Pelosi’s 15%

November 8, 2011

In a Desperate Defense of Failure, Pelosi Bizarrely Claims Unemployment Would Be 15% Without the Stimulus

President Obama’s economists infamously told Americans in early 2009 that their stimulus plan would keep unemployment at 8%, and without it unemployment would climb to 9%.
Democrat Leader Nancy Pelosi last week sought to defend that first failed stimulus by making the bizarre claim that the stimulus kept national unemployment from reaching 15%.
No matter how hard they try to spin their economic failure and deflect blame, Democrats can’t hide from the reality of America’s economy. Jobs numbers out last Friday pointed to ongoing weakness in the jobs market with the economy adding a disappointing 80,000 jobs in October. All Democrats have to offer in response is more of the same failed policies.

BACKGROUND

President Obama’s economists infamously told Americans in early 2009 that their stimulus plan would keep unemployment at 8%, and without it unemployment would climb to 9%:

(Richard W. Stevenson, “Early Economic Projections Could Haunt Obama in 2012,” The New York Times, 11/4/2011)

WHITE HOUSE COUNCIL OF ECONOMIC ADVISORS SAID EVEN WITHOUT STIMULUS, UNEMPLOYMENT WOULDN’T CROSS 9%: (Christina Romer and Jared Bernstein, “The Job Impact of the American Recovery and Reinvestment Plan,” The White House,1/10/2009)

WITH STIMULUS, WHITE HOUSE SAID UNEMPLOYMENT WOULDN’T EXCEED 8%:(Christina Romer and Jared Bernstein, “The Job Impact of the American Recovery and Reinvestment Plan,” The White House,1/10/2009)

Democrat Leader Nancy Pelosi last week sought to defend that first failed stimulus by making the bizarre claim that the stimulus kept national unemployment from reaching 15%:

PELOSI: WITHOUT STIMULUS, WE WOULD BE AT 15 PERCENT UNEMPLOYMENT:“But I will tell you this, if President Obama and the House Congressional Democrats had not acted, we would be at 15 percent unemployment. Again, no consolation to those without a job, but an important point to make.” (“Transcript of Pelosi Press Conference Today,” Office of the Democratic Leader, 11/3/2011)

No matter how hard they try to spin their economic failure and deflect blame, Democrats can’t hide from the reality of America’s economy. Jobs numbers out last Friday pointed to ongoing weakness in the jobs market with the economy adding a disappointing 80,000 jobs in October. All Democrats have to offer in response is more of the same failed policies:

80,000 JOBS ADDED AND 9% UNEMPLOYMENT: Jeff Cox, “Economy Wobbles to 80,000 New Jobs, Rate Slips to 9%,” CNBC, 11/4/2011)

CNBC: “THINGS ARE SO BAD THAT THIS LOOKS GOOD”: (Patti Domm, “Jobs Report: Things Are So Bad This Looks Good,” CNBC, 11/4/2011)
UNDEREMPLOYMENT RATE AT 16.2%: (MKM Partners, “Unemployment Could Go Higher,”Barron’s, 11/7/2011)

BARRON’S: ECONOMY MORE LIKELY TO GET WORSE THAN TO GET BETTER: “We need a period of significantly above-trend growth over a period of years to reduce the unemployment rate appreciably and place income and employment on more stable footing. Unfortunately, in our view, economic conditions are more likely to deteriorate than to firm over the coming months.” (MKM Partners, “Unemployment Could Go Higher,” Barron’s, 11/7/2011)

WSJ OP-ED: WILL TAKE TIL 2016 TO MAKE UP ALL LOST JOBS: “In 2011, the economy has added about 120,000 jobs a month. At this pace, it will take until the end of 2016 for the U.S. to replace all the jobs lost during the recession that ended two years ago. After the previous seven post-World War II recessions, it took the economy on average about two to three years to recover job losses.” (Editorial, “When 9% is a Relief,” The Wall Street Journal, 11/7/2011)

“TEPID GAINS,” JOBS MARKET “REMAINS A FAR CRY FROM INDICATING GROWTH”: (Jeff Cox, “Economy Wobbles to 80,000 New Jobs, Rate Slips to 9%,” CNBC, 11/4/2011)

BUT 98 DEMOCRATS ARE OFFICIALLY COSPONSORING STIMULUS 2.0: (Thomas.gov, Accessed 11/3/2011)

AND MORE DEMOCRATS MAY BE GETTING READY TO SIGN ON: DEBBIE WASSERMAN SCHULTZ: “Well, the co-sponsorship is really not reflective of the widespread support that exists in the Democratic caucus and in the country for the American Jobs Act.” (CNN’s “State of the Union,” 10/16/2011)

CBO JUST ADMITTED IT’S ” ‘IMPOSSIBLE TO PROVE’ STIMULUS CREATED JOBS”:“SEN. TOOMEY: ‘I know it is your view that the recent huge increase in spending and the corresponding big deficits have generated more economic growth and more job creation that we would have had in the absence of those things. But surely you’d agree, that that essentially asks for a comparison to a counterfactual, and as such, it’s completely impossible to prove?’ DR. DOUGLAS ELMENDORF, director of the CBO: ‘Yes, that’s right, senator.‘” (Remarks from Doug Elmendorf, “CBO Agrees With Toomey: ‘Impossible to Prove’ Stimulus Created Jobs,” Real Clear Politics, 10/27/2011)

BIDEN TELLS CNN: “NOBODY” CAN SAY STIMULUS “DID NOT DO VERY GOOD THINGS” FOR THE ECONOMY: (CNN’s “State Of The Union”, 10/23/11)