Video: “The stimulus failed”

posted at 12:55 pm on June 7, 2010 by Ed Morrissey

Originally, I intended to just clip out the statement from Keynesian economist Jeffrey Sachs that “the stimulus failed,” which Joe Scarborough had to dig to get, but the entire segment is worth viewing. First, Sachs confirms — on MS-NBC, no less — that the Obama administration and Democrats in Congress had no strategy for long-term growth. The stimulus was a collection of short-term minor stimuli, combined with liberal hobby horses that Democrats had ridden for twenty years. Scarborough tries to defend Keynesianism from the Keynesians, but the failure can’t be separated from the philosophy:

Visit msnbc.com for breaking news, world news, and news about the economy

Heritage dissects the failure of the Porkulus package:

For objective observers the failure of President Obama’s $862 billion stimulus has become increasingly difficult to deny. But not for the White House. Last week, Vice President Joe Biden told Charlie Rose on PBS that the stimulus was “an absolute success.” Betraying a common perception about unemployment, Biden told Rose: “[W]e lost 8 million brand new jobs … since … 8 million brand new jobs since we hit the skids. On top of the 6% that were already unemployed. It took us several years to get there, it is going to take several years to get back to that number.” That is not quite true. In fact, the American economy has shed 55.4 million jobs since the recession began in the First Quarter of 2008. But at the same time the economy has only added 46.5 million jobs. Putting the two together produces the net approximate 8 million jobs lost that Biden referenced.

But isn’t net jobs all that really matters? Why should anyone care exactly how many jobs were lost and created since all that really matters is the net number of Americans who are no longer employed? Here’s why: despitean unemployment high of just 6.4%, more jobs were lost in the first seven quarters of the 2001 recession than were lost in the first seven quarters of this recession. How is that possible? How could job losses have been worse in 2001 but unemployment so much higher now? Weak job creation. The latest Bureau of Labor and Statistics data show that employers have created 8.6 million fewer new jobs this time around than they did almost a decade ago. Heritage Senior Labor Policy Analyst James Sherk estimates that lower job creation accounts for 65 percent of the recession’s decreased employment.

Our nation’s unemployment rate is hovering near 10% not because of record job losses, as Biden suggests, but because of record job non-creation. Private sector employers have gone on strike. Contrary to what the President’s economic wizards and New York Times columnists believe, massive government deficit spending does not stimulate job creation. President Obama does not have a secret vault of money he can just throw at the American people. The resources the government spends come from the economy. When the government increases spending, it crowds out the resources that business owners could have invested in their enterprises. Private investment falls sharply when government spending rises. According to Sherk, annual private fixed nonresidential investment has fallen by $327 billion since the recession started— a 19 percent drop. Less private investment means less hiring.

And then there is the rest of the Obama agenda that has created, and is creating, significant economic uncertainty: ObamacareEPA carbon regulationsfinancial regulations and impending tax hikes. Renouncing these policies, and canceling the rest of the stimulus, would do more to spur private sector job creation than anything this White House has done so far.

Scarborough gets it right when he says it’s all about the debt, and Porkulus just made our debt position even worse.  The spending from Democrats over the last three-plus years had also made it worse.  We’re approaching a debt level of 100% of GDP, and that portends disaster.

Sachs talks about improvisation in Obama’s Gulf strategy, but improvisation has been the rule all along.  No one knows what they’re doing in this White House; they’re just spitballing to see what sticks.


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Malinvestment of limited resources failed?

What are democrats going to do about that since gov’t spending is their only song?

Inanemergencydial on June 7, 2010 at 12:56 PM

conservative talk radio: ” we told you so.”

moonbatkiller on June 7, 2010 at 12:58 PM

Or did it work…as planned?

Electrongod on June 7, 2010 at 12:58 PM

Real news OT here:

Helen resigned.

AnninCA on June 7, 2010 at 12:59 PM

Photo summarizing the results of the stimulus bill: http://optoons.blogspot.com/2010/05/your-stimulus-money-at-work.html

Mervis Winter on June 7, 2010 at 12:59 PM

OK, I knew this was coming but it seems to have arrived but so many are still blissfully unaware that we’ve reached the end.

