May 08 2009

AJStrata Has Been “Deputized” By Congress! – Updated

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  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.

16 responses so far

16 Responses to “AJStrata Has Been “Deputized” By Congress! – Updated”

  1. kathie says:

    I read that in one state where they had a shovel ready project, worked for years to get it approved at a local level. Had to go through environmentalists etc. They applied for Fed funds to do the project. The Feds made them scrap all the work they had done and start over with new rules for the project. So much for speed!

  2. kathie says:

    Half of the $17 billion cut by Obama in new budget were in defense. But then they are going to hire 20,000 new employees to track contracts bid by defense. Well really they will track no bid contracts. So we cut airplanes and replace them with desk jockeys.
    Thank God we live in such a peaceful world!

  3. Terrye says:

    $17 billion. What a joke.

  4. kathie says:

    Obama gave reporters their talking points about the $17 billion……..and my bet is that they will comply.

    And he told journalists directly that they should stress the fact that the cuts are “significant” – a surprisingly direct appeal to reporters concerning which angle they should take in their coverage.

    “It is important, though, for all of you, as you’re writing up these stories, to recognize that $17 billion taken out of our discretionary, non-defense budget, as well as portions of our defense budget, are significant,” he said. “They mean something.” (Here’s the White House report on the cuts.)

  5. WWS says:

    Can I have my bullet now, Andy???

  6. Frogg says:

    Well, you better watch out, AJ. If you are going to go and criticize Obama’s stimulus package……he may “sick the White House press corp” on you! LOL

  7. TomAnon says:

    Ahh.. we have been Deputized by Congress.

    Just remember that the Matador holds a pretty Red Cape out for the Bull to charge and charge again. Then slips in the long blade….

    Congress and President is telling us where to look and what to look for.. Sounds like a Red Cape to me.

  8. kathie says:

    Job loses in public sector down, jobs created by government are up. Only 66,000 hired by census bureau in last month. Question for Obama, who pays the salary of government workers? I hope he knows!

  9. Redteam says:

    Hey, so I’ve also been ‘deputized’ by the evil congress.

    17 billion huh, Shepherd Smith said that’s like not having a pickle with one meal in one year. good analogy.

    Why does Obama want to improve employment, I thought his philosophy was that the govmint would take care of you, pay your mortgage, fill your tank…. why would anyone want to ‘work’?

    Depity Redteam on the job.

  10. I R A Darth Aggie says:

    Captain Ed @ Hot Air is reporting that the unemployment numbers are actually 611,000, but government hiring took in about 72,000.

    Temp jobs, of course, with the Census.

    But say, does this deputizing provide you any income? or is it an unfunded mandate?

  11. AJStrata says:

    Darth,

    This blog is not a money maker – that much is certain!

    When you see the graph for the last year you can see the trajectory for yourself. Hopefully I will have it up later today.

    Those 72,000 low pay jobs are supposed to heal the 3,000,000 plus lost over the last 6 months?

    I guess we are about to learn how gullible Americans truly are.

  12. MerlinOS2 says:

    Recovery.gov is ‘still not fully operational’ and wont be till late fall or next year according to the White House.

    Third parties are doing a much better job.

    There is a third party alternative just started up that is bringing on new features every day to track what is happening and they are doing much better than the people who have the data in house.

    They can be reached at recovery.org or recovery.com

  13. crosspatch says:

    The federal minimum wage is going to take a massive jump next month from, I think, $6.something to $8.something per hour. This will mean even less jobs. Hiking minimum wages during a deflating economy is NOT a good idea.

  14. MerlinOS2 says:

    http://www.dol.gov/esa/whd/flsa/

    The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

  15. Neo says:

    the ’shovel ready’ stimulus job money remains stuck in the federal bureaucracy

    As that small person and sometime economist, Robert Reich, sat on CNBC today calling for a second stimulus.

    One on the panel asked if this just wasn’t to grease the skids for the Congressional elections and he said that the mere “direction of the economy” would be enough to influence voters .. to which at least one person the one panel said that given that, there was no reason for another stimulus.

    Given the near collapse of the bonds sales yesterday, I can’t believe that anybody would be in favor of even more additional debt. They have even borrowed (most of) the “stimulus” money yet and rates are now going up.

  16. [...] is an update to my previous post discussing how the Obama- Democrat stimulus plan is not producing any new jobs. I have been [...]