What Is Obama’s Actual Record on Creating Jobs?
The U.S. economy has been staggering for months and is still millions of jobs away from recovering from the nearly 9 million jobs lost since the start of the recession. Indeed, the official unemployment rate has hovered around 9 percent or 10 percent for more than two years.
President Obama has promised to focus on jobs, so we decided to look at his actual record: What exactly has the Obama administration done to create jobs so far? Here’s a look at Obama’s jobs initiatives, the hits, the misses, and the ones we’re still waiting for an answer on.
Overall, job creation has been relatively meager during the Obama administration, particularly compared to the massive job losses brought on by the recession. According to the St. Louis Federal Reserve, even if job creation were happening at pre-recession levels, it would take us 11 years to get back to an unemployment rate of 5 percent.
Keep in mind: There is no sure-fire way to count how many jobs a given program added to the economy. Some economists use economic models to gauge how the economy would have progressed in the absence of that program. Others look at raw data. As the Washington Post’s WonkBook has detailed, there are drawbacks to both approaches. But they can still give you an overall picture.
Auto industry bailout, December 2008 to January 2009
In total, the government spent $79.3 billion assisting General Motors and Chrysler. Though the initial round of aid was approved by the Bush administration as part of the Troubled Asset Relief Program, Obama expanded on it. It has certainly helped save the companies and perhaps many jobs in the process.
There is little independent data on how many jobs were saved as a result of the auto industry bailout. But a study from the Center for Automotive Research, which receives some industry funding, says the bailouts of General Motors and Chrysler saved more than 1 million jobs in the car industry, supply chain, and communities where auto workers spend their paychecks [PDF], a figure Obama echoes in his speeches on the bailout. According to the Bureau of Labor Statistics, the industry added 45,000 jobs in the nine months after GM exited bankruptcy. [PDF; see fourth page]
American Recovery and Reinvestment Act, February 2009
The stimulus, with its mixture of tax cuts, grants, loans and infrastructure spending, is likely Obama’s most successful job-creation initiative.
Initially projected to cost $787 billion, the package has actually cost $825 billion[PDF], according to the Congressional Budget Office’s latest calculations. The CBO’s latest report estimates that the stimulus raised the number of employed Americans by 1 million to 2.9 million over the last quarter. At its peak in the second quarter of 2010, it increased employment by 1.4 million to 3.3 million.
A report by economists Mark Zandi and Alan Blinder [PDF] found that the stimulus, along with the bank bailout, helped significantly soften the recession. Zandi, who is chief economist at Moody’s Analytics, emphasized that it created the basic conditions for job growth. “If you don’t stabilize the financial system, nothing else matters,” he said.
As we mentioned in our earlier guide to Obama’s economic record, most of the major studies on the stimulus say it had a positive effect on the economy. But not everyone thinks it was such a success. Douglas Holtz-Eakin, former head of the CBO and current head of the conservative American Action Forum think tank, said the stimulus’s achievements were small considering the big price tag. “If you throw nearly a trillion dollars at the economy, it has to have an impact, and it did. … The stimulus basically stopped the fall, but it didn’t have any big multiplier effect.”
Extensions of unemployment insurance benefits, February 2009 (as part of the stimulus), November 2009, July 2010, December 2010
The repeated extensions of unemployment benefits haven’t received the attention, or level of vitriol, that the stimulus has, but they do appear to have saved millions of jobs by allowing people who are out of work to keep buying goods and supporting other businesses. A study conducted for the Department of Labor by an outside firm found that unemployment insurance has been an important economic stabilizer, reducing the fall in GDP by 18.3 percent and preserving about 1.6 million jobs each quarter during the recession. The CBO estimated that the latest extension of unemployment benefits would add $34 billion to the deficit over the next decade. [PDF]
HIRE Act, March 2010
The $17 billion Hiring Incentives to Restore Employment Act provided a payroll tax break for businesses that hired unemployed workers, but the impact has been, at best, unclear.
The Treasury estimates that for the first eight months of the yearlong program, 10.6 million unemployed workers [PDF] were hired by businesses eligible for the HIRE Act tax cut. But it’s unclear how many of those workers would have been hired anyway, without the incentives. Zandi and Holtz-Eakin both said that given the modest overall size of the program, the HIRE Act’s impact would be small even under the best of circumstances.
Education Jobs Act and Medicaid Assistance Act, August 2010
This bill gave $10 billion to the states to preserve education jobs during the 2010-11 school year. It’s still too early to tell how many jobs were created; not all of the money has been spent yet, because districts also have the option to use it for 2011-12. The program estimates that it has created or saved 114,407 teaching jobs so far.
