“Now, without relitigating the past, I’m absolutely convinced, and the vast majority of economists are convinced, that the steps we took in the Recovery Act saved millions of people their jobs or created a whole bunch of jobs,” Obama said yesterday during his press conference about the national debt issue. “And part of the evidence of that is as you see what happens with the Recovery Act phasing out.”
Obama was referring to the most recent jobs report which indicated the unemployment rate had grown to 9.2%
Setting aside for a moment the idea that taking money from some people (be it the taxes they’re paying now or the taxes they’ll pay in the future to pay down the debt of national borrowing) and giving it to other people could be economic stimulus (it’s like taking water from one side of the pool and pouring it in the other side and expecting the pool level to rise).
Even if we stipulate that what Obama is saying is true, that the unemployment rate is going up because the stimulus spending is drying up, what Obama is telling us at best is that the hundreds of billions of dollars in stimulus spending bought us just a couple of years of almost indiscernible economic recovery.
Put another way, it means that the hundreds of billions of dollars in “stimulus” deficit spending bought us temporary jobs, and temporary recovery (if you could call what has happened recovery).
Hope for change.