More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Jared Bernstein

Jared Bernstein

Posted: August 25, 2010 05:17 PM

Ever since the Recovery Act passed last February, Congressional Republicans who opposed this economic rescue plan have had to do an awkward dance around the truth. After all, when you declare from the beginning that the Recovery Act won't create a single job, you're going to be forced to do a little two-step around the facts as week after week leading economists, the nation's governors, and even your own constituents say otherwise.

But yesterday, when Representative Boehner declared that "all this 'stimulus' spending has gotten us nowhere" on the same day the nonpartisan CBO said the program has created or saved as many as 3.3 million jobs nationwide and his own home state's Department of Transportation said nearly 9,500 construction workers were on the job in July just on Ohio Recovery Act transportation projects alone... well, let's just say that dance got a little more... awkward.

Now, Representative Boehner was one of the first to declare the Recovery Act dead on arrival -- the day it was signed into law, he declared it would "do little to create jobs." But as soon as June 2009, as funding for Recovery Act transportation projects began to flow into Ohio, he said those dollars would be used for -- get this -- "shovel-ready projects that will create much-needed jobs."

And then when the nonpartisan CBO, Congress's top watchdog and an institution widely respected on both sides of the aisle, began weighing in on the job impact of the Recovery Act, the dance got a little more complicated. Check out these quotes from Rep Boehner, followed by the facts:

  • August 2009: Maintains that stimulus hasn't created any jobs: "You know, after the1 trillion dollars stimulus bill that didn't create any jobs." [Hugh Hewitt Show, 8/29/09]

  • November 2009: The nonpartisan CBO announces the Recovery Act created or saved as many as 1.6 million jobs through September 2009. [CBO Report, 11/30/09]

  • January 2010: Says the stimulus "clearly hasn't worked": "Their trillion-dollar stimulus plan from a year ago clearly has not worked." [NPR, 1/27/10]

  • February 2010: The nonpartisan CBO announces the Recovery Act has created or saved as many as 2.1 million jobs nationwide through December 2009. [CBO Report, 2/23/10]

  • May 2010: Still asking where the jobs are: "Where are the jobs?" [Boehner Statement, 5/7/10]

  • May 2010: The nonpartisan CBO says the Recovery Act created or saved as many as 2.8 million jobs through March 2010. [CBO Report, 5/25/10]


And then, of course, yesterday was the most difficult dance step of all: on the very same day that he declares in a major speech that the Recovery Act has "gotten us nowhere," first,the nonpartisan CBO announces that the Recovery Act has created as many as 3.3 million jobs nationwide and lowered the unemployment rate by as much as 1.8 percent through March of this year, and then the Ohio Department of Transportation announces that nearly 9,500 construction workers were on the job on Ohio Recovery Act transportation projects in July, the highest monthly total since it began.

I suspect those nearly 9,500 Ohio construction workers and 3.3 million Americans at work thanks to the Recovery act would disagree with Rep. Boehner's statement that the Recovery Act has "gotten us nowhere."

And then to make his dance even more complicated, leading economist Mark Zandi said today that the Congressman from Ohio was "just wrong" that the Recovery Act has "gotten us nowhere:"

Asked about Rep. Boehner's claim that "all of this 'stimulus' spending has gotten us nowhere," Mark Zandi, chief economist of Moody's Analytics said "that is just wrong, the stimulus has been very helpful."

And let's keep in mind who we are talking about here. This is the same Republican leader that actually said he wanted all of those people to lose their jobs earlier this month when he called for stopping the Recovery Act - a claim that got him in some hot water with independent fact-checkers who rated his rhetoric flat-out false.

The true facts of the case are that this economy has undergone a major turnaround from the very deep recession that greeted President Obama when he took office, and the Recovery Act has been a major factor in that reversal. Yes, we've still got a long way to go, but we're moving in the right direction.

While it's bad enough that Rep Boehner refuses to accept these facts, what's worse is that he and his Republican colleagues have only one solution: a return to the same Bush economic policies that got us into this mess. As the head of their campaign committee, Rep. Pete Sessions, said, if they take control of Congress, they will go back to "the exact same agenda" they were pushing before President Obama took office.

Mr. Boehner and his colleagues may well be the only Americans nostalgic for the economic policies of the Bush era. But we can't go backwards. We need to recognize the positive impact of the Recovery Act and build on the momentum we've established.

Jared Bernstein is Deputy Assistant to the President on Economic Policy

This post originally appeared at the White House Recovery Act Blog.

 
 
 
  • Comments
  • 456
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2 3 4 5  Next ›  Last »  (10 total)
02:57 PM on 09/07/2010
Talk about dancing around the truth, try this one on for size:

In a recent speech to the National Association of Business Economics, CBO Director Doug Elmendorf confirmed this by stating:

[W]e don't think one can learn much from watching the evolution of particular components of GDP [gross domestic product] over the last few quarters about the effects of the stimulus … so we fall back on repeating the sort of analysis we did before. And we tried to be very explicit about it that it is essentially repeating the same exercise we did rather than an independent check on it.[1]
When asked if this means that any actual underperformance of the stimulus would fail to show up in the CBO's stimulus jobs count, Elmendorf replied "That's right." This means the 1.5 million jobs saved estimate was pre-determined.

