NYT: Say, these Obama admin job-creation claims seem rather dodgy

posted at 10:41 am on August 26, 2013 by Ed Morrissey

Maybe the real surprise is that the White House is still using Porkulus formulas to make their job-creation claims, years after they have been discredited by newspapers across the country.  The New York Times belatedly took a closer look at job-creation figures from the Obama administration, and found that — like Obamanomics — they just don’t add up:

CREATING jobs is an essential goal today, given our high unemployment rate. But when job programs rely on taxpayer backing, their success or failure should be clearly disclosed.

For example, the United States Department of Agriculture has called its $1.6 billion business and industry loan program a rousing success. Not surprisingly, the department often trumpets the number of jobs that are expected to result from these loans — figures that it gets from the borrowers themselves. Whether these jobs are actually created, however, is another story.

The loan guarantee program is overseen by the Rural Development unit of the Agriculture Department and is part of the American Recovery and Reinvestment Act of 2009. Rural Development provides loan guarantees of as much as 90 percent to banks or other approved lenders that finance the improvement or development of businesses in rural and high-unemployment areas.

Those who followed the long and bankrupt saga of the green-tech subsidy program will find this a very familiar tale, if on a smaller scale. Once again, the Obama administration decided to “invest” large amounts of taxpayer dollars into questionable operations.  Once again, the White House overpromised on jobs — far beyond even what the recipients of the funds proposed would be created.  And once again, the administration demonstrated that bureaucrats don’t make good venture capitalists.

For instance, the program’s website brags about its success with Carolina AAC, a concrete manufacturer who got more than $10 million in 2010 to build a new plant in Bennettsville.  The USDA claims that this will create 197 jobs, but three years later, the plant still isn’t complete — and it’s only going to create 36 jobs, and only 10 have been created so far.  Even at the full 36, that comes to $288,889 per job … or it would, if the company wasn’t in liquidation.

Similarly, closer to me, the USDA “invested” over $4 million in Singletary Foods in small-town Wells, Minnesota, which was supposed to create 220 jobs.  Only 30 people ever worked at Singletary at one time, though, and the $4.36 million has disappeared along with those 30 jobs.  The bank seized Singletary’s property and sold it off to investors, while Singletary Foods’ owner is trying to find another $5 million to build his plant.

Clearly, USDA bureaucrats aren’t terribly adept at picking trustworthy “investments.”  The White House shows similar trustworthiness in its jobs-creation claims.  The only question we have left to answer is just how many millions — or billions — this administration has lost in such “investments” in four and a half years.  Maybe we need a Dodd-Frank for the public sector.


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They are as accurate as their claims of foreign policy success, or the positive affects of Obamacare, or pretty much anything team O claims.

rob verdi on August 26, 2013 at 10:44 AM

We should erect a statue of Rep. Joe Wilson on the White House lawn.

fogw on August 26, 2013 at 10:44 AM

Funny, how everything in honesty in this administration can ultimately be traced back to the college transcripts debate.

Oil Can on August 26, 2013 at 10:44 AM

The NYT is racist.

ramesees on August 26, 2013 at 10:46 AM

What? No Miley Cyrus thread?: https://twitter.com/aguywithnolife/statuses/371813204315213824

davidk on August 26, 2013 at 10:47 AM

How would an affirmative action loser like obozo know anything about job creation?

Flange on August 26, 2013 at 10:48 AM

What are the costs of the bureaucracy required to administer these programs? What is the cost of the waste these boondoggles create? What is the cost of the market dislocations and distortions?

These people think they are so smart that they can do anything and failure doesn’t seem to deter or dissuade them.

It’s maddening.

Charlemagne on August 26, 2013 at 10:48 AM

The NYT is racist.

ramesees on August 26, 2013 at 10:46 AM

You’re racist for saying that. It’s enlightening. And sad.

/urban elitist

The Schaef on August 26, 2013 at 10:49 AM

Even a broken clock shows the right time twice a day….

Athos on August 26, 2013 at 10:49 AM

I would say we don’t have a shovel ready president, but he is so adept at shoveling shitte I almost think he has a Ph.D. in it.

NotCoach on August 26, 2013 at 10:49 AM

“You lie!”

Truer words never spoken!

Angineer on August 26, 2013 at 10:51 AM

Thank you LIV’s for hoisting the biggest fraud onto this country ever seen.

hillsoftx on August 26, 2013 at 10:53 AM

And yet politico has a story up on the failed energy policies under W

Puhleeze

cmsinaz on August 26, 2013 at 10:53 AM

And the majority of the job created are part time and low paying… That is socialism…

mnjg on August 26, 2013 at 10:58 AM

I don’t know, there are quite a few Mexican drug cartel hit men who now have jobs because they have U.S. guns to do them.

Bishop on August 26, 2013 at 11:00 AM

It’s real easy to guess who doesn’t care.

docflash on August 26, 2013 at 11:08 AM

The huge problem is government SHOULD NOT be decision makers for awarding business contracts!! Where did all the billions go? Someone(s) living high off the hog.

karlinsync on August 26, 2013 at 11:09 AM

The stimulus was a terrible failure, but socialists continue to defend it somehow. How on earth can anyone say that the federal government is a competent investor?

blink on August 26, 2013 at 11:00 AM

Midas Obama ain’t.

