Jun 15 2011
President Obama had a good laugh on us this week – he joked about how clueless he was when he threw away a couple trillion dollars in liberal fantasy spending to fix our economic woes:
Remember “shovel-ready projects.”
Those were construction projects in the 2009 stimulus bill that were supposed to get moving right away — but jobs council members told Obama today that some got held up because of elaborate government regulations and permitting procedures.
“Shovel-ready was not as shovel-ready as we expected,” Obama said.
Ha, ha, ha … Funny – not!
Only the truly clueless did not realize government spending is a painfully slow, multi-year process. Here is what I predicted in February 2009, when the Spendulus Bill full of ‘shovel ready jobs’ was passed:
… there will be NO new jobs from the spendulous bill for at least a year. Since the bill is a spending bill and not a stimulus bill it will take the cumbersome federal government months (if not years) to just start the new projects. The proposal process alone will take 6-9 months, and then you have to plan, review plans, get the proper paperwork filled out, review designs, etc.
All this time between now and 2010 there will be no fix to the job market …
So why hasn’t the Spendulus bill programs kicked in and starting creating all these wonderful new jobs the Democrats in DC promised? Simple, they will not be activated for many months to come. As the CBO stated when the so called “Stimulus bill” was being rammed through Congress by the Democrats, the job creation elements cannot kick in for months:
In fact, I monitored the stimulus spending and how slowly it trickled down from the government coffers for months, using the governments own numbers. By February 2010 only 11% of the stimulus money budgeted had actually made it out the doors to create jobs. A year later and nearly 90% of the ‘stimulus’ was still stuck in the government’s bureaucratic mess.
The first graph is the annual [federal] debt – with an enormous spike in the two coming years from the spendulus bill (which will not add a single new job for about 12+ months). The 2nd chart is the Kool Aid chart. It assumes [federal] revenues will dramatically rise, even though all the policies are anti-economic growth. This is were fantasy meets reality.
If over the next 4 years the liberals screwed up, there will be no jump in revenues. No jump in revenues will mean that deficit spike will stay at historic highs for every year out to oblivion (which economically will be when Obama is up for re-election at the rate the dems are spending).
If, as is really happening, the consumers tighten their wallets and slow spending, and investors stay on the sideline and banks hold back lending, then the economy will continue to lag. As consumers hold back, more jobs will be lost and the price of land will continue to shrink as demand drops off and supply ramps up. As the economy lags the revenues will crash and not cover the spending.
These graphs are all rose colored to the extreme. They were developed by people drunk on liberal Kool-Aid.
The liberal democrats have gone ‘all in‘ on their belief government spending can direct a free market. It is their ‘come to Jesus’ moment. If they are right (and sadly for America they are not) then these wishful fantasies are about to come true. But if they are wrong (and the DOW says they are wrong) then revenues will drop and the deficits will balloon and the government will be seen (rightfully) as taking the money from a working economy and wasting it on liberal fantasies.
Here we are 2 years later and all this has come to pass. Next year we can pick up our shovels and kick these incompetents out of power, and begin the process of shrinking our bloated and useless government back down to its MINIMUM size.