Monday, April 26, 2010

Economists Say Government “Stimulus” Spending Has Had Little Impact On The Economy

I’d add the word “yet” to the end of that headline statement given that when it comes time to pay off the deficits and debt created by the “stimulus” spending there will be a huge impact on the economy.

And not a good impact.

NEW YORK ( — The recovery is picking up steam as employers boost payrolls, but economists think the government’s stimulus package and jobs bill had little to do with the rebound, according to a survey released Monday.

In latest quarterly survey by the National Association for Business Economics, the index that measures employment showed job growth for the first time in two years — but a majority of respondents felt the fiscal stimulus had no impact.

NABE conducted the study by polling 68 of its members who work in economic roles at private-sector firms. About 73% of those surveyed said employment at their company is neither higher nor lower as a result of the $787 billion Recovery Act, which the White House’s Council of Economic Advisers says is on track to create or save 3.5 million jobs by the end of the year.

As for those “created or saved” numbers, the nebulous nature of “jobs saved” aside the jobs created measure is the result of cooked numbers. The Obama administration has been inflating jobs numbers by lowering the base line jobs numbers they started measuring from.

That’s like coming in at noon, punching your time clock clock as though you showed up at 8am, and telling your boss you’ve already worked for four hours.