The Failure of the Obama Stimulus by Gregory Hilton

The White House will hold an event tomorrow to “celebrate” the first anniversary of the $787 billion stimulus. They will say GDP grew 5.7% in the 4th quarter, but about half of that was due to inventory adjustments by companies. In the 3rd quarer, GDP grew 3.5%, but then this figure was quietly revised to 2.8%, and later to 2.2%. The real verdict comes from Sen. Evan Bayh (D-IN) who says Congress hasn’t created a single job.
The White House claims the stimulus has worked, and Vice President Biden has repeatedly said the economy is recovering. If things are going so well, why does Congress have to keep extending unemployment benefits over and over again? I really hope there is a “nascent recovery”, but the truth is that the Federal Reserve is keeping interest rates at all-time record lows because we have an extremely weak economy. The current economic models are not working, and Congress can’t create jobs. Jobs can only be created in the private sector. Congress can create an environment that is either friendly or hostile toward investment and job creation. They have done that, and the numbers tell the story of which they have created.


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