Tuesday, June 9, 2009

Stimulus Not Actually Stimulating. Big Surprise?

June 5, 2009

Dear Mrs. XXXXXX,

President Obama's $1.1 trillion stimulus package is not delivering the expected economic benefits, even according to the President's own benchmarks. The President projected that his stimulus package would prevent the unemployment rate from exceeding 8%. Today, the Bureau of Labor Statistics announced that May's unemployment reached 9.4%, and economists project that the rate will go even higher in the next several months.

Not only does the unemployment rate exceed the President's stimulus projection, it also exceeds the unemployment rate that the President projected if Congress had NOT approved the stimulus package. According to the President's own numbers, the unemployment rate would not have exceeded 9% if Congress had rejected the President's stimulus package.

Stimulus proponents may argue that more time is needed for the stimulus package to work. However, the following graph shows that the President was claiming that the impact of the stimulus package would be immediate. Not only is the recovery taking longer than promised, the job losses are higher than projected.

The Democrats' fiscally irresponsible stimulus plan has not delivered the promised benefits and has driven us further into debt, which already exceeds $11 trillion.

Click here for the report and please keep in mind the following:

(1) The only change to the President's graph is the insertion of the actual unemployment rate (in red) for the months since the President's signing of the "stimulus" law.

(2) As the graphic displays, the May 2009 unemployment rate of 9.4 percent is HIGHER than the worst unemployment rate the President predicted WITHOUT passage of the "stimulus" law.

Jason Chaffetz Member of Congress

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