Friday, September 04, 2009

How’s that 787 Billion Dollar Stimulus Package working for Ya America?

[C]onsumer spending accounts for 70% of GDP growth—Peter Cohan
Here’s a conundrum for ya, America needs consumers to spend in order to support this consumer based economy everyone knows that right? Also people need jobs in order to earn money to spend which in turn supports this consumer driven economy. Ironically American jobs are what is needed to stimulate this consumer based economy. (see related story)

Now that idea must be a surprise to someone in American because for decades corporations (that went international) outsourced American jobs to foreign countries because the American worker was too costly to their bottom lines.

Understand, the American worker was just not allowing corporations to make the profits that a third world low wage non-union worker in a nation with no standard of living would allow.

Now understand this, consumer spending accounts for 70% of Gross Domestic Product growth in America. Combine that with the fact that Americans are unemployed or underemployed due to decades of outsourcing American middle class and technical jobs and the in-sourcing of over 40 million Illegal workers which serves to undercut wages for the American worker in this country. Corporate profits increased at the expense of the American worker and at the expense of the American economy.

Before a consumer can be a consumer she or he must be a worker or an earner. If a worker has no job or if a worker has a job that doesn’t pay a living wage a worker can not be a consumer. It’s the whole, for the lack of a nail scenario:

"For lack of a nail, a shoe was lost.
For lack of a shoe, a horse was lost.
For lack of a horse, a rider was lost.
For lack of a rider, a battle was lost.
For lack of a battle, the kingdom was lost.
All for the want of a horseshoe nail."

The American economy is failing for the lack of jobs, private sector jobs. The 787 Billion Dollar stimulus package was not used to create one American private sector job and it will not be used to create one. 14.5% of the money has been spent but none of it to create private sector jobs. Following is where the money has been spent.
Railroad Retirement Board: Small chunk of change and unclear where the funds are going.

Social Security Administration: 13 billion spent upgrading computers and one time payments. Not stimulating as there is no direct impact to job creation.

Veterans Affairs: .5 billion spent on upgrading facilities, payments, state grants and benefits to veterans. While not stimulating, entirely justifiable given the neglected veterans in this country.

Department of Labor: 18 billion spent on providing education and worker training to workers and "easing the burden of the recession" by assisting and expanding access to health care. Not stimulating, no direct impact on job creation or tax benefits. Providing education to workers is not the responsibility of the federal government and easing the burden of the recession can create a dangerous precedent of reliance.

Department of Justice: 1 billion spent on providing training, equipment and support for crime prevention including the hiring of additional police offers. Stimulating as it provides jobs to those seeking employment as police officers, however police are the responsibility of municipal governments. In other words we here in Boston should be not be paying for cops in Wichita, Kansas.

Health and Human Services: 28 billion spent on upgrading hospital's IT programs, research and state grants, Medicare payouts. The biggest recipient of taxpayer moneys has also the most vague and hard to navigate web-page, giving no clear answer as to what the money is being spent on.

According to the information there, it appears that the money is being used to advance Obama's theory regarding electronic record keeping and the health industry. Whether or not upgrading our hospitals will impact us beneficially is to be determined, but this appears to be non stimulating spending and egregious spending at that.

It is also worth mentioning Department of Education which has spent 14 Billion on state grants, school modernization, Pell grant funding and possibly preserving education jobs in states where funding is critical. Largely not stimulating as most of the money is being used on things that simply have no impact on our economy what so ever and do not belong in a federal stimulus package.

Total spending as of today: $84,587,463 or 14.5%!
-- Arkady Kamenetsky (see source)
No matter what the Soetoro administration says if no jobs are created there is no real economic recovery. Yet Vice president Joseph Biden attempts to give the Soetoro administration some positive news after a brutal August of Obamacare Health Care townhall meetings. Biden did his best Mohammed Saeed al-Sahaf impression. And just who is Mohammed Saeed al-Shaf? If you don't remember you'll have to wait. (see 1:08min video)

Come on Mr. Vice president the last time you Liberals wanted us to believe in a consensus you told us Global Warming was going to destroy the planet. According to a consensus of scientists now the earth is not warming it is cooling. By the way, there is no censensus that the earth is warming and neither is there any consensus that your stimulus package is working Mr. Vice president! To the contrary, according to Congressman Paul Ryan the stimulus package is not working. Only 3% of stimulus money is designated to create jobs in the first place. And Vice president Biden is doing his best impression of Mohammed Saeed al-Sahaf,Iraqi Information Minister a.k.a. Baghdad Bob. Yet according to Rep. Ryan the stimulus is not working. (see 3:33min video)

You remember Mohammed he was the communications liaison between Saddam and world media. Baghdad Bob, as he was nicknamed, attempted a one man campaign of disinformation suggesting that the United States was losing the Iraq war, he claimed Iraq was winning and American troops never successfully made it to Baghdad. All were blatant easy proven lies. (see 5:27min video)

Here’s a news flash for the Soetoro administration, no jobs no recovery! (kinda catchy in a no justice no peace kind of way) President Soetoro promised 3.5million jobs instead 2.1Million jobs were lost.

The Bottom line for America is, Americans are not going to became consumers again until we are working and we have full confidence and trust that we can work good jobs that pay living wages that are up to our standards.

Vice president Biden should really stop his Baghdad Bob routine and concentrate on creating real jobs for real Americans who are suffering because our government failed to protect the citizens of this nation when they approved all of this outsourcing of jobs to foreign countries at the behest of companies while they refuse to protect America's borders.

1 comment:

  1. The banksters still got bonuses and bail-out
    money. The rest of us get a chance to pay the
    tab for these worthless parasites. Provided
    we even have a job, of course.