Not surprisingly, the claim made by the White House that Obama’s stimulus (porkulus) bill has already produced or saved 150,000 jobs is totally bogus.
This tidbit of reality comes from FactCheck.org:
At President Obama’s April 29 news conference, he claimed that the American Recovery and Reinvestment Act has “already saved or created over 150,000 jobs.” Wait a minute. Isn’t the number of jobs actually plummeting?
According to the Bureau of Labor Statistics, the economy lost more than 1.3 million jobs in the two months after he took office, and it has probably lost at least another half-million in April. The day after Obama spoke, the Department of Labor announced that another 631,000 workers (seasonally adjusted) had filed new claims for unemployment insurance the previous week.
So what 150,000 jobs was Obama talking about?
It turns out the president’s claim is really an estimate of what his economic advisers think the stimulus bill is doing, and not based on any evidence of its actual effects.
We asked the White House for substantiation of Obama’s claim, and a spokesman responded that the figure comes from a recent estimate by the Council of Economic Advisers. “Because the baseline for employment is obviously still strongly downward,” the spokesman told us, “the estimate does not mean that employment has risen by 150,000. Rather, it means that employment is 150,000 higher than it otherwise would have been.” He said the figure is an estimate of people hired to work directly on ARRA-funded projects, plus “jobs created by the tax cuts, aid to the states, and other parts of the ARRA.”
So when the president said his stimulus bill “already saved or created” those jobs, he was just giving an estimate produced by his own economic advisers at the White House. Furthermore, the jobs figure is based on projections done at the time ARRA was passed. Recipients of ARRA spending aren’t required to report until later what they’re doing with the money and how well it’s working, so there’s very little hard data on where the money is being spent, let alone how many jobs may have resulted from the legislation. The CEA incorporated some actual spending reports into its estimate, but that information is not complete.
So yet again, the claim that Obama’s stimulus bill is stimulating anything other than the size of government is disputed and cannot be proven. The facts are the facts, and in this case, they don’t even exist for the administration to make the claim of saving or adding 150,000 jobs from the stimulus legislation.
If Bush had made this claim, the media would be tearing it apart as skeptically as possible, which they should have. However, for Obama, they don’t even give so much as a yawn.
I love the definitive terms the White House uses such as “saved or created,” like they can claim it’s doing one or the other and hope they’re correct since they have no actual data to support that estimate.
Even still, just a rough estimate means that each one of these fictitious 150,000 jobs has cost about $6 million per job. Considering the amount of jobs still being lost, that seems pretty steep for jobs that don’t exist.