I was always worried but should I be officially scared?

Yakko77 on June 7, 2010 at 12:59 PM

Post Bush: all the stimulus produced was payback for those that got the most incompetent politician elected. It had nothing to do with getting Americans back to work.

jbh45 on June 7, 2010 at 1:00 PM

Apparently, government moving money from their right pants pocket to their left pants pocket doesn’t make the nation any richer.

RBMN on June 7, 2010 at 1:00 PM

At least the sex drive of coeds at Syracuse was fully researched with a Porkulus grant.

Spoiler alert: it’s because they’re horny.

Chuck Schick on June 7, 2010 at 1:00 PM

No one knows what they’re doing in this White House; they’re just spitballing to see what sticks.

I decided long ago that they do, indeed, know what they’re doing.

BowHuntingTexas on June 7, 2010 at 1:03 PM

Biden just stated that “the stimulus is an absolute success” last week. Surely the Vice President wouldn’t deliberately lie would he? Maybe he was just being “Joe”.

volsense on June 7, 2010 at 1:04 PM

Sach’s grasp of the obvious is astounding!

GFW on June 7, 2010 at 1:05 PM

The stimulus worked exactly as planned – bankrupting the nation.

Rebar on June 7, 2010 at 1:05 PM

Keynesian economics has always been a failure. File this under ‘old news’.

Vashta.Nerada on June 7, 2010 at 1:07 PM

Isn’t Biden the same idiot who said we have to spend money to avoid going bankrupt?

Biden is knowledgeable about economics in the same way that Barry “we’ll give the terrorists a fair trial and then we’ll execute them” Obama is a constitutional law expert.

AZCoyote on June 7, 2010 at 1:07 PM

No one knows what they’re doing in this White House

And that’s a shock to who? The idiots who supported ‘the man with no resume’? He and his handpicked flock of ‘we know everything about everything’? People who’ve never held a position where they had to create something or meet a payroll? Those people?

GarandFan on June 7, 2010 at 1:07 PM

If this keeps up on msdnc the fall campaigns are almost over.

tim c on June 7, 2010 at 1:08 PM

No one knows what they’re doing in this White House; they’re just spitballing to see what sticks

they will fallback to blaming bush no doubt…

cmsinaz on June 7, 2010 at 1:08 PM

This is the Era of the Super Genius

beatcanvas on June 7, 2010 at 1:09 PM

Falling out of love is so sad.

epluribusunum on June 7, 2010 at 1:09 PM

SMART Power!!!!!!!!!11111111111111111!!!!!!!!!eleventy

jukin on June 7, 2010 at 1:13 PM

I honestly beleive that Obama, Reid and Pelosi thought the stimulus would work. Tons of people told them it would in fact be the correct thing to do. Heck they even had charts and powerpoints made that said unemployment would never go above 8% if this bill got passed. Deep down they knew it would work because they thought, OK, this time we know what we are doing, and we are going to do it right.

The problem was, they wanted socialism/nanny statism to work so bad, they fell into the trap the guys with the charts and powerpoint presentations made for them, and they would not listen to anyone else. And we are nearly One Trillion dollars poorer for it. The money that has been spent has largely been wasted and used to extend the problem further down the road. Wait until next year when the states don’t have that money to paper over the gaps in their budgets. Ugly.

Johnnyreb on June 7, 2010 at 1:15 PM

Duh.

Leonidas Hoplite on June 7, 2010 at 1:17 PM

No one knows what they’re doing in this White House

Yes they do. They’re throwing parties, going on vacations and having tantrums when things don’t suit them….. all those stupid, little people who criticize drive them crazy.

This administration wouldn’t improve even if they got rid of the teenagers who write Zippy’s speeches.

Cody1991 on June 7, 2010 at 1:17 PM

The spending from Democrats over the last three-plus years had also made it worse. We’re approaching a debt level of 100% of GDP, and that portends disaster.

And they’re all rubbing their mitts together, waiting anxiously for the disaster to ensue.

