Still think that stimuluspatronage bill wasn’t political?

Then check out an awesome paper on the effects of the ARRA (that’s the porkulus bill) titled “The American Recovery and Reinvestment Act: Public Sector Jobs Saved, Private Sector Jobs Forestalled“, by Timothy Conley and Bill Dupor, both economists, contending the following:

Our benchmark results suggest that the ARRA created/saved approximately 450 thousand state and local government jobs and destroyed/forestalled roughly one million private sector jobs. State and local government jobs were saved because ARRA funds were largely used to offset state revenue shortfalls and Medicaid increases rather than boost private sector employment. The majority of destroyed/forestalled jobs were in growth industries including health, education, professional and business services.

Get it? The democrats basically this bill saved some 450K federal & state jobs – that’s their voter base – at the expense of over a million private sector jobs, which might not even vote for them. So thusly we spend over a trillion – that’s the ARRA with interest – to get a net loss of over half a million jobs. But the donkeys kept their constituents happy-crappy.

Now, I am sure someone will try to point out that it wasn’t this but simply that these people believe government creates jobs, and the jobs it creates are government jobs. Well, thanks a ton. A trillion dollars later I have people that are hostile to me still entrenched, while the goods producing private sector is being told it needs to pony up more cash for them. Can we at least then agree that government spending is not any kind of stimulus spending, but actually destructive to the real economy? Basically we protected big government states from their own malfeasance at the tax payer’s expense, got none of that promised infrastructure, and paid premium dollars for it. Think we will see this on the national news soon?

Comments are closed.

  1. Rann

    Government given more power and money attempts to create more government. It’s not like you can be shocked at this. Annoyed, infuriated, frustrated, sure… but not shocked.

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  2. CM

    Or, if you use another of their models, the Act resulted in creating/saving a net 659 thousand jobs.

    Their conclusion begins:

    Much work on the effects of the ARRA remains to be done. We found, surprisingly, either negligible or negative effects of the Act on total employment

    The most promising avenue in this regard is to allow for cross-state positive spillovers. This might result in estimates of a large positive jobs effect. Suppose, for example, that Georgia received relatively more ARRA aid, which in turn stimulated that state’s economy. If, as a result, Georgia residents’ vacation spending in Florida increased, then the increased vacationing might generate jobs in Florida. Our methodology cannot pick up this effect.

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  3. AlexInCT *

    This is happening long after the effects of all that money flushed down the toilet by ARRA went by, and espite the hostile policies of this administration to anything but the big pro-democrat corporations in the private sector. CM, but then again, I am seeing more and more that you are not bothered much by what’s really happening.

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  4. CM

    This is happening long after the effects of all that money flushed down the toilet by ARRA went by, and espite the hostile policies of this administration to anything but the big pro-democrat corporations in the private sector.

    As the Act was signed into law in February 2009 and those stats I posted are apparently from about March 2010 then that just leaves a 13 month window. Is that the period you’re talking about?
    Which big-democrat corporations would they be, and how do they avoid the ‘hostile policies’?

    CM, but then again, I am seeing more and more that you are not bothered much by what’s really happening.

    Please feel free to provide the details. I’m certainly very interested in “what’s really happening”.

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  5. sahrab

    300,000 Cut… or due to the 2010 Census ramp down? And whats the chanced that those temproray job that were used to fluff the employment figures are now being used to show the Fiscal Responsbility of this administration?

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  6. balthazar

    How about GE? Lets start there. Take a quick look into what they have been up to with full cooperation of the federal government.

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