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Obama's math shows more job losses if his plan works

By Jon Ward on Jan. 8, 2009 into POTUS Notes

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President-elect Barack Obama today criticized the Bush administration's response to the recession as he pressed for Congress to act swiftly on his stimulus plan.

 

"Now, I understand that some might be skeptical of this plan. Our government has already spent a good deal of money, but we haven't yet seen that translate into more jobs or higher incomes or renewed confidence in our economy," Mr. Obama said.

 

Mr. Obama has said repeatedly he wants to create or save 3 million jobs. But on CNBC yesterday, he said the U.S. might lose 5 million jobs next year. 

 

"I do feel confident that we can create or save three million jobs. We've already lost at least two. We're going to get a jobs report at the end of this week which probably will indicate we've lost at least another half million jobs. And, you know, if we start seeing three, four, five million additional jobs lost next year, that's going to be a crisis that we haven't seen in a very long time, and we've got to nip that in the bud," he said.

 

But if you add up Mr. Obama's numbers, it appears he's saying that if his plan succeeds, the U.S. could still lose two million jobs, which is the same number lost under President Bush.

 

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There are 3 Comments

reader2551

Well the problem is that the numbers do not add up. I don't care for his plan because it is the same plan as aways; throw money at the symptoms until something happens. We just watched the govenment spend $350 billion and no real progress. Now everyone wants a piece of the pie but there is not enough pie to go around. At what point does the madness stop? Obama's plan of infastructure projects is not the answer because our society has changed since the great depression so providing the same solution is not going to get us out of this. There is no quick fix for this mess. We are going to have to go though this and come out on the other side stronger and hopefully smarter. We cannot spend our way out of this mess. Spending money we do not have is in large part of what got us to this point. Another point is that we are going to eventually have to pay for all the money the government is spending. Do we put this on our children and their children? How can we as a nation be so irresponsible?
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Benj

I am in basic agreement with the above, but believe we should reevaluate a couple of points. More dangerous than the meaningless spending and the monster deficits it creates is the fact that this is a government buy-out of the private sector. The feds now own the banks, and are moving into industry. The Soviet model failed there, and it will fail here. Additionally, all Marxist schemes only function with maximal oppression. So good-bye capitalism and its efficiencies, good-bye liberty, good-bye USA. Also, by way of clarification, FDR's big government make-work projects DID NOT help us out of the depression. WW II did. The TVA, the WPA and numerous other Soviet-inspired bureaucracies burned money while wasting anyone that stood in the way with irresistible government force. The romance with Stalin, at that time, can almost be forgiven (though even then it required willful ignorance of his savagery), but how can anyone possibly look with favor on any Marxist scheme today? I thought one of the big lessons of the bloodiest century was that all these strategies fail, and usually at incredible cost (lives, freedom, money, etc.).
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fauxpas

I believe if you add up Mr. Obamas' numbers it doesn't appear he's saying his success would be the loss of two million jobs but the net loss of two million jobs, by adding three million, otherwise, with no action, we'd be looking at a possible total of five million more out of work. It should be called "jobs lost & not replaced" as a new job is very tough to find. Infrastructure is a great start, as it employs people here, in the states and uses our own resources. We are also way beyond due for repairs/upgrades of many public concerns, i.e. bridges, electrical grid, water systems, roadways and the hugely beneficial alternative energy field is an almost limitless opportunity. If we only become free of oil dependence, then we will have achieved much! Finally, rememeber that the $300/350 billion, whatever, donated to the banking industry by the current administration is similarly unregulated and largely unaccounted for. Once they got their hands on the money they flip flopped on its need & intended purpose. I believe that's called "fooled me twice". One cannot compare the two stimuli. Many strings attached "loans" while arguable on their merits, have at least some guarantee of return & much oversight. We also may just see American automakers wake up, get more competitive, produce much needed Hybrid or alternative fuel vehicles and keep a large segment of the economy & workforce rolling, (no pun intended). I have made my infrastructure argument already and my reasons for not holding up this stimulus because of the first bailout turned dividend check money grab. Despicable as that redistribution of wealth is, we must hold them accountable and go forward.
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