NotCoach on August 26, 2013 at 11:09 AM

The economy is thriving inside the DC bubble.

What’s the problem?

VibrioCocci on August 26, 2013 at 11:09 AM

mnjg on August 26, 2013 at 10:58 AM

77% of them:

http://www.zerohedge.com/news/2013-08-02/obamacare-full-frontal-953000-jobs-created-2013-77-or-731000-are-part-time

Everything our government agencies tell us about jobs is crafted political propaganda. Many of us have been explaining that for years.

Why did the NYT decide to go and tell people NOW? Why stop their cheer leading for Zero?

dogsoldier on August 26, 2013 at 11:09 AM

The stimulus was a terrible failure, but socialists continue to defend it somehow. How on earth can anyone say that the federal government is a competent investor?

blink on August 26, 2013 at 11:00 AM

It’s their religion and they defend it irrationally. They may be mentally ill.

dogsoldier on August 26, 2013 at 11:11 AM

Porkulus was supposed to be a one-time massive influx of nearly $1 trillion – but has the level of government spending dropped by any significant measure to the level it was before Porkulus?

We’re now in the 4th year of Porkulus spending levels – and the economy remains stagnant, 90%+ of all new jobs created are part-time jobs, energy production on federal lands is down significantly, and government entitlement programs have soared in numbers and cost. Today more people are on food stamps than live in Spain.

For an Administration that is based on an Alinsky+Cloward/Piven approach towards governance and economics – they consider themselves quite successful with everything working as intended.

Athos on August 26, 2013 at 11:12 AM

Oxymoron: Government investment.

Tater Salad on August 26, 2013 at 11:12 AM

Simple, we need a law making federal government investment in private companies illegal.

slickwillie2001 on August 26, 2013 at 11:14 AM

Credit where credit is due, the IRS has help wanted signs on its doors, bankruptcy attorneys are pulling double shifts trying to salvage green energy firms, firearm and amo manufacturers can’t keep up with demand, and part-time jobs are at an all time high.

antipc on August 26, 2013 at 11:15 AM

Everyone talks about transparency with Obama’s administration, aside from the translucence, the hardest part is to get the truth from them. Is anyone keep track of how many lies they’ve told, just in the past 6 months, let alone the past 4 years?

bflat879 on August 26, 2013 at 11:16 AM

We should erect a statue of Rep. Joe Wilson on the White House lawn.

fogw on August 26, 2013 at 10:44 AM

Complete with nonstop recording.

HiJack on August 26, 2013 at 11:18 AM

Why did the NYT decide to go and tell people NOW? Why stop their cheer leading for Zero?

dogsoldier on August 26, 2013 at 11:09 AM

The personality cult is waning in light of the obvious fakery.

This disillusionment clearly is an indicator that they will soon be getting in early on the bandwagon of the only competent and honest politician available to save us in 2016–Hillary!

/s

rwenger43 on August 26, 2013 at 11:21 AM

What can you really expect from a community activist with no real job experience. It has been said many times but is so true. This guy is a stain on American history. The support that he gets from the libs and media is stunning.

rjoco1 on August 26, 2013 at 11:22 AM

But a GOP administration was going to outlaw contraception, right?

This is what we get when too many voters don’t have the brains to realize what an economic moron Obama is or don’t have the stones to vote against him just because he’s black.

BuckeyeSam on August 26, 2013 at 11:24 AM

OT/ but how about the State of NY suing Trump for 40 million dollars for his supposed “fake” University? Seems the story has a slight twist…. Obama himself met with the NY State Attorney general on Thursday and voila Trump is sued on Sat. Coincidence or shades of IRS ish witch hunts of your enemies?

sandee on August 26, 2013 at 11:24 AM

The stimulus was a terrible failure, but socialists continue to defend it somehow. How on earth can anyone say that the federal government is a competent investor?

blink on August 26, 2013 at 11:00 AM

Midas Obama ain’t.

NotCoach on August 26, 2013 at 11:09 AM

..like so many images created during this fool’s reign, the post-apocalyptic “My work is done here” poster is becoming iconic truth for the damage that has been wrought.

The War Planner on August 26, 2013 at 11:27 AM

What can you really expect from a community activist with no real job experience. It has been said many times but is so true. This guy is a stain on American history. The support that he gets from the libs and media is stunning.

rjoco1 on August 26, 2013 at 11:22 AM

This is so true. There was a ton of evidence during the 2008 campaign to tell voters that Obama shouldn’t be anywhere near the WH. Heck, just go back and see how he and Ayers blew through about $100 million from the Annenburg Challenge to improve Chicago public schools and accomplish nothing except funding a boatload of nonsense.

Obama’s gift is blowing other people’s money.

BuckeyeSam on August 26, 2013 at 11:28 AM

Why did the NYT decide to go and tell people NOW? Why stop their cheer leading for Zero?

dogsoldier on August 26, 2013 at 11:09 AM

They needed him, of course, to win re-election, but now we’re getting to the time when they need to make room for their next messiah.