Meanwhile, Obama poses for several snapshots, so they choose which one to use on the new currency!

capejasmine on June 7, 2010 at 1:18 PM

Well if you ask any democrat, they’ll tell you it’s because we didn’t spend enough and we need to spend more. Isn’t Mr. President considering a new stimulus? It’s like saying there isn’t enough oil in the gulf, open up another leak!

scalleywag on June 7, 2010 at 1:20 PM

No one knows what they’re doing in this White House; they’re just spitballing to see what sticks.

“Present”

visions on June 7, 2010 at 1:21 PM

Meanwhile, Obama poses for several snapshots, so they choose which one to use on the new currency!

capejasmine on June 7, 2010 at 1:18 PM

Will he ever figure out that it’s as worthless as he is?

Cody1991 on June 7, 2010 at 1:23 PM

honestly beleive that Obama, Reid and Pelosi thought the stimulus would work

The missing piece is really an overview. Supporting the unions is NOT the same as support American business.

That’s the blind spot.

AnninCA on June 7, 2010 at 1:23 PM

Here is my man Hugh Hendry smacking down academic elitist Sachs.

DFCtomm on June 7, 2010 at 1:23 PM

“We are spending more money than we have ever spent before and it does not work. I want to see this country prosperous. I want to see people get a job. We have never made good on our promises. I say after eight years of this administration we have just as much unemployment as when we started and an enormous debt to boot.” - Henry Morgenthau, Secretary of the Treasury, May 1939

RadClown on June 7, 2010 at 1:25 PM

I still think this whole stimulus thing was mainly so the Democrats could have enough campaign funds to trounce all challengers in future elections. I see no reason at all to think the stimulus was about helping the economy in any way whatsoever.

Aitch748 on June 7, 2010 at 1:27 PM

The Uh-Dolts are in charge.

Good Lt on June 7, 2010 at 1:28 PM

The only thing being stimulated is the Tea Party movement:

20,000 AMERICANS attend WEEKEND RALLIES: LA, NYC, Phoenix and San Diego

These events covered a wide-range of topics — incluing immigration and opposition to a WTC-adjacent mosque.

Mutnodjmet on June 7, 2010 at 1:33 PM

We’re approaching a debt level of 100% of GDP, and that portends disaster.

Is that a guarantee?

ernesto on June 7, 2010 at 1:37 PM

Mutnodjmet on June 7, 2010 at 1:33 PM

Wow a whole 20,000 in 4 cities! I think Sao Paolo got 3million+ for gay pride.

ernesto on June 7, 2010 at 1:37 PM

Joe S is a real jackaxx, he didn a great deal to lend an assist to Clyburne that race bating frakker in throwing the race card at Bill Clinton.

Mika is an Obamaloving nitwit, the spawn of Zbeig, couldnt expect too much from her lol

ginaswo on June 7, 2010 at 1:37 PM

When the GOP gains power, they will do nothing to fix the budget, yet they will do just enough to ensure that Obama stays in office for 4 more years.

faraway on June 7, 2010 at 1:37 PM

mut-
our Phoenix rally this weekend was a PRO SB 1070 rally :0)

our economy may recover just off the spending of the pro and anti SB1070 rallies, lol

ginaswo on June 7, 2010 at 1:39 PM

dont listen to the eeyores

Axelrasputin probably called out his Cheeto loving Comment posting brigades again,

sure sign of desperation, lol

ginaswo on June 7, 2010 at 1:39 PM

remember all the Cheeto eaters are out of school now and since they have NO HOPE for a REAL job in the Obamaconomy they have more time to sit in Moms basement posting proObama anti Tea Party rants, lol

ginaswo on June 7, 2010 at 1:40 PM

No one knows what they’re doing in this White House; they’re just spitballing to see what sticks.

So maybe Obama really is the new FDR… “Spitballing to see what sticks” is a pretty good description of how a sharp recession dragged out into a 10-year depression … in the 1930s.

tom on June 7, 2010 at 1:41 PM

Video: “The stimulus failed” “B!tchslapped By Reality”

Roc on June 7, 2010 at 1:43 PM

Wow a whole 20,000 in 4 cities! I think Sao Paolo got 3million+ for gay pride.

ernesto on June 7, 2010 at 1:37 PM

The tea party is an iceberg. It’s bulk is hidden, because these are the type of people who never wanted to be involved in politics or go to rallies. They have jobs, families, and real lives to attend, so don’t expect to see massive turnouts. That’s why it has such a strong local component. You can get the family together to head into town for the evening much easier than you can get them ready to head to D.C. for a rally.

