According to a new study by Ohio State economists Timothy Conley and Bill Dupor concludes that the Barack Obama Stimulus program from 2009 may have saved 450,000 state and local government jobs, but destroyed one million private sector jobs in the process. Known as the American Recovery and Reinvestment Act, ARRA, the program was promised to stem the rising unemployment following the financial crash in September, 2008. The Obama administration trotted out endless officials from the White House saying that the nearly $1 Trillion dollars in Federal stimulus would keep the unemployment rate below 8%. Not only did the rate exceed 10%, combined with the long-term unemployed and under-employed, about one in four adult, working-age Americans either have no job or are barely working just to make ends meet.

barack obama stimulus

Most of the stimulus money went into propping up state and local school systems, as well as help propping up state Medicare outlays. Less than 10% went for building highways, bridges, etc, those much talked about shovel-ready infrastructure. The ARRA was promised to “save or create” some 2 to 3 Million jobs. But according to this latest study, the number is much lower, around 443,000 government jobs, most being just temporary jobs at that.

The counter-effect of the ARRA stimulus program was the loss of some 772,000 HELP service jobs. HELP standing for Health, Education, Leisure and Professional. In the area of Goods-producing, the loss was 362,000 jobs. In other words, the Obama stimulus was an utter failure, as others and myself have been saying all along. The economy is still mired in uncertainty and volatility. Today′s housing news on new home starts shows a major decline in the past year of around 25%. The housing sector has always been the bell-ringer for the entire consumer market.

The new study published by Ohio State economists Timothy Conley and Bill Dupor confirms what we of the Austrian School of Economics have known all along. That the stimulus program of Barack Obama, the American Recovery and Reinvestment Act of 2009, not only failed by producing only some 450,000 temporary state and local government jobs, but actually made the recession worse by costing the private sector some one million long-term jobs. Way to go, Obama, Nancy Pelosi and Harry Reid. Who in the right mind would give these people another shot at running the nation?

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A Verdict on Obama ‘Stimulus’ Plan

Ohio State ARRA Study

The Obama record: 450,000 government jobs saved, 1,000,000 private sector jobs eliminated