Tag Archive: Stimulus


Why It’s So Hard To Figure Out What The Stimulus Did

 

 

AEI/Jim Pethokoukis

 

 

” That’s why I think the best way to judge the stimulus as a whole is to say that we don’t really know how well it worked—but that it didn’t live up to some of the promises that were made when it was passed.

  In theory, fiscal stimulus juices the economy through a multiplier effect, in which one dollar of borrowed government spending produces more than a dollar of overall economic gain. With a multiplier of 1.5, a stimulus of $100 million would produce $150 million in economic activity. A multiplier of 2.0 would result in double the economic jolt of the initial cash infusion. The higher the multiplier, the bigger the boost.

  The problem, as I noted in my April 2013 story on the stimulus, is that no one really knows what multiplier effect of fiscal stimulus is. Reputable economists don’t even really agree about the possible range for the multiplier. Some economists think it could be in the range of 3.0 or even higher, given the right circumstances. The Congressional Budget Office puts the estimated multiplier for government purchases at somewhere between 0.5 and 2.5. A broad survey of estimates by University of California San Diego economist Valerie Ramey found that the range was usually between 0.8 and 1.5, although the data could support anywhere from 0.5 to 2.0.”

 

   The whole issue is quite confusing , even to trained economists , but one thing seems like a no-brainer to me . While the egg-heads debate the effective rate of the government “multiplier” and give it a possible effectiveness rating of up to 2.5 … meaning that every dollar the government spends produces as much as 2.5 dollars in economic activity , a simpleton like myself asks how can that possibly be ? 

 

  For every dollar the State spends is taken out of the economy by way of taxes , greases a few federal palms by way of wages and overhead and then is redistributed into the economy . By the time that original dollar is sent on it’s way to “stimulate” economic growth it’s value is not a dollar but probably less than fifty cents ( we could not locate accurate administrative costs , quickly enough for this post ) . 

 

 If it costs the tax payer 50 cents on the dollar for the Feds to be the middleman in a redistribution scheme of epic proportions how could said stimulus , which was nothing but redistribution , achieve ANY positive economic effects AT ALL  other than securing the jobs of the bureaucrats and administrators themselves ?

 

   I am not an economist but have been a businessman for thirty years and if I “stimulate” my vendors by paying more so they can keep their employees living in the comfort to which they’ve grown accustomed that lowers my profit margin and takes food off of my table . Who benefits ? Not the consumer/taxpayer that’s for sure .

 

 The idea that the State can “stimulate” growth is predicated solely on the notion that the government knows better how to spend the individual’s hard earned money and can do so more efficiently than the earner . If anyone believes that mail a letter , take a ride on Amtrak or visit your local VA hospital for much needed healthcare . Let us know how you make out .

 

 

 

 

 

 

 

 

 

 

 

 

About these ads

Do You Trust This Administration?

 

 

 

” The Obama Administration has a few problems. From Benghazi to the IRS to the phone records of journalists and everyday Americans, it’s not difficult to call up a scandal with investigations pending in Washington.

So immigration reform makes for a nice distraction.

In his weekly address on Saturday, President Obama called immigration reform “an issue that the vast majority of Americans want addressed.”

This sounds like wishful thinking on his part, considering that unemployment is stuck at 7.6 percent and Americans consistently say that the economy is their No. 1 concern.

What the bill does do is give federal agencies more power.”

 

     By all means let’s give the Federal government more power . Our lives aren’t effed up enough yet . As you can see above the immigration reform issue is nowhere in sight as far as most voters are concerned . Ditto for gun control . How much more out of touch can an administration be ? 

    The trust deficit continues to grow as more revelations come to the fore regarding a seemingly endless stream of abuse of power by the government and this administration . 

 

 

 

 

 

 

 

 

Austerity Myth

 

 

 

 

” Europe’s struggles prove that “austerity” fails!

With a condescending sigh, they explain that Europe made deep cuts in government spending, and the result was today’s high unemployment. “With erstwhile middle-class workers reduced to picking through garbage in search of food, austerity has already gone too far,” writes Paul Krugman in The New York Times.