DFCtomm on June 7, 2010 at 1:44 PM

President Obama does not have a secret vault of money he can just throw at the American people.

Sure he does.

taznar on June 7, 2010 at 1:45 PM

Now the real puzzle is why Obama’s approval stays around 47. The last few weeks should have put him forever in the low twenties!

Is there so much racial guilt that no matter what he does people can’t bring themselves to admit he is an utter failure?

It is too bad, the first black President is such a dunce. But the truth is the truth. People need to face it and we need to figure out how to mitigate the damage as much as we can until the next election.

Until the country really faces Obama’s failure we can’t get a consensus to ignore him.

petunia on June 7, 2010 at 1:46 PM

DFCtomm on June 7, 2010 at 1:23 PM

I agree with Sachs. He wasn’t defending the spending, he was calling for austerity programs for Greece, Britain and the US. Calling for sovereign debt default is ridiculous without first trying real spending cuts. Also calling for 20% tier 1 capital ratios in commercial banks is crazy. All lending would cease. Traditional regulatory requirements are 4%.

Ted Torgerson on June 7, 2010 at 1:48 PM

I still think this whole stimulus thing was mainly so the Democrats could have enough campaign funds to trounce all challengers in future elections. I see no reason at all to think the stimulus was about helping the economy in any way whatsoever.

Aitch748 on June 7, 2010 at 1:27 PM

Indeed, isn’t much of the spending backloaded? That is to say, I think they’ve set aside as much as half to continue floating it to Dem constituencies–which largely rely on taxpayer dollars–through the next 2010 and 2012. Keeping the base fed, while demonizing the GOP in the eyes of swing voters, seems to be their strategy. The hope is to shackle the country with Obamacare, cap-and-trade, card-check, and such, and we’ll be on the one-way road to European mediocrity.

BuckeyeSam on June 7, 2010 at 1:49 PM

mut-
our Phoenix rally this weekend was a PRO SB 1070 rally :0)

our economy may recover just off the spending of the pro and anti SB1070 rallies, lol

ginaswo on June 7, 2010 at 1:39 PM

Jan Brewer’s stimulus! How much do out of staters spend? Cuz that Penny more in sales tax is more helpful if it comes from out of state.

I can not believe that I am paying 9.3 sales tax in Phoenix! Everytime I see the reciept I want to scream!

petunia on June 7, 2010 at 1:50 PM

Look at Mika’s face during the entire discussion..she looks like she wants to hurl! All the Dems do..Gee thanks Nancy, Harry and gang! How does Crow taste?

silvercreeklady on June 7, 2010 at 1:50 PM

Ted Torgerson on June 7, 2010 at 1:48 PM

I agree with Hendry, and “I recommend you panic”.

DFCtomm on June 7, 2010 at 1:50 PM

This is so self-evident to me that it’s astonishing that the president and the Democrat’s either don’t get it, or don’t care.

Shows that an Ive League education coupled with an utter lack of real-world experience, is totally worthless.

No one is going to hire with a far-left president and Congress in place. Because successful businessmen have real world experience.

You don’t become successful in business because you give nice speeches, because you have an interesting story and because the media likes you.

You become successful can you can produce a product that people like and are willing to pay for, unlike Barack Obama.

NoDonkey on June 7, 2010 at 1:51 PM

I don’t know one can say that the stimulus didn’t work out the way the Obama Administration and Congressional Democrats planned…if their goal was to dump billions into the economy prior to the November elections and allow their media and other sycophants (including sheeple/ostriches) to go along with their agenda thereby paving the way for additional years of control, then I’d say that it still might work. They’ve gained huge control in just a few years. Maybe they just planned on keeping the system afloat long enough to push through as many of their Socialist items as possible?

