Stimulus Spin: Is it Working?
EmailABC News’ Rick Klein reports: To close watchers of the stimulus bill — and the spin wars surrounding it — Vice President Joe Biden made a comment yesterday that may have been even more startling that his admission that waste and scams are inevitable. “You're going to see things start to really change in the second hundred days," Biden told a business roundtable at Pace University, according to the New York Daily News. "You're going to see this thing begin to move." What’s interesting about that comment is that the administration has maintained that the stimulus is already working. President Obama and his economic team have fanned out to make the case that the stimulus has already “saved or created” 150,000 jobs. Biden’s office last week issued a report titled “100 Days, 100 Projects” to tout projects (with some exaggeration) that the administration claims are happening because of the stimulus. But the truth is, even the Obama administration isn’t able to say for sure how many jobs the stimulus is saving and/or creating. No one is able to even say how many of the projects approved by the administration have even begun, because “it's such a moving target,” Jared Bernstein, Biden’s top economic adviser, said on ABCNews.com’s “Top Line” last week. With its promises to “save or create” 3.5 million new jobs, the Obama White House has set a fuzzy bar for itself; no one will ever really be able to say whether it’s been cleared. Even with the stimulus on the books, unemployment rose last month, and is likely to continue to rise in the coming months, according to the administration; the argument Bernstein and the economic team make is that job losses would be worse without the stimulus. The problem, as Republicans are eager to point out, is that it’s really not possible to measure a “saved” job. The administration will be collecting such data from those receiving stimulus funds, but has said those numbers will only be used to supplement other job indicators, and won’t be the final word on job creation. It’s an imprecise measurement in a very imprecise field: “To understand just how unknowable this data point is, it's not necessary to be an economist, a mathematician or a statistician,” writes Tony Fratto, an economist-turned-CNBC-analyst who was a deputy press secretary under President George W. Bush. “You only need to know this: the Bureau of Labor Statistics (BLS) — thousands of the most professional and rigorous counters and analyzers of labor data in the history of mankind — makes TWO revisions of employment data for their ESTIMATE of the PREVIOUS month! And even then the reports are mere estimates — an annual benchmark survey is required to reset the nation's payroll baseline.” “That is, the best employment statisticians the world has ever known, people whose lives are dedicated to employment data, conducting labor surveys and research, constantly refining their complex models, have a difficult time telling you how many jobs were created in the PAST!” There’s an undeniable political element to all of this, too. The Democratic Congressional Campaign Committee is already running radio ads against six Republican lawmakers, attacking them for opposing the stimulus package. “Did you know Congressman King voted against the Economic Recovery Plan?” reads the script in one of the ads, targeting Rep. Peter King, R-N.Y. “He opposed an $800 tax cut and opposed creating or saving 215,000 New York jobs. Tell King to put New York first.” The ads amount to a gamble by Democrats not simply that the stimulus is working, but that it will be deemed a political winner next November. “It is working,” DCCC Chairman Chris Van Hollen, D-Md., told us on “Top Line” Tuesday. “And as the president said the other day, about 150,000 jobs have now been saved or created as a result of the economic recovery plan. A lot of people would have been laid off, but for the fact that there are more road or bridge projects out there.”
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Spin? Hardly. The president’s economic fix is working.
Posted by: matt | June 3, 2009, 11:59 am 11:59 am
Stimulus money is nothing more than taxing working people then turning around and giving them the same money back minus money that went to GM, CITIBANK, the POCKETS of OBAMA and his friends or WELFARE QUEENS.
Then attaching strings to the money while the welfare queens have no strings attached.
Posted by: randal | June 3, 2009, 12:13 pm 12:13 pm
“Spin? Hardly. The president’s economic fix is working”
=================================
LOL…right…..
Let’s take an extraordinarly simple example for you Matt.
Those 25 police officers that supposedly had their jobs saved by the great “Stimulator”. Remember the President making that trip…the big photo op….the nice little fantasyland moment?
Now back to reality…..
