New Study Says Stimulus Destroyed More Jobs Than It Created
In February of 2009, President Barack Obama signed into law The American Recovery and Reinvestment Act (ARRA), or “stimulus,” as it has come to be known. Since then, it has become obvious that the spending binge was a colossal failure.
First off, President Obama and his administration said that if the stimulus bill was not passed that unemployment would rise above 8%. Well, good job Mr. President, because almost immediately after the stimulus was passed, unemployment jumped to 9% and then up to 10.6% in January of 2010. Currently the national average is 9%, still well above what we were promised.
If that isn’t proof enough, a study just released by economists Timothy Conley and Bill Dupor claims that the $800 billion dollar stimulus package actually hurt the job market more than it helped. From the study:
“Our benchmark results suggest that the ARRA created/saved approximately 450 thousand state and local government jobs and destroyed/forestalled roughly one million private sector jobs…This suggests the possibility that, in absence of the ARRA, many government workers (on average relatively well-educated) would have found private-sector employment had their jobs not been saved.”
We already knew that the vast majority of the jobs created by the stimulus were union or government jobs. The union jobs were mostly construction jobs and when the project ended, so did the job. Basically the stimulus was a giant “make-work” bill. The jobs were not sustainable – when the stimulus funds ran out, the jobs disappeared. While it catered to President Obama and the Democrat’s political allies, it failed to help the private sector.
The most disturbing part is that some liberal economists think the stimulus was too small. If you throw $800 billion into the economy just to see what sticks – and most of it slipped – why would you want to throw additional taxpayer dollars? This is the sort of thinking that has allowed this recession to drag on. President Obama needs to admit that the stimulus did not work and find ways to actually improve our economy in a lasting – not temporary – way.