Jun 10 2009

Obamanomics – Utter Failure – UPDATED!

Published by at 1:13 pm under Measuring The Recovery

Major Update: Here is a must read report from CBO telling the truth about the failed ‘stimulus’ experiment. A key finding:

ARRA included a number of greatly expanded or brand new programs, which slows spend-out.

Translation: the government is too damn slow and lethargic to stimulate the economy – therefore unemployment will continue to get worse and will not turn around for months. Check out the charts yourself, the stimulus will not be here until next year! – end update

Well, it is finally dawning on everyone that the liberal experiment on government stimulus of the economy is a rolling disaster. Even the AP has noticed and is beginning to see the light:

President Barack Obama assured the nation his recovery plan was on track Monday, scrambling to calm Americans unnerved by unemployment rates still persistently rising nearly four months after he signed the biggest economic stimulus in history.

Neither the acceleration nor the jobs goal are new. Both represent a White House repackaging of promises and projects to blunt criticism that the effects haven’t been worth the historic price tag. And the job estimate is so murky, it can never be verified.

Obama needs to stop cowering behind the ‘jobs saved’ BS and start living by the only measurable standard there is – job losses vs job creation. There is no metric for ‘jobs saved’. It is a fig leaf he uses to deny his failure.

For the first time, the administration admitted the economic forecasts it used to sell the stimulus were overly optimistic.

“At the time, our forecast seemed reasonable,” Vice President Joe Biden’s top economic adviser, Jared Bernstein, said Monday, explaining that the White House underestimated the scope of the recession. “Now, looking back, it was clearly too optimistic.”

By now, according to earlier White House economic models, the nation’s unemployment rate should be on the decline. The forecasts used to drum up support for the plan projected today’s unemployment would be about 8 percent. Instead, it sits at 9.4 percent, the highest in more than 25 years.

“Optimistic” is a euphemism for they were wrong. Why were they wrong? Well, the bloated federal government is as slow as a snail. So far less than 5% of the money is supposedly going to low paying, temporary, non-career sustaining make work programs. My tracking of 5 departments and one agency regarding their job creation efforts has it well below 1%, as the chart below shows for the period ending June 2, 2009:

The far left columns show the amount of stimulus money budgeted for these 6 government entities – that is the stimulus money meant to create jobs. The center columns represent the amount assigned to specific projects or programs; this is where the bloated bureaucracy has finally determined where and how to spend the money. The last set of columns on the right (which are basically flat lined) is the money heading out of the bureaucracy and being spent to create jobs.

The totals and percentages for the money budgeted, obligated and dispersed as of 6/2/09 are as follows:

  • $105,335,650,000 budgeted (~1/3rd total stimulus ‘jobs’ package)
  • $19.9 billion obligated (19% of the budgeted total)
  • ~$201 million dispersed to actual work (0.2%).

As of today over 99% of the job creating stimulus money in these organizations has not been spent! And it will not be spent for months. The only way to accelerate the money is to bypass the competitive bid process and limit the stimulus to the largest government contractors, bypassing the locales and small companies that need the stimulus:

Across the nation, local firms can expect to lose billions of economic stimulus dollars to large multinational corporations, thanks to a government contracting scheme that puts paperwork speed ahead of community recovery.

In Montana, that means qualified building firms are out of the loop, while many millions in federal construction funding will go to a California company that recently earned a stern rebuke for its failures in Iraq – a war-profits scandal that cost taxpayers hundreds of millions of dollars.

“It’s a farce,” said Dewey Swank of Kalispell’s Swank Enterprises. “It stinks of politics and big special interests.”

Please read the rest of the article – it is important because it shows the lie that is the great liberal economic experiment. The news is starting to get out, and my proposed solution (stop the stimulus spending and go to tried and proven tax cuts) is starting to take hold in the electorate:

Forty-five percent (45%) of Americans say the rest of the new government spending authorized in the $787-billion economic stimulus plan should now be canceled. A new Rasmussen Reports national telephone survey found that just 36% disagree and 20% are not sure.

According to news reports, only $36 billion of the stimulus plan had been spent as of late May.

The Liberals in DC have failed this nation. They naively thought the bloated and constipated federal bureaucracy could engineer a recovery. It was a lie, a fallacy, a mistake. It was a failure.