The truth is these cops will NOT have jobs unless the citizens of Columbus, Ohio agree to ….. A TAX HIKE! Wow, golly jeesh, look at that. You need something, you have to actually get the money & PAY for it. What a concept!
I wonder if Barney Frank & Joe “the Man?” Biden are paying attention at all.
Now, this was pretty damn straight forward when it comes to the difficulty scale of completeing a task. YET a big ZERO for Obama, the DEms & the “Stimulator”!!!
We cant even get things done right to hire 25 cops, and you people actually beleive your going to get another “Fantasy Island” with Universal Healthcare! We had all better hope that one dies fast. We don’t need another STUPID Democrat plan that noone will read or have any clue how to actually implement rushed through the Congress.
Posted by: Mike_C | June 3, 2009, 1:15 pm 1:15 pm
In case you GOP idiots havent noticed, the economy is bouncing back……….
Its funny how republicans complain about TARP like its not their program. Remember they came up with it, and they voted for it back when Bush ruined the country and the world.
How is it that the GOP caused all these problems (Surplus to Debt, Iraq, Foreign Policy) and then ridicule the DEMS for not fixing them fast enough
Posted by: Javon | June 3, 2009, 2:28 pm 2:28 pm
what’s the big deal about these comments? the entire stimulus plan is a wasteful scam.
Posted by: davidfrat21 | June 3, 2009, 4:26 pm 4:26 pm
news of stimulus success. i would love to see the jobs created but it is not happeneing here in california. KEEP IN MIND THIS BILL WAS CRAFTED BY NANCY PELOSI…..who cant seem to ever tell the truth. for the good of the country she should quit.
Posted by: catman | June 3, 2009, 5:05 pm 5:05 pm
THE ONLY PLACE WHERE A STIMULUS PLAN IS WORKING IS IN TEXAS – THEIR OWN STIMULUS PLAN. IT’S CALLED NO STATE OR CITY INCOME TAXES AND A VERY FRIENDLY PRO BUSINESS ENVIRONMENT. THE OBAMA STIMULUS PLAN IS LIKE BLOWING FRTS IN THE WIND – IT WILL COME BACK IN OUR FACES. DUH.
Posted by: Jimbo | June 3, 2009, 10:52 pm 10:52 pm
Its way too early to determine whether the stimulus plan is working – and everyone in government knows that. This is like trying to predict a major election from the votes counted 5 minutes after the polls close. Sorry – its going to take a bit longer to get any idea of whether things are working.
I have wondered what happened to Geithner’s toxic asset plan? If that worked, it would be a step in the right direction – and if it didn’t work, it would be more money in the toilet.
Don’t mistake the stimulus with Obama’s astronomical and over-ambitious budget. That’s what gives me the creeps. $3.2 trillion in one year is a big chunk of change. If Obama’s “theories” are right – then it might be worth it. However, if he is wrong, then we are in deep trouble and severely in debt with nothing to show for it.
If we don’t stop growing the budget exponentially – it may very well undermine the progress of our economy. Throw in a universal health care plan and we are way overdrawn to the point where even the Chinese are worried about our stability.
Posted by: Jon F | June 4, 2009, 5:51 am 5:51 am
The point this writer is making is that the Obama Administration can’t prove the actual number of jobs created by the Stimulus Funding to State / Local projects.
My question is: if this is true how can you tell that the new funding won’t due exactly what they say ???
Posted by: Jim Donlin | June 4, 2009, 10:23 am 10:23 am
It’s Voodoo Politics and Voodoo Economics. Economist Walter Williams said the stimulus bill is like taking water out of the deep end of the pool and pouring it back into the shallow end of the pool. You have to subtract all the water wasted or spilled on the way from the deep end to the shallow end – call that government bureaucracy. So in the end the pool has less water than it had before – so the democrats answer is to repeat the drill only faster.
Posted by: BellaMia | June 4, 2009, 10:32 am 10:32 am
Stimulus is working? Sure is. Working for the UAW who received much more for their share of GM and Chrysler at taxpayers expense. It’s working for GE, who will be getting most of the “green” contracts. Seems it is working for anyone who contributed heavily to Obama’s campaign.
