Wyoming Liberty Group
Back in April, when the comprehensive GDP data for the first quarter of this year came out, I noted that…
year-to-year inflation-adjusted growth is down. In the first quarter of 2011 the U.S. economy grew by 2.2 percent over the first quarter of 2010. In Q1 of 2012 the year-to-year growth rate is 2.1 percent. If Obama’s recovery policy had worked and put us on a traditional recovery path, we should have at 3+ percent growth by now. We are at the very least one full percentage point below where we should be, provided again that we were on a recovery path. Since the GDP growth rate has actually slowed down marginally, we now have yet another round of GDP data that confirms the utter failure of the Obama administration’s anti-recession policies.
Congress passed the American Reinvestment and Recovery Act, known as the Stimulus, in February 2009. Originally meant to hand out $787 billion tax dollars to stimulate the economy and create jobs, the amount rose to $840 billion for 2012. Although laden with utopian promises of milk and honey, the result of redirecting billions of dollars out of people’s pockets is continued recession and high unemployment.
The GDP data for 2011 is out. It is bad news for the American people. And it is scathing evidence that Obama’s and the Democrats’ big-government spending policies, including the ARRA “Stimulus bill”, have been a complete disaster and a reckless waste of money.
Wesley Mouch, phone your office.
In case you haven’t noticed, Solyndra is just the tip of the iceberg. The business model du jour seems to be:
- Start a company with some great green mission, say, to make solar panels or install chargers for electric vehicles.
- The less practical the better, because the less likely you are to get bank or venture capital funding, the more likely you are to get subsidies.
- Have someone with lots of influence with the government on your board.
- Give lots of money to Democratic Party candidates.
- Get a subsidy.
- Go bankrupt
If private businesses wasted money the way government does, they would not only go bankrupt at Autobahn speed, but its executives would also end up in jail. It is, after all, illegal in this country to handle private money recklessly. If you are the government, on the other hand, all you have to do is hide your complete lack of accountability, responsibility and business plans in a wrapping paper of good intentions. The latest example comes from Maine, where a “Green Energy Alliance” got millions of stimulus funds – and blew it all in less than two years. The Portland Press Herald has the story:
Next Thursday—perhaps—President Obama will deliver a speech that unveils a new jobs plan to put American people back to work (etc., etc.). Although Wyoming has far lower unemployment than most states, it’s important we pay close attention to the Obama Administration’s jobs plan, because regardless of what the President says next week, his actions are conveying the real message.
How many private businesses spend $477,000 on each job they create? That is how much it has cost the federal government to create one stimulus bill job in Wyoming. The federal government’s own stimulus tracking site, recovery.gov, reports that as of the first quarter of 2011 the stimulus bill had created 858 jobs in Wyoming, to the cost of $409 million.