White House Adviser: Economy ‘Deep in the Woods’ – but Stimulus is Working
EmailABC News’ Rick Klein reports: With the stimulus bill now on the books for more than 100 days, the White House is eager to tout its impact on the economy – even while acknowledging that the nation is still in a recession, with further job losses all but inevitable. On ABCNews.com’s “Top Line” today, Jared Bernstein, the chief economic adviser to Vice President Joe Biden, told us that the unemployment rate is likely to continue to rise this year, despite the approval of the $787 billion stimulus package. But the package is still on track to “save or create” 3.5 million jobs, Bernstein said. “The economy is still in recession. Let’s be very clear about that. When you’re losing hundreds of thousands of jobs per month, and unemployment is rising — and we expect both those things to continue for months to come — that’s a recession,” Bernstein told us. “We’re not out of the woods. We’re deep in the woods. But there are some signs that suggest the worst is behind us,” he said. Bernstein comments come as the White House continues its effort to convey optimism about the state of the economy. “When you look at the economy right now I think it’s safe to say that we have stepped back from the brink, that there is some calm that didn’t exist before,” President Obama said last night at a fundraiser in Los Angeles. The White House is also eager to talk up the impact of the stimulus package. Said Bernstein: “The idea here is that, yes, the unemployment rate is rising, but it would be rising more quickly [without the bill]. . . . We’re spending about $1 billion a day — and, by the way, with very careful oversight — and that’s creating, again, economic activity that would not have occurred in the absence of this plan. That’s the essential point.” Obama’s presidential transition team originally predicted that a massive economic stimulus package would help hold the national unemployment rate below 8 percent. But such forecasts have had to be revised. The latest government jobs report pegged the rate at 8.9 percent and rising, with many economists expecting it to reach double digits later this year. The White House expects GDP growth to reach positive territory later this year, Bernstein said — but not in a sharp enough turnaround that it’s likely to bring the unemployment rate up. “Positive GDP growth doesn’t mean lower unemployment,” he said. “You have to get GDP growth at trend or above trend to get that unemployment rate down. That’s why it’s key that the plan keeps working through next year.” The president is claiming that the stimulus has already “saved or created” 150,000 jobs, though Bernstein acknowledged that that’s an estimate that isn’t based on reports of actual jobs being saved or created. When that information comes in, he said, it is “going to be part of our estimate.” Bernstein said there are “3,000 construction projects that are out there in the economy underway,” but he said he couldn’t be sure how many projects have actually begun. “It’s such a moving target,” he said. The administration this week said that $116.1 billion in stimulus money has been made available for spending, but that only $31.1 billion had actually been spent. On Wednesday, Biden submitted a report entitled “100 Days, 100 Projects,” touting the stimulus act’s successes. But not all of those projects have actually begun, and at least some of the descriptions of projects seem overhyped, as ABC’s Jake Tapper reports. Click HERE to see our full interview with Jared Bernstein. We also chatted with Politico’s Jonathan Martin about the Supreme Court battle (or lack thereof), and the continuing controversy surrounding Sen. Roland Burris, D-Ill. Click HERE to see the interview with Jonathan Martin.
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lets see.. Obama is touting 150,000 saved or created
We’ve lost 1.56 million jobs under Obama
His sheriff deputy dawg (biden) is in a hole somewhere and can’t account for the money
Hmmmmmmmmm.. yep good job Obamie
Posted by: LMAO | May 28, 2009, 2:09 pm 2:09 pm
The Borgen Project has good info on the estimated cost of ending global poverty:
$30 billion: Annual shortfall to end world hunger.
$550 billion: U.S. Defense budget.
Posted by: Tenisci | May 28, 2009, 2:16 pm 2:16 pm
Obama’s statement is an out and out lie.
Jobless claims rose 623,000 this month and the stimulus is working?
What a joke this guy is!!!