Small Business Jobs Act, September 2010
The Small Business Jobs Act extended Small Business Administration loan programs and created a $30 billion fund that provided capital to small banks in order to increase lending to small businesses. The results are far from clear.
According to the Treasury Department, $4 billion has gone to 332 banks across the country, though again there’s little research on how this has translated into jobs. Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and former Obama administration economic adviser, cautioned that it’s more difficult to gauge how many jobs a program created if it’s not a direct job-creation measure—you’d have to see whether businesses that got access to credit through this program expanded and hired more than business that didn’t.
Holtz-Eakin and Zandi were both skeptical about the program’s results. “The banks that would take the capital probably were the weakest banks, and the banks that were in good shape wouldn’t take the capital,” Zandi said. “There was a great disincentive for participating in that program.”
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18 comments on "What Is Obama’s Actual Record on Creating Jobs?"
May 10, 2013 7:17pm
Są one multum droższe aniżeli te bankowe, o do licha i trochę swobodniej istnieje jednak sprawić sobie hajs w ten wybieg.
Kolejną szansą na wypożyczenie pieniędzy jest specjalność social lending.
Pożyczki społecznościowe użyczane są na maksymie ludzi-ludziom.
Osoby konkretne potrzebujące pieniędzy rekomendują aukcję www na jakiej charakteryzują finisz, oprocentowanie, miesiączka i inne wiadome.
Przekazują informacje o sobie.
Na tej kanwie inne postaci zaintrygowane wkładaniem pieniędzy mogą postanowić się na wynajęcie pieniędzy.
Jednak nie ktoś również nie wiecznie dostanie pożyczkę w ów droga.
Wszystko podlega od tego, azaliż inne postaci nam zawierzą.
Ostatnim, tymczasem w tym samym czasie najbardziej niebezpiecznym trybem istnieje dociekanie inwestora który uradzi się nam dzierżawić flota na własną rąsię.
Bardzo wielu szalbierzy testuje wyciągać pieniądze w ten rozwiązanie szmal od spragnionych jednostek, tym samym w żadnym wypadku nie wypada wpłacać żadnych przedpłat, przedpłat, sumptów preliminarnych.
Warunki udzielenia nam wierzytelności zdołają być choć niezwykle troszkę należyte.
Warto skutkiem tego uważnie trawić sytuację.
Potrzebując kasa mamy wobec tego pożyczki prywatne co w żadnym razie kilka potężnych sposobów na jej urobienie.
Są to familiarni także kompany, nieznajomi, Spółdzielcze Fors Oszczędnościowo Kredytowe, banki innymi słowy w końcu instytucje pozabankowe.
Każdy ze forteli ma własne wady a zalety, warto przeto dyskretnie zastanowić się ponad tym, czego pragniemy także na jakich wymogach.
May 09, 2013 10:16am
Są one wiele droższe niż te bankowe, o sporo swobodniej jest ale fundnąć sobie forsa w ów strategia.
Kolejną szansą na dzierżawienie pieniędzy istnieje specjalizacja social lending.
Pożyczki społecznościowe użyczane są na zasadzie ludzi-ludziom.
Osoby cielesne spragnione pieniędzy promują licytację internetową na której charakteryzują intencja, oprocentowanie, epoka i inne dane.
Przekazują informacje o sobie.
Na tej osnowie inne osoby zainteresowane inwestowaniem pieniędzy zdołają zadecydować się na użyczenie pieniędzy.
Jednak nie everyman oraz nie stale otrzyma pożyczkę w ten droga.
Wszystko zależy od momentu tego, bądź inne jednostek nam polegają.
Ostatnim, aliści za jednym zamachem w najwyższym stopniu niebezpiecznym trybem jest odkrywanie inwestora jaki uradzi się nam użyczyć sałata na lokalną grabulę.
Bardzo wielu spryciarzów weryfikuje wyłudzać w ten droga forsa od czasu spragnionych postaci, tym samym nigdy nie trzeba wpłacać żadnych zaliczek, przedpłat, sumptów preliminarnych.
Warunki udzielenia nam wierzytelności mogą stanowić niemniej niesłychanie nieco należyte.
Warto ergo gruntownie przetrawiać sytuację.
Potrzebując kasa posiadamy dlatego dobra pożyczka co w żadnym wypadku parę zwierzchnich sposobów na jej zwerbowanie.
Są owo familiarni oraz przyjaciele, znani, Spółdzielcze Flot Gospodarczo Kredytowe, banki innymi słowy w końcu instytucje pozabankowe.