Flange on August 26, 2013 at 11:36 AM

Obama’s gift is blowing other people’s money.

BuckeyeSam on August 26, 2013 at 11:28 AM

Well. You knew that he Bogarted the choom, so what do you expect?

oldroy on August 26, 2013 at 11:38 AM

Once again, the White House overpromised on jobs — far beyond even what the recipients of the funds proposed would be created.

Obama’s rhetoric soars like an eagle. Obama’s reality is more of the dodo bird type. Isn’t it all like that? Cooling the earth, stilling the oceans. Good jobs. End of racial strife (OK, he never said that — don’t want to kill the goose that lays those golden votes). Stopping the immorality of borrowing from our grandchildren’s future. Public financing for presidential elections. Lobbyists out of Washington. Sit down with dictators to work things out, if he wants to. Hope and Change. Yes we Can. He is the One. His Simpson-Bowles commission. The AFFORDABLE CARE ACT. Talk about overpromised.

/but he killed Osama Bin Laden

Paul-Cincy on August 26, 2013 at 11:54 AM

It’s not uncommon for small businesses to fail, and capital nowadays is hard to come by. So some defaults are to be expected.

That’s why starting a business should be left to business-people risking their own resources. Putting taxpayer money at risk on politically motivated pipe dreams is both immoral and stupid. Financially illiterate government hacks who don’t the difference between a balance sheet and a bed sheet, are the last people anyone should trust investing money taken by force from the ‘investors.’

Government funding of businesses and technologies the private sector has already rejected only benefits government, along with the crooks and utopian morons who support it.

RadClown on August 26, 2013 at 11:56 AM

Stories like this tickle us, but what about the even bigger boondoggle that is Pell grants? I’m in my first year of my degree and as I look around the classroom, I can tell you half or more of my peers will drop out before the end of the year. Statistics don’t lie, and even the university itself admits that a scant 26% of new entrants will graduate.

Why not means test Pell grants? It’s ludicrous to hand money to kids who can barely read and write, to say nothing of actually study, go to college.

JoseQuinones on August 26, 2013 at 11:58 AM

Midas Obama ain’t.

NotCoach on August 26, 2013 at 11:09 AM

Damn skippy he ain’t.

*spits*

;)

Midas on August 26, 2013 at 11:59 AM

The stimulus was a terrible failure, but socialists continue to defend it somehow. How on earth can anyone say that the federal government is a competent investor?

blink on August 26, 2013 at 11:00 AM

The stimulus. Several incarnations … aren’t we talking trillions of dollars? Cash for clunkers. Why not just drop money from airplanes instead.

..like so many images created during this fool’s reign, the post-apocalyptic “My work is done here” poster is becoming iconic truth for the damage that has been wrought.

The War Planner on August 26, 2013 at 11:27 AM

http://startthinkingright.files.wordpress.com/2011/08/obama-my-work-here-is-done.png

Funny! Notice how Obama is as unsullied and fresh as can be, without a mark on him, while everything around him is Detroit.

Paul-Cincy on August 26, 2013 at 12:00 PM

Notice how Obama is as unsullied and fresh as can be, without a mark on him, while everything around him is Detroit.

That’s reflective of not only the power and influence of the lamestream media – but their complete bankruptcy when it comes to intellectual integrity and ethics. Without the ‘Ministry of Truth’ working overtime to redefine reality – Obama would be sinking faster at this point of his second term than Nixon was.

Athos on August 26, 2013 at 12:12 PM

I’m as excited the Slimes printed this as anyone else, but this reporter Gretchen Morgenson is an actual reporter – not the usual NYT hack. So don’t get too excited. She has a book, Reckless Endangerment which features all the dirty details of the alliance between Big Money & Social Justice that caused the housing crisis. If you read all her articles, she probably hasn’t been a hack this whole time.

No cya here (I wish there was). It’s just a good reporter.

blockchords on August 26, 2013 at 12:28 PM

33 Facts about the Obama economy that the lamestream media shamefully ignores….

There are some reporters out there who still have integrity, ethics, and do their jobs quite well.

NYT’s Gretchen Morgenson is one of them.

CBS’s Sheryl Atkinson has done stellar work exposing not only Fast & Furious, but working to expose the fecklessness of the Administration around the Benghazi terror attack.

Let’s also not forget about FNC’s James Rosen, who was targeted by the Obama Administration (DoJ), as were a number of AP reporters for running stories that reflected badly on the President and his Administration.

The problem with this story is that the NYT will not follow it up – or deliver additional stories. But when the NYT is called next on the carpet for their lack of journalistic integrity, you can bet that this is one of the stories that they will use to point to their ‘objectivity’.

Athos on August 26, 2013 at 12:49 PM

NYT just putting in a market for August unemployment numbers so they can sat they weren’t taken by surprise.

oldroy on August 26, 2013 at 12:56 PM

market = marker

oldroy on August 26, 2013 at 12:56 PM

Notice how no comments are allowed on her article. They know their leftist readership would be foaming at the mouth with bile and calling Ms. Morgenson a racist for daring say anything negative about their Obama.

njrob on August 26, 2013 at 9:27 PM