It could be that, and it could also include that they knew the system would crash anyway. Better to have it crash only after they put enough of their people into key positions, changed enough bureaucratic rules and passed enough legislation. Then a later crash would allow them to use these powers in order to actually gain more behind the facade of “maintaining order”, “protecting the American people” and the like.

Also, the comment made on the video about these bailed-out companies “paying back” the TARP money-paid it back to whom exactly? To us? No. Towards the deficit? No. Also, at least CitiGroup continues to keep their tax breaks:

http://www.nytimes.com/2009/12/16/business/16citi.html

Dr. ZhivBlago on June 7, 2010 at 1:53 PM

So maybe Obama really is the new FDR… “Spitballing to see what sticks” is a pretty good description of how a sharp recession dragged out into a 10-year depression … in the 1930s.
tom on June 7, 2010 at 1:41 PM

People say that WW2 pulled America out of the First Great Depression. Bullsh!t. What really ended the First Great Depression was the death of America’s first king for life.

No one wrecks a country and creates a dictatorship, just so he can walk away and let someone else take over. Mark my words: Obama has no intention of ever abdicating his throne.

logis on June 7, 2010 at 1:57 PM

Is that a guarantee?

ernesto on June 7, 2010 at 1:37 PM

CBO reported in March that PUBLIC debt (so not even including all the raiding of SS/Medicare) will go from 7.5T in 2009 to 20.3T in 2020 under Obama’s budget.

Please defend that.

Chuck Schick on June 7, 2010 at 2:00 PM

despitean unemployment high of just 6.4%, more jobs were lost in the first seven quarters of the 2001 recession than were lost in the first seven quarters of this recession. How is that possible? How could job losses have been worse in 2001 but unemployment so much higher now? Weak job creation.

Kinda ironic that the Bush tax cuts were what spurred job growth and kept us from a deeper recession, yet now our clueless leader wants to ‘roll back’ the Bush Tax cuts in the middle of the Obama Depression.

cntrlfrk on June 7, 2010 at 2:00 PM

Now the real puzzle is why Obama’s approval stays around 47. The last few weeks should have put him forever in the low twenties!
petunia on June 7, 2010 at 1:46 PM

I saw a poll a while back where around 18% of the population believe the stimulus is working (they probably always will) and about 30% of people were “willing to give it a few more months” to see if it works. Add them together and you get almost exactly the same as Obama’s approval rating.

Obama’s popularity is being buoyed by the biggest economic juggling act, combined with the most sophisticated propaganda campaign, in world history. When this house of cards finally falls down, it’s going to fall HARD.

logis on June 7, 2010 at 2:05 PM

Is that a guarantee?

ernesto on June 7, 2010 at 1:37 PM

As much as I hate to say it… just about.

The reason for this is simple: All that debt has to be serviced. The larger the debt, the more interest we have to pay on it. The larger the interest we have to pay on it, the more we have to take out of the economy on a year by year basis to pay it.

The more we have to take out of the economy on a year by year basis, the slower the economy grows. Herein lies the rub. If economic growth is slower than population growth than you can kiss any chance of seeing unemployment go down good bye.

If we maintain the welfare state model, that means more and more unemployment funds will be stretched to the limit. I’m not even going to talk about the entitlements (Social Security, Medicare, Medicaid) which are already effectively bankrupt and will soon become nominally so.

There’s a few things that can fix this, but we’d have to put together austerity measures: spend less money. Cut back on the entitlements. Cut down on the size of government drastically. And while we’re at it, let the private sector do it’s thing: grow. Let’s get out of it’s way and let it do it’s job.

They tried doing that in Greece, but the public sector unions and welfare addicts got in the way. Greece is hosed, and quite possibly so is the rest of Europe.

It’s a guarantee only if government keeps doing what it’s doing. Government became the 1000 lb gorilla in the room because it’s spending the most money by far. Unless it scales back, no amount of scaling back by the private sector will make up for it.

Chaz706 on June 7, 2010 at 2:08 PM

Obama administration and Democrats in Congress had no strategy for long-term growth

That was apparent from the get-go. They knew this, we knew this, and they knew that we knew this….yet they lied to us anyway, and proceeded with this folly.

ted c on June 7, 2010 at 2:11 PM

I concur with Dr ZhivBlago. I have every expectation that a fat chunk of the still-withheld stimulus funds will make their way into very useful hands in time to aid Democrats in fall elections.

