Obama's top economic adviser,claimedthat because of the stimulus:
"We have walked a substantial distance back from the economic abyss and are on the path toward economic recovery. Most importantly, we have seen a substantial change in the trend of job loss."
And Vice President Bidendeclaredat the end of September:
"In my wildest dreams, I never thought it [the stimulus] would work this well."
As President Obama and other Democrats have correctly pointed out many times, this has been a worldwide recession. But if Summers and Biden are right in their assessment of the stimulus measures, one would think that the U.S. economy should be recovering better the many other countries, countries not wise enough to follow Obama's lead of an extraordinary $787 billion increase in government spending. It is also particularly timely to evaluate the spending since Christina Romer, the chairwoman of President Obama's Council of Economic Advisers,told Congress todaythat the stimulus had already had most of its impact on the economy.
So why would more stimulus increase unemployment? Spending almost a trillion dollars on various stimulus projects means moving a lot of resources from areas where the private sector would have spent it to the public sector thus eliminating the jobs many people currently have.
The unemployment data from other countries raises serious questions about the large government-spending program, especially since the U.S. program that was primarily sold as a good way to create or save millions of jobs. With the Obama administration and Congress already talking about possibly providing another $200 billion to extend these government-spending programs, these data raise real questions about the efficacy of this spending.