“It’s awful hard to say it’s [$1.2 trillion stimulus] working…but if the dog hadn’t stopped would it have caught the rabbit?”
–Vice President Joe Biden, Businessweek, October 14, 2010
In February 2009, Democrats enacted a $1.2 trillion “stimulus” plan (including the cost of interest), promoting it as necessary to create jobs. During the summer of 2010, the Democrats went on a six-week “Recovery Summer” promotional tour to convince the American people of the stimulus plan’s “success.” However, the Obama administration’s talking points contradicted the real economic pain Americans felt due to record highs in unemployment and home foreclosures and the inability of many families to keep food on the table. As expected, the Democrats’ efforts at persuasion were unsuccessful. Ironically, a recent Businessweek article reports that Vice President Biden’s mission for the next couple of weeks is, once again, to try to convince the American people that the Democrats’ $1.2 trillion stimulus was a success. In other words, it’s the same “Recovery Summer” plan in a different season. Below is a short list of the Democrats’ economic failures.
DEMOCRATS' RECOVERY AUTUMN:
Lack of Job Creation: On October 8, 2010, the Bureau of Labor Statistics (BLS) reported that the national unemployment rate was 9.6 percent, with 95,000 jobs lost in the month of September. The unemployment rate has been above 9 percent for the past 17 months, including a 26-year high of 10.2 percent in October 2009. The Associated Press reported that the unemployment rate has been stuck above 9.5 percent for 14 consecutive months, the longest stretch since the 1930s.
Record Home Foreclosures: On October 14, 2010, FoxNews.com reported, “A total of 288,345 properties were lost to foreclosure in the July-September quarter, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service. That's up from nearly 270,000 in the second quarter, the previous high point in the firm's records dating back to 2005. Banks have seized more than 816,000 homes through the first nine months of the year and had been on pace to seize 1.2 million by the end of 2010.”
Excessive Government Spending: On October 18, 2010, CBSNews.com reported, “New numbers posted today on the Treasury Department website show the National Debt has increased by more than $3 trillion since President Obama took office…The Bureau of Public Debt reported today that the National Debt had hit an all time high of $13.665 trillion…The Administration has projected the National Debt will soar in Mr. Obama's fourth year in office to nearly $16.5-trillion in 2012. That's more than 100 percent of the value of the nation's economy and $5.9-trillion above what it was his first day on the job.”
Weak Consumer Sentiment: On October 15, 2010, Reuters reported, “U.S. consumer sentiment unexpectedly dipped in early October to its weakest level since July, with buying plans on the decline, a survey released Friday showed. Also, consumers' assessments of government economic policies fell to the lowest level since U.S. President Barack Obama took office, it showed.”
Stifled Economic Growth: On October 15, 2010, the Wall Street Journal reported, “The Fed chairman's [Ben Bernanke] economic outlook was generally gloomy. Business spending has slowed, consumer finances are improving unevenly, housing has remained depressed and job growth next year isn't likely to be strong enough to bring down unemployment very much, he said.”
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