Following a controversial AP study finding that stimulus spending on roads and bridges has had virtually no effect on local unemployment levels, the general consensus is that the $862 billion stimulus as a whole, including the $35.6 billion committed by the DOT, has indeed created jobs — though precisely how many is still being debated (the generally accepted numbers are around 1.6 million jobs so far, with around 2.5 million in the long run).
The key in analyzing the numbers, ARRA advocates say, is focusing not on just how many jobs the stimulus created, but on how much worse things would have been had it never existed. On his blog, Ray LaHood offers a sum-up of mainstream media reports acknowledging the the ARRA’s importance, not in eliminating the constant climb in unemployment, but rather in keeping unemployment rates from surging even higher. Examples include the Boston Globe, which wrote this weekend:
The numbers are in, and there can no longer be any doubt that President Obama’s stimulus bill helped pull America from the brink of economic catastrophe, in part by creating millions of jobs that would not otherwise have existed. All of the major economic research firms that have studied the stimulus’ effect have come to this conclusion….
[I]t’s ridiculous to deny, as many have, that adding 2.5 million jobs was a poor use of government funds… Stimulus opponents, often motivated by strictly ideological or political concerns, have repeatedly claimed that the bill didn’t create a single job that the economy wouldn’t have created anyway. This isn’t true, and it should be beyond the bounds of political debate to claim it.
Meanwhile, the Baltimore Sun noted:
To conclude the stimulus has done no good is to forget how bad things were, to underestimate how much they have turned around and to ignore how much more the program still has to offer.
And finally, even Gov. Schwarzenegger is hailing the stimulus as a job-creator and chiding those who criticize it, telling ABC News:
I find it interesting that you have a lot of the Republicans running around and pushing back on stimulus money and saying this doesn’t create any new jobs, and then they go out and do photo-ops and they’re posing with the big check and they say, “Isn’t this great! Look the kind of money I provide here for the state! And this is great money to create jobs, and this has created 10,000 new jobs, and this has created 20,000 new jobs.” It doesn’t match up.



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