Let me type is real slow for you so you can understand it - "Elmendorf has confirmed that the CBO's stimulus analysis consists of little more than re-releasing its pre-stimulus projections."

Nice attempt at your version of the "truth".
10:05 PM on 08/29/2010
You cannot prove that these jobs would not have been gone. Also, there's no proof that any of these jobs are long term if they would have ever been lost in the first place.

The reality is that we have had many jobs lost in the public sector (police, fireman, and teachers) in the last 18 months while the so called stimulus was in effect.
12:39 PM on 08/30/2010
How many is 'many'. Can you give us some facts to go with your reality.
photo
HUFFPOST PUNDIT
jsgaetano
Semper Fidelis Tyrannosaurus!
08:21 PM on 08/29/2010
If we want to see why conservatives are throwing their hate-fueled ideology against getting Americans employed, all we need to do is look at their track record

http://blogs.wsj.com/economics/2009/01/09/bush-on-jobs-the-worst-track-record-on-record/

They had eight years to do literally everything they wanted, and all they accomplished was destroying the US economy and more than doubling the national debt AGAIN. Every time conservatives get in control of the White House, they run up the national debt.

What's amazing is how anyone could possibly look at anything conservatives say with any credibility. In the last 30+ years, they've been completely wrong on every economic prediction they've ever made.
09:05 PM on 08/29/2010
I've wondered on this too and it blows me away. The facts are there, real true black and white numbers - the facts. But somehow they are ignored. I guess the best we can do is get out there and make sure the Democrats get elected and reelected. No excuse not to go to the polls as we can't afford to be complacent.
09:28 PM on 08/29/2010
The problem still is Reagan and the fawning cult following they built up for him, and the authoritarian edifice he established to quell debate and transparency, while enriching his cronies and perpetuting the Right Wing. Truly the worst president in the world.
photo
HUFFPOST PUNDIT
jsgaetano
Semper Fidelis Tyrannosaurus!
03:00 AM on 08/30/2010
I'd say GWB is hands down the worst, but I have to agree with you that, in the longterm view, Reagan was by far the most damaging.

Reagan did more damage to the US than three Soviet Unions could have done in 100 years.
photo
HUFFPOST SUPER USER
mtracy9
08:08 PM on 08/29/2010
The American economy never did so well as it did after

President Clinton raised the top marginal income tax rate

for those making more that $250,000/yr. from 33% to 39%. It

even produced record budget surpluses.
09:30 PM on 08/29/2010
But while doing that Clinton planted the seeds of economic destruction long range with the now-failed policies of NAFTA et al, that are causing so much economic chaos south of the border and spreading here..
10:06 PM on 08/29/2010
If that is true, then it is also true that the Republican Congress CUT spending of the Federal Government.

You didn't get the surpluses JUST because of the income tax rate increase.
08:08 PM on 08/29/2010
Mr. Jared, GDP is on a downward trend:

4th quarter of 2009: 5%
1st quarter of 2010: 3.7%
2nd quarter of 2010: 1.6% (revised downward from 2.4%)

Mr. Jared, I read your book and I understand that you are committed Keynesian. But you have to admit that the economy is coming off the sugar high of the stimulus and now it looks like job creation in the private sector has stalled. Creating public sector jobs won't do when they depend on tax revenue from the private sector to exist. Please, for the sake of the country, rethink your economic policy.
09:07 PM on 08/29/2010
And if you read the reports - our government has stalled with more stimulus to keep the momentum going, because of those dang republican deficit hawks (and yes, those democrats who are for who knows the reason not voting with reason) who don't even know how to balance their own checkbook I'm certain.
10:08 PM on 08/29/2010
This is exactly what happened during the Depression. The Obama Administration and Democrats are following the same formula that made a bad recession last 10 years during the 1930s.

They have not learned from history at all.
photo
HUFFPOST SUPER USER
Martin Houde
I am no microbe
06:02 PM on 09/07/2010
On the contrary, the Democrats are following the blue print to stop the recession from getting worse, and begin the way back up. The worst of the Great Depression ended as Roosevelt took power.

Hoover's politics of not stimulating the economy was what made a recession become the Great Depression. The New Deal created a recovery. Granted, it was long-winded, but still, things improved after the New Deal was put in place.

You should check your history. The Republican Hoover led the way into the Depression. The Democrat FDR led the way out of it, slowly but steadily.
photo
HUFFPOST SUPER USER
Russell Masingale
weary I am of the Astroturf.
07:47 AM on 09/26/2010
no choking of the new deal funds in 37 is what led to the redownturn that lasted until the war started. just like then deficit hawks forced the issue and were proven wrong then as they are wrong now.
photo
FTracy3
My micro-bio is as empty as the rest of my life.
07:26 PM on 08/29/2010
Recovery summer is almost over; the country should be up and walking around by Labor Day.
10:10 PM on 08/29/2010
9.x % unemployment means 90% employment. Of course, the reality is that unemployment is closer to 18% or higher when you include people not looking for jobs and underemployed.

