Did the stimulus plan fail? Why is unemployment still on the rise?

First, lets draw a bright line distinction between the status of a program or a policy and the status of the administration. Rush Limbaugh was the first widely listened-to figure to wish for the failure of Barack Obama as president, and his message was quickly echoed by other conservative talk-show hosts like Glenn Beck, Michael Savage and, near to our studios, Richmonds Doc Thompson.

While failure in the broad sense is a matter best left for history, which is to say that talking about the failure or success of the Obama administration today is more a matter of opinion or perspective and less an analysis of the facts, we can certainly look at progress and success of Obamas programs and policies.

More than a million jobs have been lost since the stimulus plan was passed, unemployment is 9.7% when we were promised the stimulus would keep it below 8.0%. That's nearly 1.8 million more jobs lost than Obama promised.

And Cash for Clunkers? Except for Ford, American car manufacturers posted huge decreases in car sales last month. Apparently, we were stimulating Japanese car makers.

Why is it everything with this administration involves them making mistakes, causing unintended consequences, or just plain being wrong?

Tell truth to power. Hear the real story. Think for yourself. Join the conversation at econmilitia.com.

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[1988rogers]

well stimulus did fail in japan according to some reports. i dont doubt that it will fail here in the u.s today!

[EconMilitia]

Japan's economy is a horror story. While we had the tech boom of the 90's, they had what is now called the Lost Decade.

The tech boom resulted in some large part from government spending in defense; the mammoth increase in military spending begot exciting advances in technology and new business practices. That's a stimulus which works.

Social stimulus has little sign of doing the same thing. The New Deal and Great Society programs tend to cause a diminished national ability.

Future episode!

[1988rogers]

would you say that the two invasions of iraq and the invasion of afghanistan helped to create jobs during the bush adminstrations?

[EconMilitia]

We have no data to support or refute the assertion. Defense spending tends to benefit the economy, but it's not known to us if the programs under Bush were tech-based or primarily personnel.

Certainly, the 2001 tax cuts helped stimulate the economy, and defense spending after the 2001 attacks in New York and Arlington helped to provide a sense of stability. That stability was not well established, though, and seems to have been fleeting.

[1988rogers]

yes. I know what you mean. during ww2, the war helped creat jobs and take the u.s out of the depression.

[EconMilitia]

Worse, social programs a fraction the size of the various Obama plans likely prolonged the Great Depression. While it's foolish to say the war was caused by those programs, it would take a staggering effort to right the economy should the Obama plans become reality.

[keeneye44]

People in this country have gotten used to a free ride and its hard to kick them off the bus after several miles. They are jobs out there, its just that Americans just dont seem to be hard workers anymore. And those that have business will hire cheaper labor as in illegals but in reality they seem to work better with less trouble than Americans. Lets face it Americans today have become whiny little crybaby's who think the world owes them something.

[ExtractCarrot]

I believe there are more factors adding to the unemployment rise like human over-population, automation and greedy human nature. Companies are laying off too many employees, just so the highest executives can earn even more money. Also I think that it is wrong to believe that an economy should always be growing. It needs it ups and downs, recessions and even depressions, in my opinion should happen once in a while.