Study finds the stimulus cost the private sector one million jobs

An Ohio State research team has released a study illustrating that the American Recovery and Reinvestment Act (ARRA) was the abject failure we knew it would be before it was ever implemented. Keynesian economics don’t work, have never worked, and are actually a negative. Let’s not forget the additional debt the American taxpayer has been saddled with to pay for this monstrosity of social engineering on top of the jobs lost.


estimate the Act created/saved 450 thousand government-sector jobs and destroyed/forestalled

one million private sector jobs. State and local government jobs were saved because ARRA funds

were largely used to o

set state revenue shortfalls and Medicaid increases (Fig. A) rather than

boost private sector employment (e.g. Fig. B).

Here is the direct link to the study.

It’s important to remember that even this type of ‘investment’ spending as Obama refers to it, is designed to be temporary as a boost where demand is lagging or credit is restricted. When conditions improve, the stimulus should be withdrawn. Instead, what we are witnessing is that this additional deficit spending is now a permanent part of the federal budget. Yet the states won’t receive the billions in handouts they did previously to temporarily salvage their own budgets.

Additionally, the stimulus cost needs to be extracted from the recovering economy and acts as a further anchor stunting any perceived recovery. It’s a vicious cycle with no hope of a positive outcome. None of this is any surprise to those of us who never bought into the sales pitch despite being denigrated at the time for not even giving the stimulus a chance. It’s not a new concept. It’s a tried and true proven failure. Hopefully, the American voter will pay closer attention next time at the ballot box.


15 thoughts on “Study finds the stimulus cost the private sector one million jobs”

  1. Let’s see. The private sector loses 1,000,000 jobs. But, the taxpayers gain 450,000 more bureaucrats to spend even more money. boy that investment turned out great, didn’t it Mr. President?

  2. What’s the matter Ben, the math not adding up for you? Create 450,000 jobs that don’t create any wealth and cost the taxpayers money as opposed to losing one million jobs that do create wealth and don’t cost us a dime. Seems pretty clear who has the ridiculous argument. I would suggest you delve into the study itself and describe why their methodology is flawed and yours is better rather than wasting your time on me.

  3. Damn! You mean to tell me that YOU got awarded Most Ridiculous Analysis Evah? Does that mean the contest is FINISHED before I knew about it? Done? Kerplunk? Fini?



  4. Don’t worry Robot. I’m sure there will be another contest soon. Probably the next time I throw out my opinion on anything.

  5. Wait a moment…. I had a lefty tell me that I had the most ridiculous analysis ever.

    Are we seeing “most ridiculous analysis ever” inflation? You know, where lefty’s print up ever increasing amounts of “most ridiculous analysis ever” statements and begin spreading them around the internet causing them to less and less valuable?

    Yep, that is what we are seeing.

  6. What’s worse is I didn’t even call out the university behind the study and still got the award – Ohio State! Ugh!

  7. Big surprise here. The stimulus was a colossal failure and we still have many in this administration who want to spend more. Are they that dumb or are they purposely trying to collapse the entire system?

  8. Hhogging scarce credit during a credit crunch to “save or create” temporary government jobs was a sure-fire way to obstruct permanent private sector job creation. Growing the national debt by almost 10% in a single bill was a sure-fire way to push us toward a debt crisis.

    To the extent that stimulus bills have any economic justification, they are designed for business cycle recessions, not downturns caused by financial crises. It was the wrong tool even by Keynesian standards. The logic should make it clear why: the cure for the fallout from overleveraging was more overleveraging. Brilliant.

  9. A new study shows that libertarians (I can’t speak to conservatives) build their agenda based on solid evidence. That later evidence confirms what is already known isn’t a surprise.

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