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White House Adviser: Stimulus is Working -- But Unemployment Could Grow in 2010
July 02, 2009 2:42 PM
ABC News’ Rick Klein reports: Despite new figures documenting surprisingly high job losses last month, the Obama White House is arguing that the massive stimulus bill the president pushed for is making things better than they would have otherwise been -- even though that’s not readily obvious from the statistics.
Jared Bernstein, chief economist and economic policy adviser to Vice President Joe Biden, said on ABCNews.com’s “Top Line” today that the latest jobs report doesn’t tell the full story.
“That doesn’t mean that our other economic plans are not taking hold,” Bernstein said, “whether you’re talking about financial stabilization; I could talk to lots of signs in credit markets; I could point to retail sales, I can even point to the fact that the Recovery Act contributed $17 billion to personal income last month. I mean these are numbers that are on the books. I can tell you that 20,000 Recovery Act projects have been approved. We’ve spent out, I mean, we’ve obligated $160 billion.”
“So there’s no question our plans are working to offset some of the pain, but the depth of the recession is just obviously very significant.”
Though the stimulus promised quick cash for “shovel-ready” projects, the latest report showed steep job losses in construction and manufacturing.
Bernstein said stimulus spending will ramp up in the months to come -- and said the job losses would have been worse without the spending that’s already taking place.
The problem with that type of analysis is it doesn’t ask the question, how bad would these numbers, especially on the construction side, would be in the absence of the stimulus program,” Bernstein said. “Those [job] losses -- and this is always a hard thing to explain -- but those losses would definitely be greater were these projects not in the system.”
Asked about the possibility of a second stimulus, he said: “I think with the largest stimulus package in the history of this country, 130 days old, it would be premature [to discuss]. . . . Let’s give this medicine a chance to course through this economic patient here and reevaluate as we go along.”
And, despite initial predictions that the stimulus would crest below 8 percent this year if the stimulus went into effect, Bernstein said unemployment appears likely to continue to rise into next year.
“The unemployment rate will likely be higher in 2010 than in 2009, just as it’s ramped up over the course of the year. In that sense you’ve got a tougher labor market,” Bernstein said.
“However, the forecasts are quite consistent in the observation that the economy -- at least in a GDP sense -- should begin to recover later this year. Now from our perspective -- the administration, the president, the White House -- it’s not a recovery until we see robust monthly job growth, month after month. GDP growth without jobs, that’s not how we define recovery.”
“You know -- less bad is not what we’re looking for here,” he said.
Click HERE to see the full interview with Jared Bernstein.
We also spoke with Politico’s Jonathan Martin about the week in politics, including the growing number of Republicans who are calling on Gov. Mark Sanford, R-S.C., to resign his post.
Martin wrote a widely discussed piece this week exploring the finger-pointing and backbiting that’s continuing between former McCain campaign aides, over the subject of Gov. Sarah Palin, R-Alaska.
Watch the full interview with Jonathan Martin HERE.
July 2, 2009 in Congress, Obama Agenda, President Obama, Top Line | Permalink | Share | User Comments (10)
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Just saw Obama's rousing presser in
the rose garden. He's convinced me
that the 22nd Amendment should be
repealed forthwith. Imagine what this
this man could accomplish in the
next 15 years. Just imagine.
Posted by: Trajan | Jul 2, 2009 3:00:38 PM
Yeah, we have more education and health industry jobs. That will help productivity, not. Oh ya, and don't forget census jobs.
Posted by: Huh | Jul 2, 2009 3:18:09 PM
Huh | Jul 2, 2009 3:18:09 PM posted, "Yeah, we have more education and health industry jobs. That will help productivity, not."
Actually, education and health industry jobs DO create productivity. In my state, we are using stimulus money to build healthy new tax payers by investing in school districts, summer jobs for low-income teens, training and community college scholarships. So how does it work?
This focus on an educated work force has attracted new big employers with Family Wage jobs: Bio Science, Health Care, High Tech, and Renewable Energy. Moody's predicted my state will be one of the leading states out of the Recession. What's going on in your state?
Posted by: idahogirl | Jul 2, 2009 4:46:44 PM
The article begins: "Despite new figures documenting surprisingly high job losses last month, the Obama White House is arguing that the massive stimulus bill the president pushed for is making things better than they would have otherwise been -- even though that’s not readily obvious from the statistics."
***************************************
Wow......and the obamanomics team keeps pouring the kool aid for the sheeple drinkers. The economy is CHANGING.....its spiraling out of control....believe in that.
Posted by: socialism101 | Jul 2, 2009 5:51:41 PM
what new education jobs? Where I live many 100s of teachers are losing their jobs. 40 kids to a classroom. Yeah you dems sure did a good job. Thanks.
Posted by: notanobamafan | Jul 2, 2009 9:46:51 PM
7.2% Unemployment Rate on Day One for Obama.
9.5% Unemployment 6 months after Obama.
Businesses hire people when they believe their future will improve and allow them to retain the people they hire.
Business owners see that Obama is a socialist who is destroying the Private Sector on purpose.
Everytime someone loses their job, they can Thank Obama.
Obama is the reason you lost your job.
Business has no faith in Obama.
How's that Hope and Change working for ya with Jimmy Carter Part II?
Posted by: Bill | Jul 2, 2009 11:35:45 PM
Heck, Lets have the great "Stimulator" #2 and see if we can lose 600,000 jobs a month and still stand up and say its getter better though......
Posted by: Mike_C | Jul 3, 2009 12:29:20 PM
President Obama meets Fantasy Island!
This is worse than political spin it's
an Outright Lie.
This massive giveaway that was rushed
through Congress giving no one a
chance to read it is a humungous
Failure! Less than 10 percent of the money has been spent so please tell me
Mr President, how can it be working?
All of thus bogus "happy talk" is
timed to coincide with the 2010
elections next your.
Only proven results will count then,
not empty words!
Posted by: reaganfan | Jul 3, 2009 2:09:45 PM
There is a strange disconnect across the land. Its called the "People Got Laid Off, Their Stock Leaped Upwards In The Stock Market so the Stimulus Is Working...Oh Look, Unemployment Just Went Up, Isn't That Odd" Syndrome. It appears to afflict the upper 1% class and, by extension, politicians... Go figure.
Posted by: jan | Jul 3, 2009 4:02:26 PM
ANY STIMULUS PACKAGE THAT DOES NOT INCLUDE DIRECT BENEFITS FOR BUSINESS IS LIKE BLOWING FRTS IN THE WIND. ONLY BUSINESS CAN CREATE ECONOMIC WEALTH, WHICH INCREASES THE GNP. MAKE WORK JOBS FROM THE FED HAVE NOTHING TO DO WITH THAT. LIBERAL ARTS MAJORS WHICH COMPRISE MOST OP THOSE ON THE HILL HAVE NO CLUE!! NO, NOT A FAT CAT, JUST AN AUTO PARTS DRIVER.
Posted by: Jimbo | Jul 5, 2009 8:37:23 PM
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