President Says Stimulus “Saved or Created over 150,000 jobs;” But GM, Chrysler, UBS and BAE Job Losses in Two Days Seem Greater Than That

Last night the President of the United States claimed his “stimulus” or as he calls it, “the Recovery Act “has already saved or created over 150,000 jobs.”

Sounds like a Joe Bidenism to us.

Just in today’s and yesterday’s news, GM is telling news outlets that 1,000 dealerships will have to close, defence equipment firm BAE Systems said Thursday that it will cut around 500 jobs and close three sites, and Swiss bank UBS said on Thursday it had eliminated 2,000 U.S. jobs as part of its latest mammoth round of job cuts announced earlier in April.

The Labor Department said today 631,000 Americans filed applications for jobless benefits in the week that ended April 25, and the total number of people on jobless rolls rose by 133,000 the prior week to 6.27 million, the 13th straight time the figure has set a record.

Christina Romer, chair of President Barack Obama’s Council of Economic Advisers, predicted another economic contraction in the second quarter albeit at a slower pace and delivered a downbeat assessment about unemployment. “The recovery will almost surely take a long time,” she said.

And how about Chrysler?  CNN says:

The company’s liabilities and an unspecified number of Chrysler’s 3,300 dealerships which now sell the Chrysler, Dodge and Jeep brands will be left behind in the bankruptcy court.

Remember Nancy Pelosi: “The auto industry is too big to fail”?

Pelosi, a California Democrat, didn’t cite GM by name in her statement endorsing a bailout last November, but she said an automaker collapse would have a “devastating impact on our economy.”

From Bloomberg last November 12:

“Trying to reorganize the auto industry in bankruptcy would be as close to reorganizing the whole U.S. economy as you could get,” said Alan Gover, a bankruptcy lawyer with White & Case LLP in New York. “The vast supply chain involves thousands of businesses, millions of existing jobs and just as many retirees, as well as whole communities and states.”

Passage of an industry bailout plan may keep GM from running out of operating cash by year’s end, which it says may happen without U.S. help. Detroit-based GM is the second-biggest provider of private health-care benefits and was the third- biggest advertiser in this year’s first half.

“It’s truly one of those companies that’s too big to fail, and everybody understands that,” said Nariman Behravesh, chief economist at IHS Global Insight Inc. in Lexington, Massachusetts. “If it does collapse, it could make the recession deeper and longer.”


Today See Bloomberg:

Add to that:

Does the president understand what “net” means; as in net jobs lost?

Or do we have to wait for Robert Gibbs now to say, “What el Presidente meant to say is….”

The Associated Press said:

This assertion is dubious on several levels. For starters, the U.S. has lost more than 1.2 million jobs since Obama took office, according to the Bureau of Labor Statistics. Even if Obama’s stimulus bill saved or created as many jobs as he says, that number is dwarfed by the number of recent job losses.

But Obama’s number is murky, at best. The White House has not yet announced how it intends to count jobs created by the stimulus bill. Obama’s number is based on a job-counting formula that his economists have developed but have not made public. Until that formula is announced –probably in the coming week or so — there’s no way to assess its accuracy.

Whatever the formula, economists who study job creation say it will require some creative math. That’s because Obama has lumped “jobs saved” in with “jobs created.” Even economists for organizations that stand to benefit from the stimulus concede it probably is impossible to estimate saved jobs because that would require calculating a hypothetical: how many people would have lost their jobs without the stimulus.



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