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4 MILLION JOBS
“LOST AND DISLOCATED”
Making No Difference:
4 Million Jobs “Lost and Dislocated”
Across America, people are out of work. From New York to Los Angeles; from Seattle to Miami – Americans
have still not seen the job growth promised under the $787 billion stimulus passed in February. Promising
that it would provide an immediate boost to the economy, the Obama administration has instead presided
over escalating unemployment with no real solutions for creating jobs.
Since passing the stimulus, the Obama administration has taken every opportunity to take credit for “saved
jobs” in the economy, even though there is no way to measure “saved jobs.” The term itself is unknown
even to the Bureau of Labor Statistics, the office that measures the unemployment rate. Search economics
textbooks across the country, and you will find one common theme: there is no such thing as a “saved job.”
Taking credit for “saved jobs” contrasts with the administration’s promise of unprecedented transparency
and accountability, not to mention honesty and responsibility.
As the Obama administration has toured the country searching for working Americans whose jobs they can
claim they saved, the economic reality is clear: unemployment is 25% higher than what the administration
claimed it would reach under the stimulus. Rather than creating jobs, the stimulus diverted money from
taxpayers into a bureaucratic boondoggle with no real job growth to show for it.
The administration has claimed that the stimulus “saved or created” at least 1 million jobs. But there is no
guarantee that the government actually creates a job when it spends stimulus money. There is no way of
knowing whether a worker or a company that is engaged in a stimulus project would have without work or
engaged in some other activity. But we do know that as the economy picks up, those doing work on
stimulus projects will not be available for more productive private sector activity. The greater the number
of these dislocated workers, the greater the challenge of finding work for them when the stimulus money
runs out. Thus every time you hear the stimulus has “saved or created” a job, then you know what the
latest figures are on dislocated workers. The latest word from the White House was that the stimulus
package had “saved or created” 1 million jobs. When combined with the 3.2 million jobs lost since
February, the total number of jobs “lost and dislocated” under the stimulus is more than 4 million.
The best way to reach the end of this turbulent road is to put our faith back in American businesses and
entrepreneurs, not in more government control and more centralized power financed by borrowed money.
The economy grows best when government bureaucrats do not pick winners and losers and spend future
generations’ money on failed programs.
Vince Haley
Vice President for Policy
American Solutions
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© American Solutions 2009
INTRODUCTION
“One can search economic textbooks forever without finding a concept called ‘jobs
saved.’ It doesn’t exist for good reason: how can anyone know that his or her job
has been saved?”
—Dr. Allan Meltzer
As you travel across the country, you can see numerous Recovery Act project
signs that suggest the stimulus is working. But press releases disguised as
progress indicates nothing about job creation or the effectiveness of a $787
billion, government-controlled intrusion into the economy. Stimulus “success
stories” from the Obama administration can be grouped into several areas.
Broken Promises are those statements that projected positive impacts from the
stimulus that never came to fruition.
Reality Checks are wake up calls about how bad the economy has continued to
be, despite the massive stimulus.
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© American Solutions 2009
JANUARY 2009
Unemployment Rate: 7.1%
11.6 Million Americans with No Jobs
BROKEN PROMISE - Unemployment rate will peak at 8% if stimulus is
enacted. (WH, 1/10)
BROKEN PROMISE - Stimulus money will “go out the door immediately
and go directly to job-creation” (WH, 1/28)
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© American Solutions 2009
FEBRUARY 2009
Unemployment Rate: 8.1%
12.5 Million Americans with No Jobs
BROKEN PROMISE - President Obama: If we “drag our feet and fail to
act, this crisis will turn into a catastrophe. We’ll continue to get
devastating job reports like today’s – month after month, year after
year.” (WH, 2/6)
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© American Solutions 2009
MARCH 2009
Unemployment Rate: 8.5%
13.2 Million Americans with No Jobs
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© American Solutions 2009
APRIL 2009
Unemployment Rate: 8.9%
13.7 Million Americans with No Jobs
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© American Solutions 2009
MAY 2009
Unemployment Rate: 9.4%
14.5 Million Americans with No Jobs
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© American Solutions 2009
JUNE 2009
Unemployment Rate: 9.5%
14.7 Million Americans with No Jobs
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© American Solutions 2009
JULY 2009
Unemployment Rate: 9.4%
14.5 Million Americans with No Jobs
REALITY CHECK - Vice President Biden: “The truth is, we and everyone
else misread the economy.” (US News, 7/6)
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© American Solutions 2009
AUGUST 2009
Unemployment Rate: 9.7%
14.9 Million Americans with No Jobs
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© American Solutions 2009
SEPTEMBER 2009
Unemployment Rate: 9.8%
15.1 Million Americans with No Jobs
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© American Solutions 2009
OCTOBER 2009
Unemployment Rate: 10.2%
15.7 Million Americans with No Jobs
REALITY CHECK - Vice President Biden: We have “known all along that
the recovery was going to take a long time” (WH, 10/2)
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© American Solutions 2009
REALITY CHECK - 558,000 More Unemployed Americans in
October (BLS)
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© American Solutions 2009
NOVEMBER 2009
Unemployment Rate: Hope for Change
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© American Solutions 2009
DISTORTION - Administration defends errors by claiming purpose
of the stimulus was “to create jobs, not count them.” (WSJ, 11/4)
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© American Solutions 2009