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Wednesday, June 10, 2009
Donald Lambro :: Townhall.com Columnist
White House Offers Soft Math, Sleight of Hand
by Donald Lambro
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WASHINGTON -- For a president who promised that his actions would be the most transparent in U.S. history, key details in Barack Obama's economic-stimulus program have been frustratingly opaque.

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Some might call them invisible or illusionary, certainly slippery, maybe even tricky.

"Does anyone really know how many jobs the stimulus has saved or created? Does anyone know how much stimulus money has actually been spent?" House Republicans asked Monday.

Not with any precision. President Obama and his administration throw out a lot of big, impressive numbers: We will spend $800 billion to "save or create" 3.5 million jobs. But it turns out the numbers and goals often come with a lot of mathematical caveats, definitional contingencies and narrowly proscribed, convoluted loopholes and escape hatches.

"The truth is, even the Obama administration isn't able to say for sure how many jobs the stimulus is saving and/or creating," ABC News bluntly reported last week.

"With its promises to 'save or create'" so many jobs, the news network said, "the Obama White House has set a fuzzy bar for itself; no one will ever really be able to say whether it's been cleared."

Vice President Joe Biden's chief economist Jared Bernstein says it's impossible to say how many projects approved by the administration have really gotten under way because "it's such a moving target."

For example, take the jobs number. The White House said at the end of May that the program had saved or created nearly 150,000 jobs. But that's almost impossible to verify because the jobs calculation is actually based on estimates of how poorly the economy and the jobs picture might have been if the stimulus had not been enacted.

And what about this so-called "saved jobs" concept? That's a very tricky number open to all kinds of mathematical Ponzi-scheme configurations.

"The country has lost 1.3 million jobs since February, a figure the Obama administration says would have been far higher if not for the recovery effort," wrote White House reporter Charles Babington of the Associated Press. Apparently, you can save all kinds of jobs with that kind of soft math.

So what about that 150,000-jobs number? It turns out that these are not necessarily long-term, full-time jobs. Many, if not most, will end when the public-works money runs out and the project is completed.

After last Friday's unemployment numbers showed the jobless rate had jumped to 9.4 percent in May, and a Gallup Poll found public support for Obama's handling of the economy slipping, the White House said it was going to speed up the stimulus expenditures. Just how it would do that was unclear, but officials said it would "save or create" 600,000 jobs in the next 100 days.

Not full-time jobs necessarily but temporary part-time jobs. Or as Jared Bernstein told CNBC Monday: "The 600,000 jobs are full-time equivalence, meaning that if there are two part-time jobs, they count as one full-time job."

Then there is the question of how much of the $800 billion in stimulus money been spent so far? When pressed to come up with hard numbers, Bernstein told reporters Monday: "We're up to about $135 billion in terms of obligations." Continued...

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About The Author

Donald Lambro is chief political correspondent for The Washington Times.

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Not a profit
Seems a tad bit slippery here in how the calculation of jobs is done by the Labor Department. From what I see two part time jobs equal 1 full time job or do them in the count. Though even if a lot of part time jobs what are they going to be private sector or public sector? I seem to sense that this is inflated for in Orlando there are fewer jobs in the service intensive economy. Is the 800 billion for 3.5 million jobs for actual jobs or is an earmark that will take out part of this money.

How can this administration claim they will save jobs when ceremoniously they have shown hostility to Business large or small? There is more emphasis to ensuring Union jobs.

As a lot of these programs being lined up as summer jobs and short term employment? That is not a solution to the needs of jumpstarting the economy. Business’s need to trust that they will have control of there planning process. The action of the Government take over of Auto and Banking industry does not provide a good marketing point to investors of private industry.

Businesses depend on ROI (return on investment) this medium to long term process is key to making profit. This may involve capitalization for new tooling for products being ramped up for manufacturing or a product sales introduction campaign. The private sector builds in dynamic planning to adapt for turns of inventory, labor training, raw material availability, manufacturing scheduling and planning.

The Obama administration does not seem to understand that market share is only part of the combination of commerce. They should have understanding of what is required to produce products not follow the guide line of the new Albatross that is know as GM.

It's obvious....
they are spending it. Just look at gas prices. They're on the rise again, just like when Bush was president. It's inflation and I would hate to see them spend it any faster. We'd get to $4 a gallon gas again in no time. This Obama is truly a dishonest lout, no less than Bush; telling us what he's doing for the economy when all he's doing is taxing it further into decline. Prepare for further decline when that healthcare bill gets passed.
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