Posted by: ConstantXI | May 28, 2009, 2:34 pm 2:34 pm
Tell the big lie and hope people are stupid enough to buy it. That’s Obama’s strategy.
Posted by: ConstantXI | May 28, 2009, 2:35 pm 2:35 pm
If they calling it a stimulus, I dont want anymore stimuluses. Its not working. He said it created or saved 150,000, but we losed 623,000 between april and may. What the heck is he talking about.
Lets face it folks, the TARP and the Recovery Act ruined us.
Posted by: nubiangent08 | May 28, 2009, 2:40 pm 2:40 pm
When will someone in the media call Obama on this “save or create” lie he constantly repeats?
The use of “save” is such a fraud and copout because it means, even if we lose jobs(which we have under Obama’s watch), that Obama can still disingenuously argue he has “saved” jobs.
This is so disingenuous and misleading.
The fact Obama has to resort to such gimmickry to try to pump up his failed porkulus bill shows how weak the porkulus bill really is in terms of helping the economy.
Posted by: ConstantXI | May 28, 2009, 2:42 pm 2:42 pm
Where is the bottleneck on jobs? Less than one third of the money available has been spent. Who is tying up this money? If neither the private sector nor the govt can help jobless people get employed, we are no longer in a recession but a depression.
Posted by: Bob | May 28, 2009, 2:48 pm 2:48 pm
Well here is your change people. That is all you are going to have left. Once the national sales tax is enforced, where is the tax break we are all going to get. I am very scared for my country as well. I see a revolution brewing here. We are doomed as a country. I just have a bad feeling. Iran with nukes, North Korea etc. One of those nuke will get here if we dont stop it. You all should be frighten. The end is upon us.
Posted by: CK | May 28, 2009, 2:51 pm 2:51 pm
The stimulus is a joke. They create new dollars on a printing press to steal wealth from everyone who holds existing dollars. Then they take the new money and dump it back into the economy. Trying to fix the economy this way is like trying to cure an anemic patient by extracting blood from one butt cheek and injecting it into another.
Posted by: Obummer | May 28, 2009, 2:52 pm 2:52 pm
The Obama disaster is just that. PAYOLA for him to do anything he wants. Unemployment is exploding. Home LOSES are HUGE and growing. The market? At 1990 levels. Obamanomics a total FAILURE.
A COMPLETE game pushed by FOOLS and morons and making us poorer and less safe. Look at North Korea and Iran and China.
Posted by: ChicagBob | May 28, 2009, 2:53 pm 2:53 pm
Fact is, no one outside of the WH can account for where all the money went. 150,000 jobs? That’s even within the margin of error when you consider the number of jobs that are lost in a month’s time. If this were any other administration, there would have been talks of impeachment for financial misrepresentation. For all I know, this money could have been spent on Joe Biden’s ice cream.
Posted by: Gina | May 28, 2009, 2:57 pm 2:57 pm
The unemployment rate may be bad but I hear that that the government is doing a lot of hiring. Tumors thrive even when the patient is dying.
Posted by: Obummer | May 28, 2009, 2:58 pm 2:58 pm
They have to say they are doing good. Even if it isn’t true! The Reagan “Trickle Down Economics” by a new name is not working, because the big dogs are holding onto the money. Oh! Part of the big dogs are Congress themselves. The wheels are coming off the world. Wait till the Taliban get hold of Pakistan’s Atomic Weapons! We’ll be in another war in Pakistan. We are not doing anything to stop it. And why isn’t ABC news reporting on this disaster? Maybe cause ABC has their own agenda. The Big O!
Posted by: Retired | May 28, 2009, 3:00 pm 3:00 pm
It’s not working nor will it work because the very concept of spending our way out of trouble is flawed. We blew too much money for the past 8 years then the gullible idiots vote in Obama to spend triple the amount. Smart move you bunch of idiots.
Posted by: Larry | May 28, 2009, 3:01 pm 3:01 pm
Whether you agree with Obama’s actions are not, at least he’s trying, unlike the Goobers Only Party.