If you’ve got any political know-nothings among your family or colleagues who are voting this fall, repeat after me: Friends don’t let friends get bought by Democrats.

Edouard on June 7, 2010 at 2:13 PM

Our nation’s unemployment rate is hovering near 10% not because of record job losses, as Biden suggests, but because of record job non-creation. Private sector employers have gone on strike.

Yes, and if Democrats keep on with the Nutzi idea of punishing achievement that’s not going to change – but maybe that’s been the whole plan all along.

Chip on June 7, 2010 at 2:27 PM

The Stimulus did not fail.

It was successful, wildly successful.

You just aren’t recognizing the real purpose of the Stimulus in the first place.

Its purpose wasn’t to rescue or re-start the American economy. Its purpose was to transfer wealth to the pockets of the Political Class, and to reward labor unions; the unions range from blue collar, stick and brick unions to public employee, white collar unions. Those unions, or at least the heads of those unions, can be relied on to kick back a substantial share of their largesse to the Political Class.

The Stimulus worked just as it was intended to. It was not a failure.

Labamigo on June 7, 2010 at 2:39 PM

Or did it work…as planned?

Electrongod on June 7, 2010 at 12:58 PM

As planned…. almost,ike in skeet shooting, timing is everything. The repercussions of of their policies are becoming apparent earlier than they anticipated. Just as the implentation of HCR was not kick in till after the 10&12 elections, much of their econ policies are deliberately meant to artificially boost this years numbers. To see how this years are inflated check out WSJ here,

http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html?mod=rss_opinion_main

The same with the housing market and the 1st time home-buyers credit, these policies are meant to have two-fold effects, one- create the appearence that the economy is rebounding before the crucial 10&12 elections so that the Dhims can take adevantage of…2- when the resultant exacerbated deflation of these markets occurs, it conveniently sets off another crisis that can’t be wasted. We’re talking Dow below 8000, negative GDP of 2+%,spiraling interest rates, surge in mortgage defaults and foreclosures, State and muni bonds not selling and defaults by those entities creating an enviroment for the Feds as the only ones who can print money to step in and take control.

The above scenario sets the stage to coalesce all power in Washington, who then apportion out the only way to support your family through a job market that is unionized top to bottom.

This explains in part the cooperation of the fortune 500 Co’s and Team Obama, as the policies set forth put the smaller players out of biz and consolidates market share amongst the heavies, which in exchange for monopolization of the market submits to enforced unionization. With these Corp’s & unions creating the only class of peoples able to adequately, feed, clothe, house and educate their families(as degrees/indoctrinization will the ONLY ticket into the work force, this further consolidates political power. Thus they create miiror image of 1984 of powerless proles and a subservient bureaucratic class who cooperates under the threat of losing their perks.

This is the dystopian path upon which we are embarked, only through the power to subpeona in congress can this be subverted. There-in lay the premise for having the house of cards only take place after the crucial 10&12 elections. After which through their collaboration of Corp’s, unions, Gov’t holding the means of employment, and there fore political contributions of enforced union dues, they eliminate the possibility of political opposition by cornering access to finances.

This their ticket to one party rule in all layers of Gov’t from which they will face no opposition to devolving our sovreignity to extra-national bodies like the UN, IMF, WHO, and so on. All of which bodies will of course fall under unionization as per Andy Sterns self stated plans.

We have a year and half to secure liberty, after which the descent into a hellish vision of Orwell meets Rand becomes a near inevitability.

Archimedes on June 7, 2010 at 2:44 PM

Hugh Hendry and Sach go at it.

http://www.youtube.com/watch?v=nuysYXlJ43I&feature=related

Octavia on June 7, 2010 at 2:46 PM

I don’t know why everybody is freaking, Apple just unveiled the iPhone4!!

Recovery!

cntrlfrk on June 7, 2010 at 2:49 PM

ernesto on June 7, 2010 at 1:37 PM

I see you are blowing hot air on that wind generator to power your Ipad.

chemman on June 7, 2010 at 2:57 PM

Holy crap! I have cops all over, thers a jumper on the 35th floor across the street!

