I thought the price of inaction was millions of jobs lost, homes lost, and crippling dependence on foreign oil. Thank God we passed the $767 billion stimulus package. Since Obama signed the stimulus into law, the economy has lost more than two million jobs and the unemployment rate has climbed to 9.5% when the White House predicted it would stay below 8% if the stimulus was passed. He said it would create or save three million jobs in 2009. Now he says the package was designed for 2 years. Was he lying in February or is he lying now? Foreclosures are accelerating. The deficit is soaring. And last time I looked, we were still dependent on foreign oil. His lies are continuing regarding healthcare and cap & trade. The result will be disaster.
Homes are being lost at an increasing rate every month since the passage of the stimulus. National foreclosure filings in the U.S. continue shattering records, propelled by mounting unemployment and continued erosion of home values. Filings were reported on more than 336,000 properties in June, the fourth-straight month to see the total topping 300,000, according to RealtyTrac's latest foreclosure report released Thursday. That helped boost the second-quarter's tally by 20% from the year-earlier period, making it the highest quarterly total since the report's first-quarter 2005 launch. When counting this year's first half, one in every 84 homes was slapped with at least one filing, ranging from default notices to bank repossessions. Moody's Economy.com estimates 15 million homeowners owe more on their mortgages than their houses are worth. Barclays Capital, meanwhile, estimates new foreclosures started this year at 3.0 million, with 2.6 million expected in 2010.
The deficit is on pace to reach at least $2.2 trillion in 2009. Only $359 billion more than Obama's estimate. So, his estimate is off almost by the entire deficit for 2008. Last year, in all of fiscal 2008, the deficit was $454.8 billion. That was a record. Fiscal years start Oct. 1. In the first nine months of fiscal 2008, the government spent $285.85 billion more than it took in. In the same period this year, the figure is $1.086 trillion. "That sounds in line with estimates we saw publicly reported earlier in the year," White House spokesman Robert Gibbs said.The White House has predicted the deficit will climb to $1.841 trillion this fiscal year.
"Then there's the argument, well, this is full of pet projects. When was the last time that we saw a bill of this magnitude move out with no earmarks in it? Not one. (Applause.)"
"Millions more Americans will lose their jobs. Homes will be lost. Families will go without health care. Our crippling dependence on foreign oil will continue. That is the price of inaction."
"I believe that legislation of this enormous magnitude, that by necessity we are moving quickly -- we're not moving quickly because we're trying to jamb something down people's throats. We're moving quickly because we're told that if we don't move quickly, that the economy is going keep on getting worse, and we'll have another 2 or 3 or 4 million jobs loss this year."
"Number two, it is expected that we are going to lose about a trillion dollars worth of demand this year, a trillion dollars of demand next year because of the contraction in the economy. So the reason that this has to be big is to try to fill some of that lost demand. And as it is, there are many who think that we should be doing even more. (Applause.) So we are taking prudent steps."
"So then you get the argument, well, this is not a stimulus bill, this is a spending bill. What do you think a stimulus is? (Laughter and applause.) That's the whole point. No, seriously. (Laughter.) That's the point. (Applause.) "
"But let's think big right now. Let's not think small. Let's not think narrowly."
"This plan will save or create over three million jobs -- almost all of them in the private sector."
BARACK OBAMA - FEBRUARY 6, 2009
"I love these folks who helped get us in this mess and then suddenly say, 'Well, this is Obama's economy,'" the president said, pointedly deviating from his prepared text. "That's fine. Give it to me!"
My job is to solve problems, not to stand on the sidelines and harp and gripe," he said Tuesday, his sleeves rolled up, barely disguising his targets as congressional Republicans.
In his weekly radio and Internet address Saturday and in a newspaper opinion piece, Obama argued that the stimulus program was designed as a two-year plan and that it had already halted the economic free fall. Indeed, the Fed now expects that the economy this year will shrink at a slower pace than it had predicted in April.
It hasn't helped Obama, however, that the jobless rate now stands at 9.5 percent, even though his economic team initially predicted that the stimulus would prevent unemployment from going higher than 8 percent.
Obama and his advisers say the recession turned out to be worse than anticipated when they made that forecast in January. Still, 2 million jobs have been lost since Congress passed the stimulus package.
"We had a problem even before this recession, even during periods of economic growth, where the pace of job growth, wage growth, income growth was not moving as quickly as overall economic growth," Obama said before leaving Washington.
The plan "was not designed to work in four months," Obama said. "It was designed to work over two years."
The Council of Economic Advisers this week released a new report predicting "robust" job growth on the heels of Obama's $787 billion stimulus package, particularly in the health care industry. Obama’s current forecasts envision 3.2 percent growth next year, 4 percent growth in 2011, 4.6 percent growth in 2012 and 4.2 percent growth in 2013. The White House projected revenues for 2012 are forecast at $3.1 trillion. But if growth is just 2 percent, rather than around 4 percent, as some economists now expect, that income would hover around $2.4 trillion - adding another $700 billion to the projected deficit of $581 billion.