The economy being much worse than ever predicted isn't Obama's fault, the Bush administration supposedly left us a worse economy than anyone realized. Even to Stephanopoulos, the alternatives were only two: "either you misread the economy [that the economy was worse than Team Obama realized] or the stimulus package is too slow and to small."
A low and behold, here's this headline in today's Wall Street Journal reports "Calls Grow to Increase Stimulus Spending." [snip]
The alternative explanation should be obvious: the stimulus has made things worse.
The notion that "the stimulus package is too slow and to small" implies that massive government spending helped the economy. But the resources the government spends has to come from some place. Spending almost a trillion dollars on various stimulus projects means moving a lot of resources from where the private sector would have spent it, eliminating the jobs many people currently have.
And that's the explaination behind the acceleration of job loss under the Obama administration. Since 1990 there have only been three months where the unemployment rate has increased by as much as a half a percentage point, and two of those have been since Obama became president. During the last five months of 2008, 2.15 million jobs were lost. From February through June, 2.64 million jobs were lost.
If the Obama administration is going to invent history they might start with finding a single example where massive government spending has worked in the past...
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