the pocket of American Taxpayers (subsequently discovered to cost even more) and put that money…somewhere. We are not sure where, because according to a chart now made legendary for its complete failure to predict the future, it sure did not go into creating jobs.
Below we present the original chart that made the January 10, 2009 presentation, and superimpose upon it the reality of the past two and a half years. It is simply stunning. And while we are here, and discussing the abysmal failure of QE2 (the impending arrival of QE3 notwithstanding), it is amusing to hear the whimpering of the likes of one Richard Koo, who is now claiming that all along the money from the Fed’s monetary stimulus should have been invested in the form of a fiscal one. Well, Dick, [the chart] also includes the impact of $2 trillion in incremental monetary stimulus. Combined, both fiscal and monetary stimulus has now missed the worst case projection for US unemployment for 30 months running.
Here is the simple truth: both monetary and fiscal stimuli are abysmal failures, when the economy is mean reverting to a state where it was hijacked from courtesy of 30 years of “great moderation” – and there is nothing that can be done to stop it. Correction: there is one thing – the Fed can destroy the dollar in its attempt to disprove simple physics. And, ultimately, it will.
#3. Obama’s Phony Accounting On Auto Industry Bailout
(Washington Post) With some of the economic indicators looking a bit dicey, President Obama traveled to Ohio last week to tout what the administration considers a good-news story: the rescue of the domestic automobile industry. In fact, he also made it the subject of his weekly radio address.
We take no view on whether the administration’s efforts on behalf of the automobile industry were a good or bad thing; that’s a matter for the editorial pages and eventually the historians. But we are interested in the facts the president cited to make his case.
What we found is one of the most misleading collections of assertions we have seen in a short presidential speech. Virtually every claim by the president regarding the auto industry needs an asterisk, just like the fine print in that too-good-to-be-true car loan.
Let’s look at the claims in the order in which the president said them.
“Chrysler has repaid every dime and more of what it owes American taxpayers for their support during my presidency — and it repaid that money six years ahead of schedule. And this week, we reached a deal to sell our remaining stake. That means soon, Chrysler will be 100 percent in private hands.”
Wow, “every dime and more” sounds like such a bargain. Not only did Chrysler pay back the loan, with interest — but the company paid back even more than they owed. Isn’t America great or what?
Not so fast. The president snuck in the weasel words “during my presidency” in his statement. What does that mean?
According to the White House, Obama is counting only the $8.5 billion loan that he made to Chrysler, not the $4 billion that President George W. Bush extended in his last month in office. However, Obama was not a disinterested observer at the time. According to The Washington Post article on the Bush loan, the incoming president called Bush’s action a “necessary step . . . to help avoid a collapse of our auto industry that would have had devastating consequences for our economy and our workers.”
Under the administration’s math, the U.S. government will receive $11.2 billion back from Chrysler, far more than the $8.5 billion Obama extended.
Through this sleight-of-hand accounting, the White House can conveniently ignore Bush’s loan, but even the Treasury Department admits that U.S. taxpayers will not recoup about $1.3 billion of the entire $12.5 billion investment when all is said and done.
Wall Street ‘masterminds’ baffled by slowing economy – prepare for QE3: HERE
CNN, ‘recession officially ended in 2009′: HERE
False unemployment and phony jobs claim: HERE
Media fall for phony ‘jobs’ claim: HERE
Job Impact Recovery / Reinvestment Plan PDF: HERE
Michelle’s shovel-ready speech – nothing but horse apples: HERE
Obama jokes, ‘Shovel-Ready was not as shovel-ready as we expected’: HERE
The big shovel-ready jobs lie: HERE
Oops! HHS Secretary Kathleen Sebelius admits to double-counting in ObamaCare budget: HERE
h/t: Erik, Rhonda
For numerous related articles, click ‘Continue reading’ below.
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Unemployment 9.6%: HERE
Do-Or-Die Stimulus: HERE
Government handouts surpass government income: HERE
US Government is bankrupt: HERE
Bankruptcy declaration for states sought — QUIETLY: HERE
Ben Bernanke interrogated: HERE
We are a nation of takers, not makers: HERE
Huge inflation found at Wal-Mart: HERE
US Debt Clock in real time: HERE
Warren Buffet, ‘Debt good. Attitude bad.’: HERE
Obama says, ‘We need a government that lives within its means’: HERE
CFO to Obama, ‘I’m exhausted of defending you’: HERE
2007-2010 Unemployment: HERE
‘Hope and Change’ numbers are in: HERE
Michelle Obama dances past unemployment line: HERE
Obama’s Playbook – published by 1940′s General Motors: HERE
Obama and Communist Party support One Nation Rally: HERE
Wow! 281 Chevy Volts sold just last month – thank you Mr. Obama!: HERE
GM spend $4 million in 3 months on lobbyists: HERE
GM covers ladyboy transgender surgeries: HERE
Bankrupt GM and Chrysler give managers big bonuses – up to 50% – after taxpayer funded bailouts: HERE
Cash For Clunkers II – ‘Charging America Forward’: HERE
Obama administration bought 1-in-4 GM hybrids sold: HERE
Taxpayers – $7,500 on the hook for every Chevy Volt sold: HERE
GM recalls 154,000 Chevys: HERE
Mainstream media publishes another GM press release as ‘news’ — Government Motors claims ‘chocolate rations’ are up: HERE
50 Things America should know about our economic loss: HERE
The end of Western Civilization: HERE