Posted by: wheresmymoney | June 4, 2009, 2:52 pm 2:52 pm
America, in its frenzied desire for “change”, elected a textbook political charlatan as POTUS. Elections matter.
Posted by: vinman | June 8, 2009, 9:48 am 9:48 am
re: ReaganFan:
“In case you GOP idiots havent noticed, the economy is bouncing back………. ”
The most optimistic picture at this time is not that the economy is bouncing back. It’s that the rate of descent is slowing.
(Example: The rate of growth in unemployment declined last month. This is far different than the economy bouncing back and net jobs being created.)
Posted by: Joseph | June 8, 2009, 11:25 am 11:25 am
I went to lunch to today and “created or saved $50”. I chose to eat a soft taco from Taco Bell rather than eat a steak from Ruth’s Chris…
Let’s see. Did I really create or save anything, or did I spend $4.56? I’m not so sure. The former sounds like my wife’s day of shopping at the mall.
Does anyone believe this B.S.? Apparently semantics, verbal tricks, straw men, and sleight of hand seem to be what 59.4% of American public count as leadership these days.
Let’s see. Temporary construction jobs, census jobs, and permanent government jobs is a COST to society, not a benefit. Those evil corporations making profits and producing jobs here and overseas – THAT would be a benefit. Too bad they have to TAKE money from them and us to pay for these other stimulus jobs. Too bad corporations and taxpayers in some cases are taking their toys and moving out to greener pastures. Bye-bye manufacturing. Real jobs are evaporating.
Dude this is very similar to Atlas Shrugged, except that business owners are not on strike, they are leaving or folding. There are still places to go.
They will likely call it “profit seeking contingency operations” when these businesses leave. I will just call it economic disaster.
Posted by: Don | June 8, 2009, 3:19 pm 3:19 pm
Breaking News: In the preceding quarter, it appeared, the Tenth Three-Year Plan’s quota for bootlaces had been over-fulfilled by 98 per cent.
Posted by: michael | June 8, 2009, 4:37 pm 4:37 pm
The economy is bouncing back! Look at the unemployment numbers, 9.4%. Are you kidding me! Too conclude the economy is bouncing back because unemployemt is growing at a slower rate is rediculous. I would conclude that companies are merely laying off at a slower rate, but have not and will not increase their business (which would be economic growth) untill we see clear signs of economic improvement. Lay off the crack pipe libs and do some home work.
Posted by: kevin | June 8, 2009, 5:53 pm 5:53 pm
If the economy is ‘bouncing back,’ as reaganfan contends, with only 10% of stimulus money spent, then it seems that the economy will bounce back on its own. Why don’t we just save the other 90%!!!!????
Ups and downs are a natural part of the market.
And in case anyone forgot, Bush started the TARP in consultation with guess who … Obama.
I would blame ‘ruining the world’ on greedy CEOs and other top level executives, along with the arrogant, self-serving super-rich. I doubt any of them could live on my income for a month … not even on paper!
Posted by: Linda | June 9, 2009, 6:04 pm 6:04 pm
Like the big dig that was all about unionism- another boondoggle in New Jersey($8Billion )will be reserved for union workers.Only the gov’t has deep enough pockets to afford construction done by unionized workers.
Posted by: Bob | June 10, 2009, 11:50 am 11:50 am
The question itself is ridiculous. The stimulous bill is Keanesian Ultra liberal throwing someone elses money at a wall to see whether it will stick.Before this idiot in the White House started destroying our economic
stability he should have checked other people who tried the same boondoggle . Presidents FDR ,Hoover and the guru who concacted this Financial nightmare . John Keane tried it after WW1 and also WW2 . Ecomuy in the UK after Keanes stimulus packages was thrown out when Margaret Thastcher was elected Prime Minister and the coutry became financially stable and propered . Ask Barry Soetero has his Stimulous package decreased unemployment.In fact the unemployment is reaching double digits. Obama makes Carter look very good !
Posted by: Billyc | June 29, 2009, 12:49 pm 12:49 pm