Monday, June 1, 2009

Fuzzy Stimulus Math

In an attempt to justify Democrats’ massive $1 trillion “stimulus,” the Administration continues to exaggerate. The real numbers speak for themselves, and the truth about sluggish stimulus spending and increased job losses is apparent.

Fiction: When he signed the stimulus, President Obama said that the legislation “will create or save 3½ million jobs over the next two years.”

Reality: According to the Administration, $112 billion from the stimulus has been spent or obligated so far. Assuming that the President’s unsubstantiated claim that the legislation has saved 150,000 is correct, each job saved by the first $112 billion in stimulus spending cost $746,600. At that rate, the entire stimulus would “save” 1 million jobs—far less than the 1.6 million lost since the stimulus was signed.

Fiction: President Obama has stated repeatedly that the stimulus has already created 150,000 jobs.

Reality: The country has lost 1.6 million jobs since the stimulus was passed into law, and unemployment has increased from 8.1 percent in February to 8.9 percent in April.

Fiction: According to White House reports, about $45.6 billion of the stimulus has been spent and is helping struggling Americans.

Reality: The Administration is exaggerating the amount of stimulus money that has actually been spent. For instance, the White House reported on May 5, 2009, that the Department of Labor had made $11.5 billion in payments to the unemployment trust fund. It was later revealed that the Department had only been given $1.1 billion. In reality, about $36 billion of the stimulus has been spent—less than five percent of the stimulus.

Fiction: President Obama proclaimed that the stimulus is “what we need to do to create jobs for Americans scrambling in the wake of layoffs, to provide relief for families worried they won't be able to pay next month’s bills.”

Reality: According to analysis conducted by the Associated Press (AP), those Americans hardest hit by the economic downturn have received the least stimulus money. The AP stated that their study revealed that “States are planning to spend 50 percent more per person in areas with the lowest unemployment than in communities with the highest”

Fiction: The stimulus funds are being spent on hundreds of important projects, which are closely tracked and specifically reported by the White House.

Reality: The Administration has reported misleading and false information about how the stimulus money is being spent. In Vice President Biden’s report, “100 Days, 100 Projects,” the White House falsely claims that the very first project highlighted in the report had received $27 million for a public housing development in Washington, D.C. However, it was later revealed that the Administration’s report was false and the project had only received $59,000.

Bottom Line:

· The Democrats’ stimulus plan includes wasteful government spending that has not stimulated the economy.

· Despite the President’s claims, Americans have lost more than 1½ million jobs since the stimulus was passed and continue to lose thousands of jobs every day.

· The President is attempting to hide the wasteful and non-stimulative government spending.

· The White House is altering numbers, changing definitions and misleading Americans because the stimulus has wasted billions while Americans continue to lose jobs.

· While the stimulus has been a boon for federal agencies and bureaucrats, those Americans hit hardest by the recession are still suffering from the economy and worried about their families and their jobs.

· Republicans had a plan for fast acting tax relief that would have released the resources and creativity of the American people and created twice the jobs at half the cost of the Democrat stimulus.

Posted by: Press Secretary

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