One problem with this conclusion: European governments didn’t cut! If workers pick through garbage, cuts can’t be a reason, since they didn’t happen.

Some European countries tried to reduce deficits by raising taxes. England slapped a 25 percent tax increase on the wealthy, but it didn’t bring in the revenues hoped for. Rich people move their assets elsewhere, or just stop working as much.

Iceland was hit by bank collapses — but government ignored street protests and cut real spending. Iceland’s budget deficit fell from 13 percent of gross domestic product to 3. Iceland’s economy’s is now growing.

Canada slashed spending 20 years ago and now outranks the U.S. on many economic indicators.

Around the same time, Japan went the other way, investing heavily in the public sector in an attempt to jump-start its economy, much as the U.S. did with “stimulus” under President Obama. The result? Japan’s economy stagnated.”

 

 

 

 

 

 

 

 

 

OBAMA SPENT $11.45 MILLION PER ‘GREEN JOB’ CREATED

 

 

” In 2008, then-candidate Barack Obama promised to create 5 million “green jobs” if elected president. However, an analysis by the Institute for Energy Research (IER) finds that since 2009, the Department of Energy’s (DOE) $26 billion loan program created just 2,298 permanent jobs, at a cost of $11.45 million per job created.

In his New York Times bestselling book Throw Them All Out, Government Accountability Institute President Peter Schweizer revealed that 80% of Department of Energy loans went to companies owned by or connected to President Barack Obama’s top campaign fundraisers.”

 

 

 

 

 

 

 

Vitter: Why Do Democrats Get 3 Times As Many Obama Stimulus Grants As Republicans?

 

 

 

” President Obama’s 2009 stimulus bill contained funding for Transportation Investment Generating Economic Recovery (TIGER) program grants. Democratic districts have received $356,109,553 from the program, compared to just $132,272,695 for Republican districts.”

 

 

 

 

 

 

 

 

 

Senate Democrats’ Budget Includes Nearly $1 Trillion In New Taxes

 

 

 

” The first budget from Senate Democrats in four years includes nearly $1 trillion in new taxes but would not balance the budget.The budget would dedicate $100 billion to economic stimulus in the form of infrastructure spending and job training.”

 

More union gifts , graft and no balanced budget … 

 

” The Ryan budget would balance in 10 years without raising taxes and by reducing spending over the next decade by $5.7 trillion compared to the CBO baseline.”

 

 

 

 

 

 

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14 Big Government Programs That Failed to Achieve Their Goals

 

 

prohibition

 

 

” Prohibition was instituted with ratification of the Eighteenth Amendment to the United States Constitution on January 16, 1919, which prohibited the “…manufacture, sale, or transportation of intoxicating liquors within, the importation thereof into, or the exportation thereof from the United States…”

Congress passed the “Volstead Act” on October 28, 1919, to enforce the law, but most large cities simply ignored the law and bootlegged alcohol to meet demand, creating a huge black market rife with crime and corruption. Prohibition was repealed by the Twenty-First Amendment in 1933, essentially acknowledging the exercise had been pointless and counter-productive.”

Obama’s Ridiculous Fiscal Cliff ‘Offer’ Is An Epic Non-Starter

 

 

 ” Barack Obama desperately wants to take the country over the fiscal cliff.  That’s the only conclusion one could possibly draw from the absolute dementia masquerading as his administration’s opening offer.  Here’s the basic rundown of what the president would like to see happen.

