This morning, the White House reported that President Obama's stimulus package has created or saved 650,000 jobs -- of course, this time the Obama Administration promises that the new figures will be "more accurate" than in the past. As for the jobs saved or created, the administration based its finds on roughly $150 billion in spending from the $787 billion stimulus package. These "more accurate" numbers are taken from state reports and private companies. The White House did note that the actual number of jobs created thus far is "likely closer to 1 million" because this report looked at only $150 billion of the $339 billion invested in the American Recovery and Reinvestment Act funds spent.An administration economist told CNN "We're solidly on track to create or save 3.5 million jobs by the time this program winds down." Of course, this is the administration that saw its stimulus overseer say on October 29 that the administration overstated the amount of jobs created or saved thus far by "thousands" thanks to a faulty count. I'm sure the faulty count can be blamed on some holdover from the prior administration, so things are all good, right? Sorry, but what concerns me is the fact that the administration believes we will now see a "pretty good degree of accuracy." While Robert Gibbs (White House spokesperson) tried to downplay the mistake by attributing just 4,000 to 5,000 jobs to the mistake, the Associated Press found job counts were "more than 10 times as high as the actual number of paid positions; jobs credited to the stimulus program that were counted two and sometimes more than four times; and other jobs that were credited to stimulus spending when none was produced." Sorry for the long quote, but this was in what the AP called a "limited review." What would the stats have been if a thorough review was conducted?
I am not here to bash the current White House for its counting mistakes (although the mainstream press won't skewer them like they would have the past regime), I am a bit concerned that people will not take this news with the grain of salt that it needs. Much like the Gross Domestic Product's (GDP) 3.5% growth, these numbers have been bolstered by a massive stimulus package. Now, please don't get me wrong -- I am glad that it appears the economy is turning around. However, let's not lose perspective of the fact that the U.S. is still clawing its way out of a rather pronounced recession. There is always an opportunity for us to slip back into the same doldrums from which we have emerged. Maintain perspective, what if these jobs numbers are inflated again thanks to faulty counting? I do hope that the growth continues, but I also hope that the growth is accurately portrayed.
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Reader Comments (Page 1 of 1)
10-30-2009 @ 5:55PM
clikdawg said...
' ... the Associated Press found job counts were "more than 10 times as high as the actual number of paid positions; jobs credited to the stimulus program that were counted two and sometimes more than four times; and other jobs that were credited to stimulus spending when none was produced." '
It's like body counts: As the number goes up the reporting chain, every functionary along the way adds a body (or job) or two ... or three ... or ...
As T.E. Lawrence said about his own renown, everybody would be a famous and popular major general if allowed to write their own press releases.
10-30-2009 @ 6:31PM
clikdawg said...
Sorry, should have read: "unverified press releases" -- verification being a task no longer interesting to or undertaken by our "journalists" ... and willfully discouraged by recent Administrations.
10-30-2009 @ 8:05PM
Mark said...
HOW TO REALLY GENERATE MILLIONS OF NEW JOBS!
The 1977 job tax credit program included a few of the incentives in a so far ignored Human Investment Tax Credit (HITC) program aimed at generating up to 6 million jobs and launching perhaps 4 million entrepreneurs. The 1977 program proved it can work. That stripped down version generated 900,000 jobs - 20% of the jobs created that year!
Download the 2009 version free at: http://www.aesopinstitute.org
Congress should fine-tune and pass the 2009 HITC program without delay!
Another path to millions of jobs is described in the article: 5 Steps to Revive the Auto Industry and the Economy - on the same website.
It outlines revolutionary new technology that opens paths to cars that need no fossil fuel or recharge. Advanced versions can later turn parked cars into power plants, able to sell power to the local utility.
The technology is not in the textbooks and will be greeted with extreme skepticism and disbelief.
However, independent laboratory validation of one remarkable breakthrough has taken place at Rowan University. It produced far more heat than can readily be explained by existing science, clearly suggesting a new source of energy is involved. The experiments should be repeated at other laboratories.
The Rowan validation began the process of proving that new technology can allow a barrel of water to replace 200 barrels of oil!
It can change what is currently believed about energy and help to revive the economy.
10-30-2009 @ 11:18PM
Beltway Greg said...
Let's try this number on for size.
1 Bush fed up 1 world and Obama is trying to save 1 world.
10-31-2009 @ 1:15AM
rossavich said...
all the money ends up with the government through taxation... so big deal.
10-31-2009 @ 10:14AM
Steve said...
This apparently is how a transparent administration works, tell one lie and keep adding to it, then deny the origonal lies and you have a chicago truth.