16 responses so far

16 Responses to “Obamanomics – Utter Failure – UPDATED!”

  1. WWS says:

    the 10 year bond auction went badly today. This thing is falling apart faster than even I thought it would.

    Big problem is that it’s now too late to turn back. At least this should kill any chances Obamacare might have had. Maybe if porkulus were repealed some of the damage could be undone, but THAT will never happen with this congress.

    Now cue up Guy Fawkes to explain once again why this is all George Bush’s fault.

  2. Alert1201 says:

    Can somebody explain in layman’s terms or point me to a site that explains the meaning of the bond auction? Does it mean that our economy is so bad that no body wants to lend us money in the form of purchasing bonds?

  3. jd watson says:

    You don’t get it and I didn’t until I recently read the book “New Deal or Raw Deal” by Burton Folsom, Jr.. In 1937, when the country was heading into another depression trough, FDR asked his friend, Treas. Sec. Morgenthau, for suggestions. When he suggested a series of tax cuts and reduced spending, FDR rejected these immediately, saying he was not going to emulate Coolidge, and that the primary considerations were not economic, but political. Obama is following FDR’s playbook exactly. The stimulus bill was never about economic stimulus, but POLICITCAL STIMULUS to establish the Democratic party as the dominate party for the next generation. The more chaos created, the more statist power they can seize. The more dependent people are on government largese, the more they are thralls of that governement.

  4. Toes192 says:

    Committee votes against directional drilling in ANWR
    McCain is sole Republican to oppose Murkowski…
    [Murkowski is our Senior Senator from Alaska]
    Oil at $70+ a little…
    http://www.adn.com/money/industries/oil/story/825252.html … Alaska Daily News
    Feel free to look upon [consider] the Obama View that wind and sun can power America as a [big] increase in your cost of living… [We had $5.oo per gallon gas for a couple of days in my little Alaska town… How did you do?]

  5. TomAnon says:


    Try, investopedia.com. Good online source. A bond is a way for an entity, mainly governmental, to finance deficit spending. They come in many flavors of long term and short term. The 10-year bond market (T-Bond) not going well means the Federal Govt. who is desirous of selling their debt to either refinance existing debt or create more debt will have to raise their interrest rates to attract buyers. This means that we as a country will owe more interrest on our debt. It also means that other rates will have rise as well because the US Federal Government is also a lender of money and you cannot lend money at a lower rate than you borrow or you self destruct. It is not a good thing.

  6. Alert1201 says:

    Thanks TomAnon. That was helpful. (I’m sure WWS is thankful as well:).

  7. GuyFawkes says:


    Seriously, are you running out of material? This is the third consecutive post about the economy where you’ve declared a “liberal failure”, because the economy hasn’t bounced back in 4 months. What’s the difference between this post, and “GOP Finally Declares Liberal Economic Experiment A Failure”?

    Yes, it’s true: the Bush Admin left this country’s economy in even worse shape that top economists thought just a few months ago. They thought unemployment would be around 8%, but they were wrong – it’s over 9 now.

    Here’s the key question: what, exactly, has Obama done that caused the unemployment to be even higher than predicted? Was a bad prediction the *cause* of higher unemployment? (Hint: no, of course not.)

    As far as I see it, you would have preferred Obama done one of two things:

    1) Nothing.

    2) Repeat the actions of the Bush Administration – which were responsible for getting us in this mess in the first place.

    Are you honestly saying that either of those would have been better for the country than attempting to simulate the economy?

  8. GuyFawkes says:

    And, if you think I’m wrong – fine, prove it.

    Walk through this chart, add up the numbers that came during Bush’s presidency, and then add up the numbers from Obama’s time in office.

    And then you tell me – was it really the “liberals” who failed us?

  9. kathie says:

    Bush left the economy in worse shape then Obama thought.

    My answer is that a man with a minimal intelligence would have discovered that before he pushed through a “stimulus” bill of $786 billion, a $33 billion child insurance bill, a $400 billion bill to keep the government running for a few months, another $100 billion supplemental with add ons, and continued on the course of medical care for all, and taxing everybody to eradicate CO2, as well as spend the second half of the TARP money. And then say oh my gosh, Bush made us do it. Oh, I for got, $50 billion for the car industry. What a load of crap! At some point, when will the man stand up and say I did it?