Archimedes on June 7, 2010 at 3:01 PM

The guy’s still hanging from his balcony in his boxers,… wait, a cheer just rang out from the street below. I don’t see him anymore, apparently they’ve coaxed him back in.

Whatever his issues I’m glad of that, but as the financial situation becomes inevitabvly more dire in resoponse to the statist takeover, I fear such recourses will become more common.

Archimedes on June 7, 2010 at 3:35 PM

Yep, they’ve pulled from the ledge and he’s being carted away in an ambulance, for a psychiatric eval no doubt. Anyhow in all the hubub, I forgot to paste the relevent link to Andy Stern’s Internationalist plans, here goes…

http://www.youtube.com/watch?v=WzG0xpkjWrA

Archimedes on June 7, 2010 at 3:39 PM

TARP I could see, but the stimulus, that seemed like a boondogle from the word Go.

$700,000,000,000.00 worth

Paul-Cincy on June 7, 2010 at 3:46 PM

What DOES happen when the debt situation becomes unsustainable? Inflation? Depression? Corruption? Cronyism? And then on the count of 3 we all begin wiping our asses with the Constitution? I’m ready. Let’s go. Whatever it is, let’s do it.

Paul-Cincy on June 7, 2010 at 3:50 PM

Its purpose wasn’t to rescue or re-start the American economy. Its purpose was to transfer wealth to the pockets of the Political Class…

The Stimulus worked just as it was intended to. It was not a failure.

Labamigo on June 7, 2010 at 2:39 PM

Well said. It should have been suspicious from the get go hearing a bunch of Liberals saying that the Stimulus/TARP was going to somehow “trickle down” to the masses.

Like I’ve said before, the Marxists are not afraid of money nor of owning it. They feel they deserve it for the great work they do on behalf of the Proletariat. They simply think that they squeeze enough out of the fat cats to keep the Proles happy…and subservient…for their own good.\

Giving the Commies the greatest amount of leeway possible, one could argue that they know that Capitalism cannot go on forever, that wealth and resources are not infinite. They smell a power vacuum forming not only in the political and social arenas, but certainly in the economic ones as well. Because they can see this, they feel they are uber-intelligent, enlightened visionaries who are the best ones to pick up the pieces when it all falls apart-because they say they are.

Marx himself may have been poor by choice, but his buddy Engels was not. The guerrillas fighting in the jungles are but one weapon of the Communists. Long ago they figured out that money was a far more effective weapon, and besides, few of them want to be living in a shelter half in the jungles themselves and maybe even get shot.

Dr. ZhivBlago on June 7, 2010 at 4:05 PM

… as the financial situation becomes inevitabvly more dire in resoponse to the statist takeover, I fear such recourses will become more common.

Archimedes on June 7, 2010 at 3:35 PM

Makes me think of that song that was supposedly banned from the airwaves during the Depression (“Sunday, gloomy Sunday…“)

Last week, Vice President Joe Biden told Charlie Rose on PBS that the stimulus was “an absolute success.”

FU, VP JB. I have bankrupt friends and friends on food stamps. Smart people, with college degrees in technical fields, who were once productive citizens with jobs.

Mary in LA on June 7, 2010 at 4:11 PM

What DOES happen when the debt situation becomes unsustainable? Inflation? Depression? Corruption? Cronyism? And then on the count of 3 we all begin wiping our asses with the Constitution? I’m ready. Let’s go. Whatever it is, let’s do it.

Paul-Cincy on June 7, 2010 at 3:50 PM

Nobody knows for sure, because there has never been a nation like the U.S., we have reserve currency status and unless we screw up the currency then as the world crumbles the dollar will look better and better. It’s safe to say that our borrowing will go on longer than other nations.

When people lose faith in governments ability to pay, then the bond markets will dry up, and if they are stupid, then they may choose to print money. I think the way it will happen will be a deflationary cycle followed by an inflationary cycle, and maybe even hyper inflation.