Good thing is that November is about 8 weeks away. All of those people can show how displeased they are with this Government.
06:41 PM on 08/29/2010
If Obama had listened to Volker and if he'd backed a larger stimulus with less tax cuts in it, and if he'd engaged in a national debate about the role of government as a force for good and the need to constrain greedy corporations, then you wouldn't have to resort to this kind of namby pamby apology, while you huddle in the basement fearing a Republican deluge in the mid-terms. They would be exposed as the corporate shills they are.

But the administration's cowardice and pathetic lack of principled leadership are about to catch up with it.

The sad part is, it will likely ruin America for a very long time.

It's time to grow a pair.
photo
HUFFPOST SUPER USER
iam7545 r
04:32 PM on 08/29/2010
Jared - did you listen to what Biden said last week? It wasnt the republicans that refuted the truthfulness of what he said. It was every fact checking group in the USA.

Biden also promised earlier this year in hos typical bar room style boasting that we would add 500,000 jobs every month this summer and more in the fall.

Here is an eye dear since you advise Biden - get him to tell the truth.
photo
HUFFPOST SUPER USER
patches12
02:34 PM on 08/29/2010
Increasingly awkward dance around the truth...

Here is some truth Dude.. most of those jobs fell into two categories

1. unsustainable government jobs

2. unsustainable make-work construction jobs

Here is a more poignant realityy.. the GDP shrank from original projectiosn by over 50%
The housing market is in the toilet
Real unemployment is around 16-17% nationwide
Unemployment in the inner-city and amongst inner city youths is at record high numbers
The federal deficit is reaching record numbers
Businesses know that big tax increases are coming to pay for the mess that is Obamacare and are afraid to hire people even if they need them
02:19 PM on 08/29/2010
In regard to jobs not being created as a result of the Recovery Act, facts and truth have little or nothing to do with Boehner's outlandish assertions. They certainly don't get in the way. Mr. Bernstein, you are aware that we are in the midst of a propaganda war, particularly between now and the coming elections. The Republicans have decided that the lie that "all this 'stimulus' spending has gotten us nowhere" must be put forward and repeated over and over. The obvious purpose is provide a basis, true or not, for voting against the Democrats. That much should be clear. "We need to recognize the positive impact of the Recovery Act and build on the momentum we've established." Yes, and that point needs to be effectively made to counter the Republican propaganda being put forward by Boehner and others. Calling him out in this article is helpful, but it may amount to preaching to the choir. It is not my intention to downplay the usefullness of this article, but to put it in the larger context of the pre-election, ongoing propaganda war, and to point out that we should not be surprised when Boehner and others speak the way they do.
photo
HUFFPOST SUPER USER
Fred Ricardo
The white hat, Truth, Justices and theAmerican way
02:12 PM on 08/29/2010
Slow down imports of goods into this country. Make all cargo vessels go to Portland and wait to get into this country. Also what is it with Tax money going to expand border crossings stations from Mexico and build four line roads from Phoenix to Canada? Make it one lane road and inspect all trucks.

Start to tax companies like Dell and Microsoft who export tech and support jobs to India. Call a help line to see what I am talking about.
HUFFPOST SUPER USER
LBA7895
01:54 PM on 08/29/2010
New name for the

over-aged
under-educated
(formerly) blue collar
(now) retired and on the dole
white
males

who make up the T-Party and the Republiklan Party:

THE SIMPLETONS
01:51 PM on 08/29/2010
Raging Boehner's a propagandist, that's all.
photo
Decorina
Hypocrisy means your karma ran over your dogma
01:37 PM on 08/29/2010
I can see their hypocrisy from my house! With my eyes closed. Just sayin'.
HUFFPOST SUPER USER
Mark Germain
01:18 PM on 08/29/2010
A huge, real issue harming America is allowing the Republicans a "free pass" on all their duplicity, hypocrisy, false-rhetoric, obfuscation and out and out lies for their own personal and party's gain is outrageous, deplorable and very harmful.

The MSM, Democratic leadership, the WH and President, have done our country a great disservice in not holding these liars accountable. They say things without fear of consequence, seemingly having impunity from punishment, and continue to lie to over and over again regardless of truth and facts, to fit that days narrative and little if anything is done to refute their baloney.

The republicans are saying some blatant crap served on a silver platter but no one really seems to want to be in the public's eye, connecting the dots, and showing everyone how really self-serving these liars really are, and it is unconscionable - That is other than Jon Stewart, Rachael Maddow and Keith Olbermann.

It is mind boggling beyond belief.

It almost appears inevitable that we are heading without fail to third world status, as there seems to be little in power fighting for democracy and We the People; I guess corporate America is in control, there is no other explanation - we've been bought and paid for.
HUFFPOST SUPER USER
samtee
Shankapotomus.
07:31 PM on 08/29/2010
LOL that was funny.
HUFFPOST SUPER USER
Mark Germain
07:46 PM on 08/29/2010
If intelligence, reason, logic and truth make you laugh, I am glad I could help.
HUFFPOST SUPER USER
Pogo Bock
Not dead.
11:11 PM on 08/29/2010
That all you got?