  10. KauaiBoy says:

    “Optimistic” is a euphemism for they were wrong. Why were they wrong?

    Simple—they don’t have a clue how to run a relay race let alone a government or a viable business. This administration could be the biggest collection of idiots ever assembled (to provide cover for the biggest idiot and least experienced of them all—bobo the liberals hero).

    As to the bond sale, another important factor is the expectation of inflation impacting interest rates and the current sale points to a view of higher inflation. Again very simple, you can’t print money without repercussions.

    And where is the beloved institution of American journalism in pointing out the lawbreaking that this administration is engaged in by handing over Chrysler to unions at the expense of secured creditors. This is more illegal than any alleged wiretaps or security measures enacted by the last real President in waging a war.

    The trolls are once again providing excellent cover but the light of day will disinfect them all.

  11. GuyFawkes says:

    “Simple—they don’t have a clue how to run a relay race let alone a government or a viable business. This administration could be the biggest collection of idiots ever assembled (to provide cover for the biggest idiot and least experienced of them all—bobo the liberals hero).”

    LOL. You actually can write that after the past 8 years???

    Gee – project much?

  12. GuyFawkes says:

    “My answer is that a man with a minimal intelligence would have discovered that before he pushed through a “stimulus” bill of $786 billion [….]”

    You could also say that a man with a minimal intelligence would have actually confirmed there the WMDs he was screaming about really did exist, before invading a country that posed no threat to us, and costing us about a $1 trillion.

  13. kathie says:

    Guy Fawkes. Your analogy is so completely bogus. If that is the best you can do, you need to just admit that Obama didn’t care that the economy was tanking, he knew it was tanking, and chose to do what he did not to save the economy but because he was about changing fundamentally the American way of life, just like he said he would do if he got into power. Given his background and his associates, what he is doing is exactly what I expected he would do. Obama has a fundamentally flawed soul. He is so bent with hatred for the America that has been he will do anything to squash it and grind it into the ground. Then he will befriend every dictatorship, tyrant, oppressed nation, to make up for what America has done to the world from it’s inception. That is Obama justice, that is Obama fair play, that is Obama’s vision. That is what Obama is all about in my opinion. Oh yes he will dress it up with words we are used to hearing, so we will think, no it couldn’t be so. But it will be, and he will, until somebody stops him. Like the Tea parties and more.

  14. KauaiBoy says:

    While it would be nice to educate the trolls, I have no delusions of grandeur so will be happy to simply amuse them.

    So I am to assume that BDS has actually made the current administration this stupid. I knew it was a real affliction but did hope it would pass like the swine flu.

    It is amazing how they act like they woke up the morning after election day and the sky was falling down all around them and they had to come up with a genius masterplan in one day. (Even God had 6 or 7.) They have had at least 8 years by some counts to formulate at least one workable strategy to any of the issues that the country would be facing when a new administration came into office, yet everything seems like “Let’s try this”. They passed a $1 trillion spending bill without reading it—-in most businesses that would get you convicted of gross negligence if not tarred and feathered by the stockholders.

    While Kathie makes a good point that bobo could be an evil genius, I would prefer to think he’s just the village idiot.

    Now get back under the bridge and change Uncle George’s diaper or at least get some up to date talking points; it is beginning to sound like old Osama* sound bites.

    * The guy bobo was supposed to capture if elected.

  15. penguin2 says:

    As JD Watson noted above, it was never about stimulating the economy. There aren’t any WPA projects going and won’t be. Only government bureaucratic jobs expansion. It was about politics. Expanding and consolidating political power. Creating a nanny state and controlling every aspect of people’s lives, that’s what radical leftists do. In that stimulus bill are loads of little bills that are slowly coming to light. Watch for a surprise regulation popping up every week or so. The Dems were quite sneaky. They had been working on that bill for months, years. All that was left was the final printing and a required signature. You got it. They do now own it, notwithstanding BDS to the contrary.

  16. Alert1201 says:

    You need to stop plucking your one string banjo. Your statement about Bush on WMD is as laughable as you stance on Obama’s economic policy.

