Not only did Obama say that – loss of jobs in the public sector is “evidence” of the stimulus working, but he also said the Recovery Act “created a whole bunch of jobs.” What kind of President gives a serious press conference and basically says I created “a whole bunch of jobs.” When he isn’t reading from the Presidential Teleprompter of the United States, it’s often painful to sensibilities.
“And part of the evidence of that is as you see what happens with the Recovery Act phasing out,” he said. “When I came into office and budgets were hemorrhaging at the state level, part of the Recovery Act was giving states help so they wouldn’t have to lay off teachers, police officers, firefighters. As we’ve seen that federal support for states diminish, you’ve seen the biggest job losses in the public sector–teachers, police officers, firefighters losing their jobs.”
You’ll recall that states were forced to take stimulus money. They lamented time after time, when the money runs out, the jobs will cease. As the president notes, they have. So the fact that the jobs didn’t end because of the stimulus, and were allowed to continue on for awhile, Obama sees that as a “created job,” and he sees “a whole bunch” of ’em.
This week as the 9.2% unemployment numbers hit the street, Obama pointed to the private sector jobs that have been created, and as he talked about the lost “public sector jobs,” he didn’t mention the huge swell of federal jobs. Washington, D.C. is booming, courtesy of Barack Obama.
Since the beginning of the last recession (December 2007) the private sector workforce has shrunk by 6.6% while shedding more than 7.5 million jobs. Over that same time period, the federal government workforce (excluding Census and Postal workers) has grown by 11.7% while adding 230,000 jobs.
This trend has continued throughout the Obama Administration. Since President Barack Obama was sworn into office, the private sector workforce has shrunk by 2.6% while shedding 2.9 million jobs while the federal workforce (excluding Census and Postal workers) has grown by 7% while adding more than 144,000 jobs. Source: The Foundry
Growth in Federal jobs matter, because…those jobs create nothing, absolutely nothing. The add nothing to the U.S. economy – they only take from it. Those jobs create bureaucracy and cost taxpayers their hard-earned dollars (if they’re lucky enough to be ‘earning.’) Another way of saying it, the private sector pays the public sector wages.
Each $1 increase in government spending reduces private-sector investment by between $0.46 and $0.97 after two years and $0.74 and $0.95 over five years. Government spending substitutes for private-sector investment; it does not supplement it. Increased government spending further reduces private-sector investment, making the problem of low job creation worse.
Moreover, government spending misdirects economic resources. Political priorities, not economic return, drive government spending. The desires of influential Members of Congress and political fads determine where government appropriations are allocated. This often differs greatly from the use that creates the most wealth and jobs. (Source: See The Foundry link above)
Politicians love federal jobs, and they particularly want them in their own districts where they grow their own personal little voter cabals.
So what can we say about a president who says job losses are evidence that his $830,000 Billion stimulus? We can say he is a scam artist, just as Hank Paulson was a scam artist when he thrust the economic collapse on Bush in his last days. Who would ever have believed America could be so naive?