October 31, 2009

Weak Case for Jobs Created or Saved by Stimulus

TeamObama has an uphill battle to persuade people that stimulus spending is saving or creating jobs. This chart from the Heritage Foundation demonstrates that the claims and promises were optimistic, if not hollow.

In Vermont the initial claim touted by the senior and junior senators was for creating or saving ~8,000 jobs via stimulus spending in 2009 and 2010. Granted, keeping score accurately is nearly an impossible task, but using the Federal rules, the revised reported total to date is less than 1,600. I'm trying to find out the split between public sector and private sector jobs.

Portraying optimism at the time when the economy was plunging into deep recession is understandable, but to my knowledge, the 8,000 figure has never been revised. Certainly, as more stimulus money is spent, more jobs will be saved/created, but planned spending cannot possibly offset the loss of Vermont jobs during this recession.

But Vermont has deeper problems, even in 'good' times, because its reputation is not 'business-friendly' with high taxation, long-term government spending that has outstripped the state's tax capacity and little demonstrated willingness by Legislative leaders to seriously prioritize and take the needed actions to chart a different course. Until and unless they seriously cut back spending and encourage private sector job growth, Vermont's economic health will continue its 10 year decline.
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