DFCtomm on June 7, 2010 at 4:28 PM

Debrahlee Lorenzana: Too sexy to work at Citibank?

Helen Thomas too ”” to sit in the white House Press Corpse?

2 more unemployed.

seven on June 7, 2010 at 4:31 PM

Ed, you missed Joe’s defense of Helen Thomas.

It was the old she is senile gambit. Completely ignoring Helen’s long held pro-arab positions.

jpmn on June 7, 2010 at 4:35 PM

Pelosi never looked at stimulus to be anything except a word to be used to sell the idea of deficit spending. The bulk of the “not so much” stimulus was given to unions, state and local government and, whenever possible, the twofer of public employee unions. It was political payback and showed zero interest in the fate of the country.

Anyone who believed the term “shovel ready” referred to projects that actually existed had to be a Democrat who still believes in the tooth fairy.

RickCaird on June 7, 2010 at 4:54 PM

Unfortunately, it doesn’t matter to them whether it works or not. What matters is that the right people get to make all the decisions. To the left, economic policy is an article of faith, not an exercise in empiricism. If putting the Right People in place and giving them power over everything They morally should control results in the end of the world, so be it. This would simply mean the end of the world was meant to be.

Blacklake on June 7, 2010 at 5:05 PM

Ford said TARP has been paid back. I thought it was only shuffled around to look like it was paid back. Any HAers got more info on that?

itsnotaboutme on June 7, 2010 at 5:22 PM

Ford said TARP has been paid back. I thought it was only shuffled around to look like it was paid back. Any HAers got more info on that?

itsnotaboutme on June 7, 2010 at 5:22 PM

As far as I know it’s actually been paid back, but it’s basically been paid back with the FED printing press.

DFCtomm on June 7, 2010 at 5:33 PM

Even Keynes would roll over in his grave at this porkfest. His idea was that government would deploy surplus revenue during the weak years to minimize the impact of downturns. Washington has instead decided to do the equivalent of maxing out the credit cards to buy plasma screens and iPhones for the whole family, as well as throw one big-ass party for themselves.

That being said, Keynes made two fatal assumptions; that government had the ability to hold on to surpluses, and that it had the foresight to deploy those funds to the “right” areas of the economy.

You can also argue that, outside of assuming government had that kind of fiscal discipline with tax revenue (it never does), that downturns would be quicker, sharper, and recoveries more robust if government would just stay the hell out of the way of the market.

So really, I guess it’s a roundabout way of saying Keynes was an idiot.

TheMightyMonarch on June 7, 2010 at 9:22 PM

Ford said TARP has been paid back. I thought it was only shuffled around to look like it was paid back. Any HAers got more info on that?

itsnotaboutme on June 7, 2010 at 5:22 PM

It really doesn’t matter as the Fed is buying back Treasury debt from the Primary Dealers (who are there to prevent a bond market dislocation), which amounts to indirect monetization. The snake eating its own tail…this should end wonderfully.

TheMightyMonarch on June 7, 2010 at 9:25 PM

conservative talk radio: ” we told you so.”

moonbatkiller on June 7, 2010 at 12:58 PM

And when it all really collapses, I think Will Smith in “I, Robot” will have the quite worth repeating, to our shame and deep regret-”You know, somehow, “I told you so” just doesn’t quite say it.” But, the lefties, progressives and socialists all would be like the Bruce Isamy on the Titanic saying “But this ship is unsinkable!”
as I’ve said, ad nauseum, there are 5 reasons American haters give for their programs failing for years, decades…
1. Not enough money has been spent (recent news)
2. Not enough time has elapsed (oh, this is like single malt Scotch- it needs to age 70-160 years?)
3. The right people haven’t been in charge (unlike the people who wrote the program)
4. It just needs to be tweaked/amended
5. Any combination of the above.
That’s all the further away we are from heaven on earth my friend!

Amendment X on June 7, 2010 at 9:25 PM

First, Sachs confirms — on MS-NBC, no less — that the Obama administration and Democrats in Congress had no strategy for long-term growth.

MS-NBC: See-BS. (Statement of unknown origin.)

Dr. Charles G. Waugh on June 7, 2010 at 10:58 PM