Archive for May 11th, 2009

Less than one month into the new administration of Barack Obama, Congress divided by party affiliation passed and Barack Obama signed into law, the $787 Billion  American Recovery and Reinvestment Plan of 2009 or as coined by various politico’s and the press, the stimulus plan.

Many economists are now indicating that we are at the beginning of the end of the recession which began in October of 2007. The stimulus plan has had little impact on the economy to date. Wall street has enjoyed a rebound of 30% since hitting market lows in March of this year. The market tends to be an early indicator for the economy so it appears that  market forces and aggressive intervention by the Fed in the financial markets are responsible for improvement in the economy to date.

A principal objection to the stimulus package was that the distribution of funds from the Recovery Plan would not be timely enough to provide measurable impact to facilitate the end of the recession. To date Federal agencies as reported on the Recovery.gov web site have distributed $28 Billion of $88 Billion in funds that have been released. Over 90% of the funds released have been for unemployment insurance and medicaid.

The American Recovery and Reinvestment Plan has been touted by Congress, the President and his administration as a job creating  and job saving bill that would save or create three million jobs. The ability to quantify actual jobs saved or created will tend to be far more subjective than objective. What is of note, is that the jobs the stimulus bill will save or create are primarily union jobs.

The jobs that may be created will overwhelmingly be government jobs. Many of those jobs will be union jobs, as will many of the jobs saved by the stimulus package. Many of the saved jobs are in education. Big winners from the stimulus plan include the National Education Association and the American Federation of Teachers who between them represent 5.6 million teachers. The education unions are among the most powerful lobbies in the country.

The American Recovery and Reinvestment Plan is a collaboration between the progressive green movement and the labor movement. Barack Obama is a true believer. He believes that many of the solutions for this nations problems can be outsourced to the green movement and the labor unions. Union membership which has declined consistently for decades in the private sector has increased over the same period in the public sector.

Barack Obama has embraced the progressive agenda advanced by the green movement and the labor unions. The stimulus package rewards these groups handsomely for their support of Obama the candidate during the 2008 campaign. Obama’s affinity for unions has the long term potential to cripple the economy rather than aid in its recovery.

The American Recovery and Reinvestment Plan was passed by a Democrat controlled Congress at a time that few outside the Republican members of Congress, dared to question. It is apparent the Plan has little to do with stimulating the economy and was a fraud perpetrated upon the American electorate by a naive President and a Democrat controlled Congress indebted to special interests.

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