John Stossel
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  • November 17, 2009 03:46 PM EST by John Stossel

    Bogus Stimulus

    Kudos to the Washington Examiner.  They’re keeping tabs on the Obama administration’s phony stimulus claims.  They’ve set up an interactive map that documents instances of government exaggeration-- or lies --over how many jobs were “created or saved” by the $787 billion stimulus package.

    The Examiner has found that just over 10 percent of the jobs supposedly “created or saved” are bogus. I’m not surprised.

    Here’s the White House’s reaction, or explanation, or excuse making.

    Here are some particularly egregious examples from the Examiner:

    Sacramento Bee: The California State University system received $268.5 million in stimulus funds and claimed that the money allowed them to save over 26,000 jobs. But when pressed, the University officials admitted they weren't really going to lay off half their workforce, and that in fact, few or none of these jobs would have been lost without the stimulus. "This is not really a real number of people," a CSU spokesman said. "It's like a budget number."

    The New York Times: A $1,000 grant to purchase a single lawn mower [in Arkansas] was credited with saving 50 jobs.

    Tacoma News-Tribune: Of the 34,500 jobs allegedly saved or created by the stimulus in Washington State, 24,000 belong to state teachers already under contract to finish out the school year, whose jobs were never in jeopardy ….

    Atlanta Journal-Constitution: A joint venture [in Oklahoma] that received six military contracts counted the same 10 jobs six times.

    Chicago Tribune: [S]timulus funds were said to have saved the equivalent of 382 full-time teaching jobs -- 142 more than the [Dolton, Ill.] district actually has.

    Chicago Tribune: The city claimed to have saved the jobs of 473 teachers with its $4.7 million education stimulus grant. The [North Chicago] district employs only 290 teachers.

    Greenville News: "The Greenville Housing Authority ‘saved or created’ 118 jobs by use of federal stimulus money, according to the Obama administration. The agency only has 35 employees."

    Even if the jobs really were “saved or created”, that’s not real job creation. There is no new wealth created.  All the stimulus did was shift resources to stimulus recipients, at a hidden cost. That money would have been spent or invested privately by other people if it hadn’t been taxed away.  It’s Bastiat’s broken window fallacy in a nutshell.

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Daniel

There was a chapter in my business stats class when I was at Mississippi State University during the mid `80s. It was titled "Lying with statistics". My professor was a muslium lady from Egypt. She would only announce the title of the chapter. She would not teach this part of the text book. She stated "My god does not allow me to lie or to teach how to lie, if your god allows you to lie then you can read this chapter and learn for yourself". Government should listen to her!!!!!

November 21, 2009 at 10:36 pm

LAD

I remember the Soviet Union releasing these kinds of laughably rediculous economic reports. I'm sad to see what's becoming of America.

November 19, 2009 at 4:18 pm

Tim

Having lived in Chicago for a number of years, I was particularly interested to see how schools in of Illinois are doing with their math skills.

November 19, 2009 at 9:03 am

Kris Rytlewski

If you really want to understand where the $$$ is created from and where it is going, (not just the stimulus $$), google, "The Creature From Jekyll Island" by G. Edward Griffin and watch the 13 consecutive Youtube segments. You will get an education in US Banking & Finance that you will never forget!! We've ALL been dupped for almost 100 years now and the realization of their plan is coming full circle. The USA, United Socialists of America is fast becoming a reality. READ your nations history!!

November 19, 2009 at 1:01 am

JM at the Home of The Masters, - Augusta -

For More On BOGUS STIMULUS, please see the lead story today at 6pm on Augusta's CBS affiliate, WRDW-TV 12 http://www.wrdw.com View the video WED NOV 18, 2009 . Its just one more example of how bad this is.

November 18, 2009 at 10:30 pm

barb givens

John: Health care:1.Report was made that Social security will be out of $ in two years.ANswer: raise $ by creating the cashflow from government sponsored health care....(another shell game; I worked for a contractor; we would give bids to commercial interests; they would take to the bank, get cash for cashflow, and never do the work on the bid; sounds familiar.) Maybe that is why healthcare is SO urgent

November 18, 2009 at 12:53 pm

Mike

bravo!

November 18, 2009 at 12:42 pm

Matt

Way 2 go Stoss! Only if those in the MSM had half of your understanding of economics... No stimulus (even Bush's) No TARP No Freddie and Fannie implicit liability of trillions No possible way of Cap and Tax And no chance in hell of a government run health care system $12 Trillion in debt. Get a surplus first, then we can expand governent- Local government!

November 18, 2009 at 10:53 am

Tom in Maine

typo - you said that just over 10% of the jobs are bogus -- don't you mean that just over 10% are actual? Too bad the MSM is giving the administration a pass on just about every front.

November 18, 2009 at 10:49 am

James

This is the kind of math the wins/steals elections, either indirectly or directly. Sooner or later the electorate won't be able to know the difference.

November 18, 2009 at 8:06 am

Mark

John, I just watched your segment with Bill O'Reilly about the Bogus Stimulus Bill jobs saved. I am living that very illusion right now. I am trying to get an SBA loan. I was told by the banker that the SBA wants one new job for every $50,000 of loan they make. They told me to list XX number of jobs I expect to be created by this loan. I said, "That is ridiculous! I don't expect any." The banker said "I know! But if you want the loan approved, list that many jobs!" The "jobs" are bogus!

November 18, 2009 at 1:59 am

David Stoy

Does it make a difference, regarding wealth creation, that the money was not "taxed away" from anyone but instead was borrowed from the Chinese? That the debt will be paid back someday by printing the money.

November 18, 2009 at 12:51 am
(1 Reply)

SGGroup

I'll bet that a lot of jobs were created in the appliance industry. Just think of all the refrigerators that are needed to store that cash.

November 17, 2009 at 7:15 pm

About this Web Site

  • John Stossel joined FOX Business and FOX News in October 2009. His show, Stossel, airs on the Fox Business Network on Thursdays at 8 p.m. ET

    He is the New York Times best-selling author of Give Me A Break and Myths, Lies and Downright Stupidity. His "Give Me a Break" commentaries take a skeptical look at a wide array of issues, such as education, the economy, parenting, and more.

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