In my AIP column today, I discuss the possibility of a second stimulus. Even though Barack Obama says he’s not interested right now, many others are, including Laura D’Andrea Tyson, one of his economic advisors. Instead of a second stimulus that would only send more money down the drain, we should cancel the remainder of the first one and instead implement the ideas we know will jump start the economy create jobs. Here’s a portion:
Back in February, President Obama signed his stimulus bill into law. At the time, he declared that the $787 billion boondoggle was absolutely necessary to prevent the U.S. economy from going over the edge and into the abyss and becoming a catastrophe. With the so-called “stimulus,” the president promised the unemployment rate would top out at 8 percent. Without the stimulus, he warned that the unemployment rate would hit 9 percent. The stimulus plan was implemented and six months out, the unemployment rate is now 9.5 percent and climbing. Even President Obama has had to admit that the worst is not yet over. He now is warning the American people that the unemployment rate will reach and probably exceed 10 percent. So much for his promise that the stimulus would keep us from going over the edge.
It’s clear this bill is not creating the jobs this country needs to get us out of the economic hole we have found ourselves in, even though the president has tried his hardest to perpetuate the charade that it is working. He said on July 1st that since the bill was designed to make sure state governments did not lay off teachers, firefighters, and police that it did its job. That is clearly untrue based upon the reports that police and teachers are being laid off right now in cities all over the country. President Obama was trying to put a happy face on a clearly worsening situation, hoping that Americans fail to notice that the stimulus bill is not the solution he advertised it to be.
So far, much of the money is being used incorrectly. According to a new report form the Government Accounting Office, the vast majority of money sent to the states is being used to pay for Medicaid and to pay down their deficits. Even the money that has gone to infrastructure work such as highways has been spent on repaving projects that don’t require a lot of workers.
Now that it has become clear to those who are willing to see the truth that the stimulus bill is failing to do what Obama said it would and, according to Mitch McConnell, is costing us $100 million a day in interest alone, what solutions are the brilliant minds who proposed the stimulus bill in the first place now recommending? Can you believe they are actually saying we need a second stimulus bill? Laura D’Andrea Tyson, advisor to President Obama, said the first one was “a bit too small.” Apparently, failure the first time around simply is not good enough for them.
Read the rest and leave a comment if you’re so inclined, whether here at Wizbang or at the column itself. While you’re at AIP, be sure to read all the other great columns and blog entries. Ed Morrissey also writes about the stimulus as well and says that it only stimulated existing government jobs. Lorie Byrd’s column from yesterday about American Entrepreneurship is a really good one. TJ Brown writes about the lessons learned from the G-8, and it’s not that the president likes to ogle other women’s derrieres.