Research Briefing

Obama Holding ‘Jobs Summit’ To Push Stimulus II, Ignoring Lessons From Stimulus I, Republican Ideas For Job Creation

Obama Attempting “To Demonstrate His Concern About The Nation’s Rising Jobless Rate” At His Jobs Summit Today. (Michael A. Fletcher, “White House Announces A Jobs Summit On Dec. 3,” The Washington Post, 11/16/09)

OBAMA’S FIRST STIMULUS FAILED TO PREVENT DOUBLE-DIGIT UNEMPLOYMENT, SUCCEEDED IN PROMOTING WASTE, FRAUD AND ABUSE

Since Obama’s $787 Billion Stimulus Passed In February, America Has Lost 2.8 Million Jobs, Unemployment Rate Now At 10.2 Percent.  (U.S. Bureau of Labor Statistics, www.bls.gov, Accessed 12/2/09)

$3 Million From Stimulus Went To Road Crossing For Turtles. “A report due to be released today … contends the Obama administration’s stimulus program is fraught with waste … evidenced by a turtle crossing in northern Florida that will cost more than $3 million.” (Peter Nicholas, “Stimulus Program Fraught With Waste Report Says,” The Los Angeles Times, 6/15/09)

$6 Million From Stimulus Went To Company Under Criminal Investigation. “[O]ne federal agency has awarded $6 million in stimulus funds to a huge international construction management company that has been the focus of two criminal investigations in the last two years ...” (William K. Rashbaum, “Stimulus Funds Go To Company Under Cloud,” The New York Times, 9/3/09)

$16.1 Million From Stimulus Went To Nancy Pelosi’s Mice. “The Obama administration quietly announced last week that as much as $16.1 million from the stimulus program is going to save the San Francisco Bay area habitat of, among other things, the endangered salt marsh harvest mouse.” (S.A. Miller, “GOP Slams Stimulus Mouse Money,” The Washington Times, 7/9/09)

BUT INSTEAD OF LISTENING TO PROVEN REPUBLICAN IDEAS THAT WILL CREATE JOBS …

Two Months Ago, Republicans Sent Letter To Obama Outlining Ideas To Help Small Businesses Create Jobs. “House Republicans sent a letter to President Barack Obama today, pushing the administration to seek more business tax breaks as a way to boost the number of new jobs … Give small businesses a tax deduction equal to 20% of their income … Lower individual income tax rates … Increase businesses’ ability to recover current losses by re-filing prior tax returns.” (John D. McKinnon, “House Republicans Press Obama On Jobs Creation,” The Wall Street Journal’s “Washington Wire“ Blog, 10/7/09)

And House Republican Whip Eric Cantor Presented Job Creation Plan Focused On Limiting Taxes, Spending And Regulation. “The proposals include a halt to any new federal rules or regulations that would have an economic cost or result in job loss; a promise to freeze tax increases -- including new taxes as part of the health care bill, and an extension of the expiring Bush tax cuts … spending caps and waste-cutting initiatives that begin to address the deficit; reforms to the unemployment system to lower the burden on businesses ...” (Rick Klein, “GOP Whip Cantor To Outline Job Plan,” ABC News, 12/2/09)

OBAMA PUSHING STIMULUS II AT ‘JOBS SUMMIT’ PACKED WITH SUPPORTERS OF STIMULUS I …

Obama Looking At “Number Of Options” For Stimulus II. “Obama last week said his administration was examining a number of options to spur the economy and tackle unemployment, including spending on roads and bridges … refitting of buildings to make them more energy efficient ...” (“Obama Plans Jobs Summit But Not Second Stimulus,” Reuters, 11/12/09)

So Obama’s ‘Job Summit’ Packed With Supporters Of White House Policies, Those Who Shaped Stimulus I. “President Obama is hosting a ‘jobs summit’ at the White House Thursday that will be packed with business leaders and economists supportive of White House policies but lacks a diversity of opinion … Confirmed attendees include liberal economists credited with shaping the $787 billion stimulus package, union leaders, environmental advocates and executives from Google and other blue-chip firms …” (Kara Rowland, “Critics Not Invited To White House ‘Jobs Summit,’” The Washington Times, 12/2/09)

And Summit Attendees To Push “More Federal Spending” For Stimulus II. “More federal spending to generate jobs is a likely subject at Thursday’s summit given that guests will include economists such as Paul Krugman, who has argued that the first stimulus package was not large enough. Likewise, chiefs of the Center on Budget and Policy Priorities and the Economic Policy Institute … have called for more federal dollars to aid states experiencing budget shortfalls.” (Kara Rowland, “Critics Not Invited To White House ‘Jobs Summit,’” The Washington Times, 12/2/09)

FOLLOWING THE SAME LIBERAL JOB-KILLING PATTERN: SPEND, TAX, REPEAT

Obama’s First Stimulus Contributed To Record Deficit Of $1.42 Trillion This Year, Tripling Previous Record Last Year. “The Obama administration has released new deficit numbers, and they are not pretty. The deficit for fiscal year 2009, which ended Sept. 30, came in at a record $1.42 trillion, more than triple the record set just last year.” (David Jackson, “Obama Team Makes It Official, Budget Deficit Hits Record. By A Lot,” USA Today’s “The Oval“ Blog, 10/16/09)

Obama Pushing Health Care Experiment Paid For By Hundreds Of Billions In Tax Hikes, Raising Income And Payroll Taxes On Many Small Businesses That Will Kill Jobs. “This [surtax] would hit job creators especially hard because more than six of every 10 who earn that much are small business owners, operators or investors, according to a 2007 Treasury study... America’s successful small businesses would pay higher tax rates than the Fortune 500, and for that matter than most companies around the world ...” (“Estimated Revenue Effects Of Possible Modifications To The Revenue Provisions Of H.R. 3962, The ‘Affordable Health Care For America Act’,” Joint Committee On Taxation Publication, 10/29/09; Douglas W. Elmendorf, Letter To Senator Harry Reid, 11/18/09; Editorial, “The Small Business Surtax,” The Wall Street Journal, 7/14/09)

Obama Pushing National Energy Tax Could Mean Nearly 1 Million Jobs Lost Per Year. “Overall, a cap-and-trade system that reduces annual GDP by 0.34 percent per year can be expected to reduce U.S. employment by roughly 964,900 jobs per year, reduce household earnings by $37.8 billion, and reduce total U.S. economic output by $136.1 billion.” (Andrew Chamberlain, “Who Pays For Climate Policy?,” Tax Foundation, 3/09)