Now, if you know anything about recessions, you know the last thing to recover is jobs. Here’s a very simplified time-line of a recession:
- Capital is lost
- Companies lose operational budget
- Costs are cut
- Which usually means layoffs
- Purchasing declines
- Manufacturing jobs are lost
- The market stabilizes
- Companies experience capital growth
- Jobs increase
- Purchasing increases
- Manufacturing jobs increase
I also don’t fault Presidents that much over economic news. They can only raise taxes or cut taxes, which ultimately has an effect on the economy. The exception was TARP, which was supposed to rescue a banking industry that took a bat to the knees.
So I’d be more than willing to let Obama off the hook here, had he not been sending Biden out to gloat about how wonderful the stimulus has been working! But, the morons in the Obama administration seem to be pushing for clear skies in the middle of a hurricane, so they deserve to be punished on this issue.
In addition, the Stimulus Package (Porkulus) was supossed to save millions of jobs with the $700 billion doled out. Did it? So far, the indicators say no. Where did this money go? Nobody seems to know, but Biden thinks it’s going to create jobs merely by mentioning Stimulus.
As an aside, if you have 7 million unemployed, you could take the $700 billion and just give it to those people in $100,000 chunks. That’s two times my current salary!
But Stimulus hasn’t been effective at all because it had nothing to do with steps 6 or 7. The market hadn’t stabilized, and there hadn’t been any capital growth. In fact, the stimulus will end up being absorbed by bureaucracy– hardly and effective use of money. Since it’s not stimulating any capital growth, it can’t stimulate the overall economy, which is why most of it is a waste.
But I’m sure the Democratic special interests enjoyed the influx of taxpayer money.