Back in February or March the head of the CBO, Doug Elmendorf, admitted that they did not actually look at the stimulus’ effect on the economy when they boasted it had saved 1.5 million jobs. So what did they do? They used the prediction model again and passed that off as new results. They basically assumed the Keynesian economic model (which has never worked) would work. That is something, isn’t it. I wonder why the MSM never ran with that story.
People that have actually crunched some real post stimulus numbers have concluded that there is no correlation between the current excessive government spending and unemployment. Just as there was none with Hoover, FDR, or even Bush for those haters out there. (which is exceptionally funny when Bush haters blame him for the economy, but then think Obama is handling the economy correctly…if you need an explanation, just ask) Even worse for the Obama administration is that more money did not go to areas with high unemployment rates and the total cost to the taxpayer for each job created was $286,000.
There are also some other statistics that you should pass along to your liberal friends. The first is this: The government is growing faster that the private sector…meaning they are hiring more people. The second is that large companies are hiring more than smaller businesses.
This gives us an idea of what kind of recovery, if any, we are experiencing right now. If the fact that small business is not recovering before big business does not raise the red flag for you, then the fact that the federal government is growing faster than private industry should. This leads me to believe that with the repeating of FDR’s mistakes, we will also see his double dip recession. That is, if we do not start making smarter decisions now. The reason, economically speaking, is that the federal government is growing at a crazy rate, but they have no money. It is all on credit. Just think about it. If you fall on hard times, does running up your credit card make you better off in the long run? The answer is obviously no. You will fare ok short term, but eventually it will be the end of you. The same is true for government and no utopia progressive thinking is going to change that.
But I have never accused a liberal of long term thinking or planning. They should see the short term though. And in the short term you are seeing that the result of their big government policies are increased lobbying by big business and increased work from the government instead of from private clients. There are multiple problems with this. First, this work from the government is paid for with borrowed money as I mentioned before and is not sustainable (double dip). Second, the increased intermingling of Washington and business (something liberals supposedly detest) is actually promoted with their policies. I am not exactly sure if they do not see it, or they just hope average Americans do not, but either way, it is a reality. The more government gets into private business, the more these companies spend money on lawyers for lobbying, and the less they spend on new products, new innovations, employee benefits…etc. This is a dangerous cycle that will not end until Washington gets out of private industry. Blame big business all you want for their splinter, but just remember there might just be a plank in your own eye.
So this is our recovery. I would say Obama is building it on sand.
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