  • $1.6 trillion in tax increases – not just on the wealthy, but on businesses the administration views unfavorably, such as oil.
  • $50 Billion in new stimulus spending
  • A deferment – of a single year – on the military sequester
  • An extension of unemployment benefits for those out of work
  • Federal money to shore up underwater mortgages

To top off the lunacy, President Obama would like nearly unlimited power to raise the debt ceiling whenever he likes, as high as he likes. This is something Timothy Geithner hinted at a few weeks ago.  If Obama has his way, the only constraint on this power would come when a difficult-to- achieve Congressional supermajority chooses to override his decision. “

 

 

 

Illustration By Lisa Benson

Stimulus-Funded $300 Million Chevy Volt Battery Factory Has Never Shipped A Battery

 

” “Bin Laden is dead and General Motors is alive.” That’s what the Democrats keep telling us. Sure, their jingoism came back to bite them in Benghazi, but at least the GM part is still true.

Oh, wait.
Workers at LG Chem, a $300 million lithium-ion battery plant heavily funded by taxpayers, tell Target 8 that they have so little work to do that they spend hours playing cards and board games, reading magazines or watching movies…

… Into Alleged Stimulus Wrongdoing

 

 

 ” The government’s chief spending watchdogs have already secured nearly 600 convictions and judgments against people and companies accused of misusing stimulus funds and have a whopping 1,900 investigations currently open into possible wrongdoing, officials say.

The wave of scrutiny more than three years after the American Recovery and Reinvestment Act was passed by Congress early in the Obama administration means the question of how money was managed early in the program is certain to extend well into the next year as many of the current investigations come to conclusion.

The Recovery Board charged with coordinating efforts among than inspectors generals at more than two dozen federal agencies that distributed stimulus money posted an item on its official blog last month claiming the total amount of money lost to fraud from the $840 billion stimulus program was a miniscule $11.1 million so far.

Vice President Joe Biden even made reference to the figure as he defended the stimulus program from attacks from Republican Rep. Paul Ryan during the vice presidential debate last Thursday. But that number only identifies money that is considered lost to fraud and does not include funds still under investigation or those recommended for reimbursement after audits identified misspending, officials said. “

Generational Debt

100 Percent FED Up

 

“Crony Socialism Is Still With Us”

” This much is clear: Democrats who controlled Congress and the White House used the $700
billion TARP program and the $860 billion stimulus as a giant ATM to pay back favored constituencies, at the expense of the rest of us.”

less than 2 percent of all federal spending

That’s some investment Barack .

” which includes not just spending on highways, but subsidies for Amtrak and Obama’s high-speed rail plans as well. ”

   It’s even less significant when you consider that it includes underwriting that perennial money loser Amtrak AND Obama’s pipedream highspeed to nowhere rail plans .

   Yes our Dear Leader has a fine grasp of economics and job creation .

No surprises here for those of us who have been paying attention . Just confirmation of what we’ve known all along .

  “TAMPA — More than 3 1/2 years after the president’s celebrated signing of the American Recovery and Reinvestment Act , the program
remains a hot target for critics, who
view the billions in federal spending as ripe for waste, fraud and abuse.

  And now, a new report is confirming that very fact, demonstrating how Florida played host to multiple tales of inefficient, unaccountable and, in some cases, lost stimulus dollars — millions
and counting. “

John Nolte

” A few weeks ago, the Washington Post and the Obama campaign worked together to attack Governor Mitt Romney with proven
lies about outsourcing. Though this attack has been exposed as a lie, that didn’t stop Barack Obama from continuing the attack, nor has it stopped his Media Palace Guards
from attempting to drag Romney into the trap of responding to these lies.
   Rather than make Obama pay a price for lying — which the media would do to a Republican — the media chose instead to try to pressure Romney into the no-
win debate of attempting to prove a
negative, which would’ve only hurt him more than the lies themselves. Polls now prove Romney made the correct decision. “

  ” You can tell that President Obama’s press conference statement Friday morning — “The PRIVATE SECTOR IS DOING FINE”— is a big problem for Democrats, the left, and much of the media simply because they’re spending so much time and energy denying that it is.”

Read this and visit the reason for the denial .

image

Blumer goes on

 
   ” Even on a percentage basis, it’s clear that the private sector, where employment is almost 4% lower than it was at peak employment, is still the biggest problem — or “drag,” if you will — of the bunch. Wait until you see what that means in terms of actual headcount: “

image

  Denial is all they can do at this point . This is a George H W Bush scanner moment . Of course the press wasn’t carrying Bush Sr’s water as with our dear Wile E but these kind of numbers cannot be ignored or buried on page 23 .