Posted by: JR | May 28, 2009, 3:09 pm 3:09 pm
That is why we need scientist in DC and not lawyers. Obama and his “save and create” will take credit for “saving the economy”. Similarly as Bush took credit from “keeping us safe”. What is next, “I hit you because I love you”.??
It does not matter how bad the economy gets in the next years(and it will get worse) they will claim that it could have been worse without the stimulus.
Posted by: abcd | May 28, 2009, 3:11 pm 3:11 pm
The stimulus money is not working. I lost my job this month. My company laid off 500 people, where is the job creation that Obama talked about, I’ve stayed in contact with former co-worker and everyone is looking but no one is landing any job offers.
Posted by: John | May 28, 2009, 3:15 pm 3:15 pm
tenisci: 30 billion this year 85 billion next year 200 billion the next year 1.8 trillion the next . You can’t just feed people without creating a whole new problem.
Posted by: feelingtogetherness | May 28, 2009, 3:17 pm 3:17 pm
The stimulus money is not working. Obama lacks the integrity to speak to the people and explain why we are not seeing these dollars in our households when they are so desparately needed. Texas governer, Rick Perry, has accepted federal funds to rebuild his Texas Whitehouse while rejecting the extra unemployment funds so Texas families can keep their homes while unemployed……What a waste!
Posted by: GirlOnTheRun | May 28, 2009, 3:29 pm 3:29 pm
Congrats ABCNEWS – “Stimulus working – Riiight” This administration is a joke and we know it.
Posted by: heavenislikethis | May 28, 2009, 3:30 pm 3:30 pm
Blah, Blah, Blah.
Posted by: Ted | May 28, 2009, 3:34 pm 3:34 pm
The “stimulus” was to arouse the fat cats on Wall Street. They took the money to prop-up market indexes and turn a quick buck. The fat cats and the Washington wizards scratch each others backs and a good scratching is stimulating for a fat cat. Just try it at home with your own cat. As for the rest of us, we cough and sneeze and cry from all the dander.
Posted by: betty | May 28, 2009, 3:43 pm 3:43 pm
Yeah, it’s working to create more government jobs, which we will then have to raise taxes to pay for.
Posted by: dave c | May 28, 2009, 3:55 pm 3:55 pm
Obama can tout what he wants but super inflation is comming because of all of the irresponsible spending he has been and continues to do. Mark my words, a year from now gasoline will be above $4.00/gallon and climbing to five. Part of this is because the socialist Obama wants this to happen so he can take control of the oil companies like he is the auto companies. You wanted change, now you are about to get it.
Posted by: billy bob | May 28, 2009, 4:10 pm 4:10 pm
“On Wednesday, Biden submitted a report entitled “100 Days, 100 Projects,” touting the stimulus act’s successes”
LOL,
If Biden’s involved, you know any information will be seriously exaggerated! Every time he opens his mouth, someone in the administration has to “explain” what he meant. Yeah, he is a great ASSest to the country!
Hey Joe, how much did that dopey false report cost? If you did your job and had the transparency in place, there would be NO need for any “report”!
I am no Obama fan, but even he must feeling like his VP is anchor welded to his leg about now!
Posted by: Mike_C | May 28, 2009, 4:11 pm 4:11 pm
Wall Street Fat Cats have been the target of the so-call stimulus. They stay fat. We get the asthma and the country goes bankrupt. Washington gets contributions.
Posted by: sarah | May 28, 2009, 4:14 pm 4:14 pm
Oh, who can take tomorrow, dip it in a dream
Separate the sorrow and collect up all the cream
The Obama man, oh the Obama Man can
The Obama Man can ’cause he gives away the loot and makes the world taste good
Posted by: LongT | May 28, 2009, 4:17 pm 4:17 pm
LOL, yeah…the “Stimulus” is working….
I guess that depends on yuor defintion of working. Ask those 25 cops in Columbus, OH just how well it worked.
