Unemployment Continues to Rise Despite Stimulus

September 5, 2009
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We reported earlier in the year that the stimulus bill isn’t helping the employment picture.  When the Obama administration was pushing for the bill, they said that doing nothing would push unemployment over 8%.

On Friday, the labor department reported that unemployment rose to a 26 year high of 9.7 percent.

Hotair.com has a great post that shows the following chart that shows what the Obama administration predicted that unemployment would be with and without the stimulus.

augustunempdata

This begs the question of how good is the Obama administration at predicting economic trends.  Several months ago, they put out the chart showing what would happen with and without the stimulus.  Within a month of the chart being created, it was wrong.  This is compounded by the fact that according to the administration, doing nothing would have been better than passing the stimulus.

Vice President Biden was out telling the public on Thursday that things would have been worse and that the stimulus has saved hundreds of thousands of jobs.  This same logic could be used to say that the stimulus cost us all the millions of jobs that we would have created if we did something different.

The fact is that massive government spending and doubling the deficit and national debt doesn’t help the economy in the long run and can be ineffective in the short run.

The next argument will be that the stimulus needs more time since over 80% of the money hasn’t been spent.  An interesting conspiracy theory would be that the congress is holding the spending until 2010 to get a bump in the economy prior to the 2010 elections.

Eventually the government will learn that giving us money doesn’t help us, but letting us keep more of the money we earn will help the economy.

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