"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi

Failure Of Dem Stimulus Clear As Dem Advantage On Job Creation Disappears

November 1st, 2010 by mopns · No Comments

The AP reported last week, “The job market and the economy will improve only slightly next year, according to an Associated Press survey of leading economists whose outlook for 2011 has dimmed over the past three months. The latest quarterly AP Economy Survey shows economists are pushing back their estimates of when key barometers of economic health — hiring, spending, expansion — will signal strength. In their view, shoppers and employers will stay cautious. Households will keep saving. Inflation will remain tame. And unemployment will dip only a bit from the current 9.6 percent rate to a still-high 9 percent at the end of 2011.”

Recall that when President Obama and Democrats were first selling their $814 billion stimulus bill, White House economists Christina Romer and Jared Bernstein said the “unemployment rate with … the recovery plan,” would not exceed eight percent. Yet the unemployment rate has been higher than 8% since February 2009, the very month Obama signed the stimulus bill. And unemployment has been stuck at 9.6% or higher since August of last year, according to the Bureau of Labor Statistics.

That’s not the only promise the stimulus has failed to live up to. Shortly after the bill was signed, Vice President Joe Biden boasted, “[T]his is about getting this out and spent in 18 months to create 3.5 million jobs and tee this up so the rest of the good work that’s being done here literally drop-kicks us out of this recession and we begin to grow again . . . .” Since then over 3.3 million jobs have been lost. And today’s AP story notes that economists forecast that “[t]he economy will expand just 2.7 percent next year, scarcely more than the tepid growth predicted for all of 2010. Under an economic rule of thumb, growth would have to average at least 5 percent for a whole year to lower the unemployment rate by 1 percentage point.”

Little wonder, then, that Americans no longer have a lot of confidence in Democrats’ economic solutions. According to The New York Times, a new NYT/CBS poll finds, “On the issue most driving the campaign, the economy, Republicans have erased the traditional advantage held by Democrats as the party seen as better able to create jobs; the parties are now even on that measure. By a wide margin, Republicans continue to be seen as the party better able to reduce the federal budget deficit.”

As Senate Republican Leader Mitch McConnell said after the release of the disappointing September jobs report, “[W]ith each passing month, and each new jobs report, it becomes increasingly clear that while massive Washington spending is growing the size of government, it’s clearly not growing sustainable private-sector jobs. The trillion-dollar stimulus didn’t live up to promises made by the Obama administration and Democrats in Congress; the massive growth of the federal government didn’t result in a similar growth of jobs; and the maze of new regulations, health care mandates and taxes are having a predictable impact on the economy. Again and again, Democrats were faced with a problem, and their solution was to ram through some costly, big-government solution Americans didn’t want.”

Many Americans seems to agree. According to the NYT, “In a follow-up interview, one poll respondent, Judy Berg, an independent from Morton Grove, Ill., said she voted for Mr. Obama in 2008 because she was ‘looking for a change,’ adding, ‘the change that ensued was not the change I was looking for but something totally out of left field.’”

Related:

Rasmussen Reports: Most Americans Say Tax Cuts Trump Increased Government Spending

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