All that foolish hype and the drooling media at that photo op earlier this year. Now we findout that the cops wont even have jobs if the people of Colombus dont go for ….come on Liberals say it with us now….A TAX INCREASE!!!!!!!!!!!!!!!
Biden puts out a report that is “factually incorrect” (New term soon to be used on a daily basis by this administration) on the “success” of the stimulator program.
I am sure somewhere out there there are a few projects which have benefited from it, so PLEASE whoever is in charge of them…..CALL JOE!!! (thats 1-IDO-NOT_KNOW)
Posted by: Mike_C | May 28, 2009, 4:41 pm 4:41 pm
yeah jr hes destroying us wake-up
Posted by: natale from mass. | May 28, 2009, 4:49 pm 4:49 pm
Stimulus, what stimulus??? I haven’t seen any stimulus in my area. Family of 5, under 100K a year, one heading for college that I can’t afford, and losing the tax breaks I currently have. — I guess he meant the other middle class.
Posted by: Phil | May 28, 2009, 4:52 pm 4:52 pm
The economy is still in recession. Let’s be very clear about that. When you’re losing hundreds of thousands of jobs per month, and unemployment is rising — and we expect both those things to continue for months to come –that’s a recession,” Bernstein told us.
So he just defined a recession for us. No duh, Sherlock.
So let me get this straight, the stimulus money was not meant to help the economy out of the recession???
Posted by: sexygop | May 28, 2009, 5:19 pm 5:19 pm
Sure it is…just keep telling that to yourself.
Government taking over most aspects of the economy is just a great idea since they’ve to be so good with budgeting, innovative thought, and economic understanding (I’m dripping sarcasm for those that are that deluded to think I was serious.
Posted by: Rochelle | May 28, 2009, 5:23 pm 5:23 pm
ABC News was once a news agancy. Now they are just the hail Obama agencu just like NBC and CBS. I remeber when we could read and hear the news now we just hear about how great he is. A few years from now when he is out of office maybe we will get the Correct News not the Bu** we get now!
Posted by: Rich | May 28, 2009, 5:31 pm 5:31 pm
The steel industry is afraid to invest in the US due to the threat of cap and trade, coal plants are worried, expanding nuclear power seems to be off the table, drilling oil and developing our shale seems to be out too. These things create REAL American jobs. The Congressional Budget office always said Pres Obamas job projections were high. Guess so. You can’t tax and spend a country into solvency. If they continue on with their new idea of a Value Added Tax, (federal sales tax of 10%), it will reduce purchase power and growth, and then increase costs to businesses and households with cap and trade……how many more jobs will disappear? When are the democrats going to look out the window and really see what they are doing to this country?
Posted by: Sad | May 28, 2009, 6:12 pm 6:12 pm
They should really stop hyping the stimulus package. Only $31 billion has actually been spent – and at least half of that has gone to state funding for present programs, not new ones.
Half the stimulus money won’t even be spent until 2010 – so lets get real here about who is spending our money how quickly for what purpose.
These same people claim how the housing market is letting up because of a few transient indicators last month. Well they were rudely awakened to the fact that they were wrong when new numbers came out this month that indicated we haven’t even reached the bottom yet.
Stop trying to fool the American people. Talk about your merits when they really materialize. It is less than productive to keep blowing your horn – when it just gives people a false sense of security.
Posted by: Jon F | May 28, 2009, 6:23 pm 6:23 pm
The Stimulus is Working?
Where’s the Proof?
Other posters here are correct there
is no way to determine a “saved job”!
This is a bogus stat created by
Team Obama aka Team Titanic.
Are they saying that people who are
still employed this week had their
jobs saved by President Obama?
Ridiculous!
Finally how can the “Stimulus” be
working when most of the money hasn’t
been spent?
More lies from the “most transparent”
administration in U.S. History.
Tranparently Dishonest!
Posted by: reaganfan | May 29, 2009, 2:41 pm 2:41 pm