There is a lot of posturing going on right now over the effects of the 2009 Stimulus bill and the proposal for a second "Jobs" Bill. Democrats are claiming that while the economy continued to lose jobs it would certainly have been worse without the injection of nearly a trillion dollars of government capital into the system. Republicans are claiming that the stimulus dod not create a single job and that it was an utter waste of tax payers money.
The truth is, as always, somewhere in between.
If you look carefully at the data available you will see that since February of 2009, the economy has lost 3,179,328 jobs while the Obama administration claims to have “created or saved” 638,825 jobs. So for each job created or saved, over 6 jobs were lost. Furthermore, the majority of jobs created or saved are in the public sector. According to the Bureau of Labor Statistics, since the passage of the American Recovery and Reinvestment Act private industry has suffered a net loss of 2,610,000 employees, while the public sector has lost 46,000 employees from its payroll.
So on the one hand, yes, some jobs were certainly saved. It is hard for a trillion dollars to have absolutely no effect whatsoever. Republicans who take a "zero tolerance" type stance on the effects of the Stimulus run the risk of seeming disingenuous. Governor Swarzenegger was right this past Sunday when he claimed-
I find it interesting that you have a lot of the Republicans running around and pushing back on stimulus money and saying this doesn’t create any new jobs, and then they go out and do photo-ops and they’re posing with the big check and they say, ‘Isn’t this great! Look the kind of money I provide here for the state! And this is great money to create jobs, and this has created 10,000 new jobs, and this has created 20,000 new jobs. It doesn’t match up.
On the other hand, most of these jobs are government jobs which in the end are not the kinds of jobs that will actually grow the economy. The first stimulus did not really deliver on the promises made by the administration. Democrats who claim all that was needed was a bigger stimulus are missing the point entirely. It did not stop unemployment growth or promote real job creation. It simply allowed the government to keep more people on its payroll. This is OK as a stop gap measure, but in the long run will not fix anything.
The stimulus was a band aid, and for what they are worth, band aids work. However, what we need now is not another band aid; we need a new policy that is focused on growing the private sector and starting the real engine of the economy.