May 08 2009
Update: Ed Morrissey notes (H/T reader Darth Aggie) that the only reason the April numbers were not the 6th month of 600,000+ job losses is because 72,000 low paying, temporary census jobs hid the true toll of the lack of any federal stimulus. These few gains were offset by adjustments for previous months were more jobs were discovered lost. That means (averaging 500,000 per month over 6 months) those 72,000 low paying temp jobs are the only answer the Dems Â came up with after 3,000,000+ lost careers. I think the Dems deserve and F- for their utter failure to date.
Update: As expected, the unemployment rate jumped to 8.9%. 539,000 jobs lost this month, the lowest in 6 months but still a significant downward slide. As the ‘shovel ready’ stimulus job money remains stuck in the federal bureaucracy the American people continue to suffer. - end update
I am proud to announce that AJStrata has been deputized by the United States Congress to provide oversight and status on the stimulus program instituted in a hurried rush by the Democrat Congress and President Obama a long 3 months ago:
So just who’s tracking that $787 billion in taxpayer money that President Obama and the Democrat-led Congress are doling out? You are. Or you’re supposed to be, anyway.
“We are, in essence, deputizing the entire American citizenry to help with the oversight of this program,” said Rep. Brad Miller, chairman of the House Committee on Science and Technology’s subcommittee on investigations and oversight.
I am sure this great honor is in recognition of my efforts to date monitoring the flow of stimulus ‘shovel ready money’ into the hurting economy. The flurry of activity in early February (with the resultant lack of debate or analysis) was meant to flow federal funds into the economy to increase jobs for the American people. At the time the Democrats promised that the roughly $300 billion allocated to make-work efforts would create or save millions of jobs. In the chart below these job making efforts are contained within the Energy, Infrastructure-Science and State-Local Fiscal Relief areas of the stimulus bill.
For two months I have been tracking the progress of $105 billion in job creation money spread across 5 federal departments and one agency (NASA). This represents 1/3rd of the federal jobs program, and includes the two departments which received the lion’s share of the money (Dept of Energy and Dept of Transportation).
Now as a deputized agent for oversight on this critical recovery program I can report that the stimulus job creation program is an abysmal failure. The following graph (click to enlarge) shows the status for those 6 federal entities I have been tracking as of 4/28/09:
I have been tracking the flow of money (or lack of therein) from weekly status reports provided by the government organizations. The first set of columns show the amount budgeted to the 5 departments and NASA. The second set of columns shows how much money as been allocated (obligated) to actual projects or programs. The final columns (if they could be seen) show the money disbursed into the economy.
Nearly 3 months into the stimulus job creation effort the amount of money out the door verses allocated for these 6 entities is 0.03%:
- $105.336 billion as been budgeted
- So far $12.739 billion as been obligated (12.1%)
- Only $0.031 billion has gone into the economy
Tomorrow, when the April unemployment numbers come out (expected to rise to 8.9% or worse), I will update this post to show how the sluggish ‘stimulus’ job creation is not creating or saving any jobs – but actually prolonging the human suffering.
If the Democrats had gone with tax cuts the job situation would probably not be this bad and possibly recovering. It would definitely be recovering faster over time. The deal is tax money is ALREADY IN the economy. It is being held by companies (both for corporate and income taxes) in order to make payments throughout the year to Uncle Sam.
When the Feds cut taxes they allow that money that is being hoarded or siphoned out of the economy to stay in and be used for business investment or consumer spending. There is no delay in the money flowing into the economy because it was never pulled out in the first place. When the Feds spend to make jobs the money gets pulled out and just stagnates in government coffers until the lumbering bureaucracy can process it through their procurement and contracts process.
This was a fatal mistake by the Dems made: relying on a bloated and sluggish government to make jobs rapidly instead of private industry and consumers spending their money that would be normally going into taxes.
So, as a deputized agent of Congress I am here to report to the American People that President Obama and the Democrat led Congress have failed in their promise to create jobs. And my assessment is this failure will extend through the summer and well into the fall (if not longer). I will be here during that time, doing my civic duty, reporting on the progress (or lack of progress) of the stimulus job creation programs.