Stimulus after stimulus program has been put in place by the Obama administration. Cash for clunkers, the GM/Chrysler/Union bail-outs, the actual 2009 economic stimulus bill, and on and on and on. As the New American posted, it didn’t create much of anything in the private sector.
Thomas Smith at Emory University, supported the stimulus package but he now finds that although the funds may have resulted in some people being employed, the stimulus spending in the construction area has not resulted in creating jobs. Another economist compared the impact of federal stimulus funds to employment in the construction industry to trying to move the Empire State Building by pushing it.
As recent as December of 2010, the employment outlook was gloomy which finally forced Obama to sign the extension of the Bush Tax Cuts into law on December 17th. In addition to extending the current tax rates, Democrats further cut taxes by slashing the Social Security tax by 2%. Obama and the Congressional liberals had found a new religion and it’s already proving fruitful.
Today, the unemployment report dropped to 8.9%, the lowest since 2009. It didn’t stay at 8.8% throughout the stimulus. It didn’t drop when Obama took over GM. It didn’t drop each time the government tried to be the solution to the problem. Only once the government removed some of it’s burdensome taxes did the economy react and it reacted within weeks, not years.
Let citizens keep their money and they will spend it. That creates true economic stimulus as businesses hire and expand to handle the increased demand. Demand which only consumers can drive. Capitalism 101 liberals, are they finally learning?