Stimulus: Saving Jobs or Delaying Recovery?

President Obama’s hollow promises are so glaringly visible these days that he has to chalk every compounding problem to the previous administration. One of his promises, though, involved colossal levels of taxpayer money. All that spending was intended to create jobs – jobs that would lower the rates of unemployment below 8 percent. 

Currently, the rate of unemployment exceeds 10 percent and 2.74 million jobs have been lost in President Obama’s First Year. If people that have stopped looking for jobs are included in the count the rate jumps to upwards of 17 percent. More worrying, though, is the statistic from the Federal Reserve Bank of Dallas that unemployment is rising faster than in any Post World War II Recession:

Evidently, the stimulus has not brought the kind of change it was intended to bring. Rather, the stimulus has prolonged the recession. Recessions prior this had recovered by this point. The reason, quite plainly, was that the market was allowed to readjust and allocate resources to its most productive ends.