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WH: Stimulus Saved Two Million Jobs

From an endlessly gullible Reuter:

White House says stimulus has saved two million jobs

By Alister Bull [sic] Wed Jan 13

WASHINGTON (Reuters) – President Barack Obama’s emergency spending measures last year saved up to 2 million U.S. jobs, the White House said on Wednesday, but it warned that the outlook for the economy remained uncertain

Christina Romer, head of Obama’s Council of Economic Advisers, said she expects positive job creation by the spring, but stressed that there was definitely a need for additional "targeted action" to aid employment.

"There is uncertainty about where the economy is going …when will the private sector come back," Romer told reporters on a conference call to discuss a quarterly report to Congress on the stimulus package.

"Where are we going to be a year from now, do we see consumer confidence come back, do we see firms … starting to invest again," she said…

In response to Obama’s call for more measures, the House of Representatives last month approved another $155 billion jobs package. The Senate is expected to take up its version of fresh jobs legislation in the coming weeks.

The White House, using two different approaches to figure out the impact of the stimulus package, estimates that U.S. employment had been raised by between 1-1/2 and 2 million jobs by the end of 2009 as a result of the stimulus measures.

This is using Mr. Obama’s ‘new math,’ which now counts any job with gets any money no matter how indirectly from the stimulus as a “saved job.”

All pretense at accuracy or honesty has been thrown out the window.

After all, they have got their midterm elections to win.

Romer said she thinks the stimulus measures will have saved up to 3.5 million jobs by year’s end.

In addition, the White House said 640,000 jobs had been saved or created by direct recipients of stimulus money, implying that this estimate may be on the low side.

Money pumped into the economy can have an amplified impact on hiring that goes beyond the value of its dollar amount because of so-called multipliers that gauge the ripple effect on the economy as the government pumps in money.

Sure it can.

Never mind that this money that is pumped into the economy is simply money that has moments before been pumped out.

Unless it was borrowed or printed. Which is even worse for the economy.

Roughly a third of the stimulus package has already been spent or received in the form of tax cuts. If money that has been pledged but not yet spent is included, that sum rises to over half of the total.

The White House estimates that this added between 3 and 4 percentage points to growth in the third quarter and between 1-1/2 and 3 percentage points in the fourth quarter.

The U.S. economy grew at an annualized pace of 2.2 percent in the third quarter after shrinking by 0.7 percent in the previous three months.

"Without the recovery act we would have continued to decline in the third quarter," Romer said. She noted that private-sector analysts forecast 4 percent growth in the fourth quarter, and said much of this activity would also be thanks to the stimulus package.

Throwing government money into the economy to artificially and temporarily boost unemployment numbers and to keep the GDP out of recession is known in climate circles as “hiding the decline.”

And it is just as mendacious.

This article was posted by Steve on Wednesday, January 13th, 2010. Comments are currently closed.

10 Responses to “WH: Stimulus Saved Two Million Jobs”

  1. Rusty Shackleford says:

    Add to that:

    From the AP:

    STIMULUS WATCH: White House changes job-count rule

    http://news.yahoo.com/s/ap/20100113/ap_on_bi_ge/us_stimulus_counting_jobs

    Associated Press Writer Brett J. Blackledge, Associated Press Writer – 41 mins ago

    WASHINGTON – The White House has abandoned its controversial method of counting jobs under President Barack Obama’s economic stimulus, making it impossible to track the number of jobs saved or created with the $787 billion in recovery money.

    Despite mounting a vigorous defense of its earlier count of more than 640,000 jobs credited to the stimulus, even after numerous errors were identified, the Obama administration now is making it easier to give the stimulus credit for hiring. It’s no longer about counting a job as saved or created; now it’s a matter of counting jobs funded by the stimulus.

    We used to say “poh-tay-toe” but now we say “poh-tah-toe”

    That means that any stimulus money used to cover payroll will be included in the jobs credited to the program, including pay raises for existing employees and pay for people who never were in jeopardy of losing their positions.

    The new rules, quietly published last month in a memorandum to federal agencies, mark the White House’s latest response to criticism about the way it counts jobs credited to the stimulus. When The Associated Press first reported flaws in the job counts in October, the White House said errors were being corrected and future counts would provide a full and correct accounting of just how many stimulus jobs were saved or created.

    It’s interesting that the AP takes credit for this being as they are constantly surprised at unemployment numbers.

  2. “In response to Obama’s call for more measures, the House of Representatives last month approved another $155 billion jobs package.”

    Let’s see… unemployment still holds at a hefty ten percent, which was never supposed to be over 8% if the stimulus passed (major demagogue point), and gub’mint reports say that only ten percent of the original $787 billion stimulus has been spent, yet the Congress wants to expropriate another $155 billion to ‘save or create’ more jobs??!

    This hope-n-change is not only mendacious, it’s a slush fund.
    .

  3. eaglewingz08 says:

    I keep telling the Obama Administration that they should have claimed they created or saved 126 million jobs. Why limit the stimulus to a measly two to three million saved or created jobs? Time to think outside the box.

  4. Tater Salad says:

    Wow! What a math-a-ma-tician?? Can someone tell us what “saving jobs” means and please, give everyone just a small, transparent clue what the real agenda is except your desire to transform this country from Free Market to Socialist. What a moron! We don’t want entitlements Mr. President, we prefer to have a job, make our own choices in life and leave you to drink beer in the rose garden. Do you even know how “stupidely” you sound by saying you saved 2 million jobs? Give us a break and resign.

    2 million jobs saved? What did they do, just pick a number out of thin air? 10%+ unemployment is still 10%. Add all the people who have given up and all the people who have run out of unemployment, the number is much greater. Probably closer to 18% from my figures.

    • proreason says:

      That little experiment with basing their claims on “facts” and “data” wasn’t working out very well.

      Much better to have the Lies be completely disengaged from any information about the Lies.

      That way, we aren’t distracted by the little issues with data that seem to keep cropping up.

      But they don’t pick the numbers out of thin air. They poll first to see what the most effective numbers are. It’s all very scientific. Kind of like climate science.

  5. proreason says:

    “Never mind that this money that is pumped into the economy is simply money that has moments before been pumped out.

    Unless it was borrowed or printed. Which is even worse for the economy.”

    That’s it.

    The Obamy Stimulus: “Ladling water from one end of the tub and pouring it in the other end”

    • Rusty Shackleford says:

      Remember that old joke about dumb blondes?

      She asks, “Can I use my MasterCard to pay off my Visa?”

      Or, years prior, “He takes money from his left pocket and puts it in his right and calls it a profit”

      Yup…journalists are constantly attracted to the shiny things and think they are all new, never-see-before items. Nothing new under the Sun. It’s all been done and seen before. The only thing new is the people. The ones who never read history; Hence, never learn from it.

  6. canary says:

    Reuters need to hire some reporters who know math, instead of political science.

  7. Liberals Demise says:

    The 10% unemployed aren’t cheering but the lies keep coming.
    “WE” the 10% applaud the continued use of the same old lie.
    Here it is, “What is the sound of one hand clapping?”

    Here is to hoping you get the clap!

  8. proreason says:

    I’m beginning to think that what they really teach in Political Science majors today is the art of lying.

    Lying is the only thing these people seem to be good at.


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