Archive for August 2009

Continuing job losses show failure of Patrick administration

August 24, 2009

The Mass. GOP issued the following condemnation of the Patrick administration today, detailing the cold, hard facts that prove the Democrats’ much-vaunted “stimulus” and tax-and-spend policies aren’t alleviating the economic crisis. To the contrary: They’re making it worse.

Here’s the statement from GOP Chairman Jennifer Nassour:

“The Democrats’ risky and expensive economic experiment is not working, as unemployment grows and Democrats continue to bail out irresponsible government spending instead of creating jobs in our state.” Nassour continued: “Governor Patrick has no plan of his own to create jobs in Massachusetts and he is devastating our economy by raising taxes. After all this stimulus spending, we’re still losing 2,800 jobs a month.”

Continuing Job Losses in Massachusetts Show the Failure of the Patrick Administration and Obama’s Stimulus:

Since Obama Took Office, America Has Lost More Than 2.8 Million Jobs. (U.S. Bureau of Labor Statistics, Website, http://www.bls.gov)

Unemployment in Massachusetts continues to increase: “The state’s [Massachusetts’] unemployment rate jumped to 8.8 percent last month, as local firms slashed 2,800 jobs from payrolls in July. The rate stood at 8.6 percent in June.” (Boston Herald, 8/21/09)

A prominent group of Wall Street economists, academics, and central bankers from around the world recently stated the stimulus is unsuccessful: “While stimulus was needed, they said, it came too late and wasn’t optimally designed. For instance, some of the administration’s spending programs haven’t been implemented quickly. Economists are highly uncertain about whether fiscal stimulus gets much bang for the buck. Obama administration economists estimate that a 1% increase in government spending causes a 1.5% increase in broader economic output. Some private economists say that’s too high an estimate.” (Wall Street Journal, 8/24/09)

The Success of the Stimulus Cannot Be Measured:

Jobs “saved” cannot be quantified: “State officials can’t say how many jobs they’ve created or saved with the whopping $2 billion in federal stimulus cash already spent, blaming baffling top-down orders from federal officials.” (Boston Herald, 8/14/09)

Even Jeffrey Simon, the head of the office in Massachusetts charged with overseeing the federal stimulus funds, is frustrated and unable to calculate the exact number of jobs created: “Jeffrey Simon, who heads the office charged with overseeing the federal stimulus cash, blamed ‘evolving’ federal guidelines. ‘We’re on version three now of directives from (federal officials),’ Simon said during a legislative hearing yesterday on the spending.” (Boston Herald, 8/14/09)

“Shovel-Ready” Projects Are Not Receiving Funds at the Local Level:

“Jeffrey Simon, the Ipswich man appointed by Patrick to oversee the proper use of Massachusetts’ share of American Recovery and Reinvestment Act (ARRA) funds, summed it up pretty well in a recent letter to city and town officials: ‘After careful review of the legislation and receiving guidance from Washington over the past five months, it has now become clear that the final ARRA bill that emerged from Congress contained much more programmatic funding and far less funding for infrastructure and municipal projects than originally anticipated.’ In other words, after compiling lists of “shovel-ready projects” that might be funded with the stimulus money, mayors and town managers are being told to forget about most of them. (Eagle Tribune, 8/22/09)

A Majority of Americans Think the Avalanche of new Federal Aide Has Cost Too Much and Done Too Little to End the Recession:

“A USA TODAY/Gallup Poll found 57% of adults say the stimulus package is having no impact on the economy or making it worse. Even more -60% – doubt that the stimulus plan will help the economy in the years ahead, and only 18% say it has done anything to help improve their personal situation.” (USA Today, 8/17/09)

The Stimulus May Be Failing to Create Jobs in Massachusetts, But It Will Create Jobs Overseas:

“The building was leased, the press alerted, and the state had pledged millions in support. Boston-Power Inc., the high-tech battery maker in Westborough, was ready to accept a huge chunk of change from Washington to pay for a new factory in Auburn. Then, on Aug. 5, the word came down. The company would not get the $100 million in federal stimulus money it hoped for. That funding, and more, went instead to a handful of rivals that included A123Systems Inc. of Watertown, which is building a plant in Michigan to make car batteries for Chrysler. Now, as lawmakers and Boston-Power executives deal with the shutout, chief executive Christina Lampe-Onnerud said without a quick injection of cash, the company will build its new plant somewhere else – perhaps in Europe or Asia. ‘Our issue is that we need to expand production capacity now,’ Lampe-Onnerud said.’ (Boston Globe, 8/23/09)

Recently Distributed Stimulus Funds Going to Foreign Corporations Creating Jobs Overseas:  “Nearly half of the $2.4 billion in federal grant money awarded Wednesday to stimulate the U.S. economy and boost the production of hybrid and electric vehicles went to six companies with ties to places as far away as Russia, China, South Korea and France. … But because so few American companies have the necessary technology, much of the money will initially go toward manufacturing electric vehicle batteries overseas.” (Washington Times, 8/6/09)