May each of you have the heart to conceive, the understanding to direct, and the hand to execute works that will leave the world a little better for your having been here. -- Ronald Reagan

Wednesday, August 5, 2009

What Exactly Has the Stimulus Package Stimulated?

The Bureau of Economic Analysis reports that stimulus funds have contributed to increasing state and local government expenditures, which are up 4.8% in the second quarter. Because states run by Statists (Dems and RINO's) have bankrupted their states, federal stimulus money has topped the income that is supposed to be generated by sales and property taxes. That of course means that most of the federal money is going to Democrats, while the Obama administration made sure he was shutting down car dealerships (turns out most dealership owners were Republican) and stressing other small business, hurting local economies. Federal money has helped cover for reduced state and local revenues by adding 7.5%, covering an 8% drop in tax collections. States run by conservatives are stressed but dealing with it, or improving; so not getting, or are refusing, federal money.

Bureau of Labor Statistics reports that state and local governments added 12,000 workers, a 0.1% increase, in the second quarter. The private sector cut 1.3 million jobs, a 1.2% reduction. Federal employment stayed where it was.

Bureau of Labor Statistics also reports pay and benefits rose at a 4% annual rate in the second quarter for state and local employees. Not so much for the private sector. They have experienced an 0.8% annual rate.

The Statists are saying that a 1% decline of the GDP in the second quarter is better than the 6.4% drop in the first quarter. See? The stimulus is working! Business is getting smaller, the government is getting bigger and better paid. Obama says, 'I love it when a plan comes together!'

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