Deficit Spending Prolongs Unemployment Crisis
The Obama administration has devoted an extraordinary amount of time and effort to convincing the American people that the president's big spending agenda is working. According to the Wall Street Journal, President Obama and White House officials have visited 172 cities in the past year and a half to argue -- incorrectly -- that the 2009 "stimulus" plan has helped our struggling economy. But no number of speeches can disguise the fact that the president's flawed economic policies have failed to reverse the persistently high unemployment rate.
Contrary to White House claims that the stimulus has saved jobs, the Bureau of Labor Statistics reports that the economy has shed 2.53 million net jobs and 3.42 total jobs since the Democratic majority passed the stimulus in February 2009. Other economic indicators are equally grim. Consumer confidence has reached its lowest level in 11 months, according to the most recent survey. Meanwhile, GDP growth has averaged only 1.4 percent. Compare that to the 9.3 percent average growth following the 1982 recession, and it is abundantly clear that the recovery promised by stimulus supporters has not materialized.
In addition to being disingenuous, claims of stimulus success reveal a governing philosophy dangerously out of touch with reality. As long as the president and Democratic leaders in Congress refuse to recognize that their policies aren't working, real solutions have no chance of even being considered. This disconnect was on full display when Congress recently debated the extension of unemployment benefits. Most members of Congress support assistance for those struggling with long-term unemployment, provided that it is funded by cutting unnecessary spending in other parts of the bloated federal budget. However, Speaker Pelosi and congressional Democrats preferred to politicize the issue for weeks rather than heed calls to actually pay for the $34 billion expenditure. By adding to the nation's record deficit yet again, the president's party is ultimately making the employment situation worse by exacerbating the conditions responsible for the sluggish job market.
There is every indication that the majority party plans to keep pursuing its job-killing agenda. Treasury Secretary Timothy Geithner announced Thursday that the administration intends to increase taxes in January on the nation's top earners and employers despite warnings from many economists and even some Democrats that tax hikes could be disastrous to our fragile economy. Through diligent practice, the Obama administration has grown quite adept at raising taxes, deficit spending and giving speeches. Unfortunately, none of those activities create jobs.
###