   Which leaves us , the producing , wealth creating , government subsidizing , taxpaying citizens about like this …

image

We realize that in the past we’ve portrayed our buddy Wile E as Obama , as we will continue to do , and that this time we used him as a metaphor for US .

Our apologies …

  We are thinking though , that the above picture could also represent  (hopefully) Obama and his chances come November …

   That’s a more pleasant reality to strive towards .

Thanks to PJmedia for the graphs and Tammy Bruce for Wile E Coyote

Larry Elder at Townhall

“President Barack Obama’s re-election turns on his ability to convince voters that 1) Obama inherited a “Great Recession,” 2) every “independent” economist supported the “stimulus,” 3) “bipartisan” economists agree that Obama’s stimulus worked, and 4) as actor Morgan Freeman puts it, racist Republicans say, “Screw the country … we’re going to do whatever we can to get this black man outta here” — nothing to do with deeply held policy differences.”

Here’s to hoping the snake oil salesman has lost his touch and the kool-aid is about gone .

   Fool me once …. Shame on you …. Fool me twice …. Shame on …. US

Jobs ? What Jobs ?

“The Keynesian government-spending model has proven a complete failure. It’s the Obama model. And it has produced such an anemic recovery that frankly, at 2 percent growth, we’re back on the front end of a potential recession. If anything goes wrong — like another blow-up in Europe — there’s no safety margin to stop a new recession.”

It Really Is A No-Brainer

  “The best stimulus is a smaller government.”

 

  I’m no economist , but is it really that difficult to grasp the fact that there is a finite supply of money and that the more that is spent , saved , invested by private citizens the more growth that is generated ? 

  I’m by no means ” the Smartest Person in the Room” but is easy for me to see that every dollar that gets spent by government is two dollars that the private sector is deprived of given government’s innate inefficiency .

From the WSJ

“President Obama, in speech after speech, proudly makes the following point: Although we inherited the worst recession since the Great Depression, we have generated net new jobs every month, and while we need to do more, we are going in the right direction.

Of course, recoveries always go in the right direction—that is, things get better over time. But merely going in the right direction is an incredibly low performance standard. Moreover, since deep recessions are generally followed by more robust recoveries, this should have been one of the strongest recoveries ever.”

  In order to facilitate growth one has to reduce taxes and regulation . Government spending our tax dollars (stimulus) does not spur private industry and when the stimulus primarily went to prop up union jobs ( democratic constituencies) it was bound to provide anemic or non-existent growth . How anemic you ask ? 

“Sadly, this recovery is near the bottom of all 11. Cumulative nonfarm job growth is just 1.9% 34 months into recovery, the ninth-worst performance and well below the average job growth of 6.5%. Cumulative GDP growth is just 6.8% 11 quarters into this recovery, less than half the average (15.2%) and the worst of all 11.”

 This is what you get when you have a leadership made up primarily of people that have no business experience and don’t have the first clue what it takes to create a job .

If the WashPost is calling you a liar and you sit on the left side of the aisle it must be a whopper . While stretching the truth is a time honored tradition in the world of the politician our present Dear Leader has managed to elevate  the art of calumny to heretofore unseen heights .

You must admit , he is master of something ….

HT/ Powerline

Kessler concluded:
“Calling out the Republicans at the Brent Spence bridge was bad enough, given the bipartisan support for its reconstruction. But pointing to the Sherman Milton Bridge, which already has been repaired without funding from the president’s jobs bill, is ridiculous.”

image

“So once again, Obama was simply lying. Sure, many politicians have been willing to stretch the truth to get re-elected. But for flat-out
misrepresentations, I can’t recall one who can equal Obama. “

Gee , you say the money went to who ? It was and is ALWAYS about cronyism and payback . Buying support with OPM is what progressivism is all about .

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