CNS News catches something interesting from The Petulant President’s presser on Monday
Three days after the U.S. Department of Labor reported that the national unemployment rate had ticked up from 9.1 percent in May to 9.2 percent in June, President Barack Obama said that the loss of jobs in the public sector is “evidence” that his $830-billion economic stimulus legislation worked.
“Now, without relitigating the past, I’m absolutely convinced, and the vast majority of economists are convinced, that the steps we took in the Recovery Act saved millions of people their jobs or created a whole bunch of jobs,” Obama said at his Monday press conference.
“And part of the evidence of that is as you see what happens with the Recovery Act phasing out,” he said. “When I came into office and budgets were hemorrhaging at the state level, part of the Recovery Act was giving states help so they wouldn’t have to lay off teachers, police officers, firefighters. As we’ve seen that federal support for states diminish, you’ve seen the biggest job losses in the public sector–teachers, police officers, firefighters losing their jobs.”
Now, to be fair, he is correct: the Porkulus did temporarily save millions of jobs, as the federal government mortgaged the future to simply give money to state governments, along with some private sector groups (that mostly created nothing of lasting consequence). At least FDR’s projects had a lasting impression, having built bridges, roads, and dams, among others. Obama’s “Stimulus” just gave the money away, and all we chalked up was a temporary reprieve from turning into, well, we aren’t quite to Greece yet, so, let’s say, more like Spain.
As federal hand outs to the States end, we see that most States are in poor financial conditions, as the Dead Parrot economy hangs on to the perch, barely moving. If people are still unemployed, if they aren’t spending much, if they aren’t buying big ticket items, States do not capture as much income tax, sales tax, nor property tax. There isn’t as much tax coming from companies, either, nor the associated entitlement taxes. The money just isn’t there. And all this leaves States in a bad position, because all the so-called Stimulus did was provide handouts and mask the underlying instabilities.