Notes From Babel

Economic Lies Make Baby Jesus Cry

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The White House is reporting a lot of false information about the effects of $787 billion stimulus program:

The AP review found some counts were more than 10 times as high as the actual number of jobs; some jobs credited to the stimulus program were counted two and sometimes more than four times; and other jobs were credited to stimulus spending when none was produced.

For example:

_ A company working with the Federal Communications Commission reported that stimulus money paid for 4,231 jobs, when about 1,000 were produced.

_ A Georgia community college reported creating 280 jobs with recovery money, but none was created from stimulus spending.

_ A Florida child care center said its stimulus money saved 129 jobs but used the money on raises for existing employees.

There’s no evidence the White House sought to inflate job numbers in the report. But administration officials seized on the 30,000 figure as evidence that the stimulus program was on its way toward fulfilling the president’s promise of creating or saving 3.5 million jobs by the end of next year.

. . . .

As of early Thursday, on its recovery.org Web site, the government was still citing 30,383 as the actual number of jobs linked so far to stimulus spending, despite the mistakes the White House has now acknowledged and said were being corrected.

Deceptions and over-exaggerations about the effects of stimulus money and other spending programs seem to me more egregious than regular deceptions and over-exaggerations about the effects of progressivist policies.  Why?  Because more and more the civilized world depends on sound economic theory for its stability and prosperity, and less and less does it seem we have any idea what “sound” economic policy is when it comes to the federal government spending x-illion dollars on ephemeral “recovery” and “stimulus” programs.  With all the “won’t somebody please think of the children” when it comes to progressivist environmental planning, why won’t they think of our children when it comes to establishing the true historical record about the outcome of progressivist economic planning?  If flopping stacks of money in front of a swamp cooler and blasting it into the either didn’t work, let’s please not say that it did.

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Written by Tim Kowal

October 31, 2009 at 8:57 am

Posted in Economics, Rants

Tagged with ,

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