    Bush was not screaming about WMD, the whole world was:

    Saddam’s goal … is to achieve the lifting of U.N. sanctions while retaining and enhancing Iraq’s weapons of mass destruction programs. We cannot, we must not and we will not let him succeed.” — Madeline Albright, 1998

    “[W]e urge you, after consulting with Congress, and consistent with the U.S. Constitution and laws, to take necessary actions (including, if appropriate, air and missile strikes on suspect Iraqi sites) to respond effectively to the threat posed by Iraq’s refusal to end its weapons of mass destruction programs.” — From a letter signed by Joe Lieberman, Dianne Feinstein, Barbara A. Milulski, Tom Daschle, & John Kerry among others on October 9, 1998

    “This December will mark three years since United Nations inspectors last visited Iraq. There is no doubt that since that time, Saddam Hussein has reinvigorated his weapons programs. Reports indicate that biological, chemical and nuclear programs continue apace and may be back to pre-Gulf War status. In addition, Saddam continues to refine delivery systems and is doubtless using the cover of a licit missile program to develop longer- range missiles that will threaten the United States and our allies.” — From a December 6, 2001 letter signed by Bob Graham, Joe Lieberman, Harold Ford, & Tom Lantos among others

    “(Saddam) will rebuild his arsenal of weapons of mass destruction and some day, some way, I am certain he will use that arsenal again, as he has 10 times since 1983” — National Security Adviser Sandy Berger, Feb 18, 1998

    “The community of nations may see more and more of the very kind of threat Iraq poses now: a rogue state with weapons of mass destruction, ready to use them or provide them to terrorists. If we fail to respond today, Saddam and all those who would follow in his footsteps will be emboldened tomorrow.” — Bill Clinton in 1998

    “Iraq is not the only nation in the world to possess weapons of mass destruction, but it is the only nation with a leader who has used them against his own people.” — Tom Daschle in 1998

    “As a member of the House Intelligence Committee, I am keenly aware that the proliferation of chemical and biological weapons is an issue of grave importance to all nations. Saddam Hussein has been engaged in the development of weapons of mass destruction technology which is a threat to countries in the region and he has made a mockery of the weapons inspection process.” — Nancy Pelosi, December 16, 1998

    “Even today, Iraq is not nearly disarmed. Based on highly credible intelligence, UNSCOM [the U.N. weapons inspectors] suspects that Iraq still has biological agents like anthrax, botulinum toxin, and clostridium perfringens in sufficient quantity to fill several dozen bombs and ballistic missile warheads, as well as the means to continue manufacturing these deadly agents. Iraq probably retains several tons of the highly toxic VX substance, as well as sarin nerve gas and mustard gas. This agent is stored in artillery shells, bombs, and ballistic missile warheads. And Iraq retains significant dual-use industrial infrastructure that can be used to rapidly reconstitute large-scale chemical weapons production.” — Ex-Un Weapons Inspector Scott Ritter in 1998

    “I am absolutely convinced that there are weapons…I saw evidence back in 1998 when we would see the inspectors being barred from gaining entry into a warehouse for three hours with trucks rolling up and then moving those trucks out.” — Clinton’s Secretary of Defense William Cohen in April of 2003

    “In the four years since the inspectors left, intelligence reports show that Saddam Hussein has worked to rebuild his chemical and biological weapons stock, his missile delivery capability, and his nuclear program. He has also given aid, comfort, and sanctuary to terrorists, including Al Qaeda members, though there is apparently no evidence of his involvement in the terrible events of September 11, 2001. It is clear, however, that if left unchecked, Saddam Hussein will continue to increase his capacity to wage biological and chemical warfare, and will keep trying to develop nuclear weapons. Should he succeed in that endeavor, he could alter the political and security landscape of the Middle East, which as we know all too well affects American security.” — Hillary Clinton, October 10, 2002

    “What is at stake is how to answer the potential threat Iraq represents with the risk of proliferation of WMD. Baghdad’s regime did use such weapons in the past. Today, a number of evidences may lead to think that, over the past four years, in the absence of international inspectors, this country has continued armament programs.” — Jacques Chirac, October 16, 2002

    You want more? This list goes on and on.