Każdy ze sposobów posiada swoje wady i zalety, warto w takim razie starannie zastanowić się ponad tym, czego żądamy oraz na których wymogach.
October 08, 2011 8:57am
OBAMA cannot create jobs alone. He has been viciously thwarted by Congress controlled by GOP/Teapart and some rather right wing oriented Democrats. Time for us to focus on supporting a progressive Congress. Check out Emily's List and other places to give Obama the support he needs to bring new jobs. We know what will work.
October 07, 2011 1:17pm
His actual record at creating jobs is that we still have a 9% unemployment rate and still the money is given to the rich corporations who do nothing.
October 07, 2011 10:05am
every subsidy provided for the past 3 decades has come from OUR tax dollars. which means we have PURCHASED our own jobs by forking over money for corporations to "stay" local. This same money that we gave, then comes back to us (if we're lucky) in the form of a job with a paycheck. Not quite full circle because our tax dollar subsidization does not come back to us at 100% value, nor are the jobs "created" secure. And yet, policies and legislation are re-crafted nearly every year to extract more of our hard earned wages for another round of subsidies to corporations which clearly do not have the interests of citizens in mind. Just follow the money.
October 07, 2011 6:39am
While I share some of your disappointment, many of us DID vote for Obama because he vowed to bring more civility to political discourse, he was calm and thoughtful, and we believed he would work with Republicans to develop practical solutions. He was too late to realize he had no partners in this, but he has still worked to nudge us in the right direction. Healthcare, banking regulations, investment in green technology and education, support for pell grants, fairer tax code, mortgage relief, etc.Too small and piecemeal? I agree. But where were all the progressives when he was fighting for his political life in 2009-10? The Teapartyers, Fox news, every Republican legislator and moneyed powerful interests were all aligned against him and we left him blowing in the wind. That's when he really lost his power and had to settle for less than optimal solutions.But his vision for investing in America's green technologies, infrastructure and education, combined with fairer tax codes I believe is the right one and he continues to try and advance these agendas (but yes, we do need to address our debt/deficits over the long term).Your vote for a third party is a vote FOR the Republicans. Then their tactics of obstructionism, misinformation and coopting of the democratic process will have succeeded. You may be disappointed in the speed and scale of Obama's policies, but our entire society will be devastated by the Republicans. Please reconsider.
Shenzhen, China and West Palm Beach, Florida, Florida and Guangdong
October 07, 2011 7:07am
Dear Keen, I do not think that you really get what is going on. The corporate elite runs the USA and most of the rest of the world also. They do not care about those who are without jobs because they have been outsourced to low wage countries and that makes them more profit. They do not care about the public schools because they send their kids to either the best of those schools or to private schools. They don't care about security because they have their own private security. They do not care about good affordable medical care for the middle class because they can afford the very best. They don't know you because they live in gated communities and don't want to know you. They don't care about you and I because they think that because they are successful the rest of us aren't because we are either lazy, moraly or genetically deficient. They believe in, a dog eat dog, survival of the fittest and that they are the fittest. The corporate elite also will not give up their place unless they are forced to do so. So here comes Obama, and he wants to make nice to these sociopaths. News flash: You don't make nice to someone who doesn't care about you, would as soon see you dead and takes things away from you in order to aggrandize themselves. You either fight or you die.
By the way, in 2009-10 I do not think old Barry was fighting for his life. I think he was just doing what a trojan horse does; showing his true colors. And the progressives and many other dems were still in shock caused by the betrayal of the guy they believed in. We need a challenger at the Democratic Convention. A true progressive and a true Democrat-not Barry the Betrayer. And those brave people who are in the streets across America need all of us out their with them and all the support they can get.
October 06, 2011 7:09pm
Washington D.C. is a quagmire of Good Ol' Boy politics. Obama has been stonewalled from the git-go, often by his own party. The presidents fight for health care reform was drawn out deliberately to stall his momentum. I agree, the Republicans are fighting for one thing and one thing only - re-election in order to maintain the status quo, and the Democrats, being politically chicken-shit (please pardon my French) for the most part are not much better. I'm afraid it WILL be status quo as long as Big Money maintains it's grip on American government.
Shenzhen, China and West Palm Beach, Florida, Florida and Guangdong
October 06, 2011 6:15pm
I'm writting from the PRC, hardly a paragon for civil rights, but I can tell you that Obama has done more to disillusion the progressives of our nation (USA) then McCain and the empty headed sociopath Palin ever could have done. In the PRC, if a responsible government head abuses his power he is held accountable in no uncertain terms. If the offense is serious enough then the death penalty is administered. To date Obama has not prosecuted one single member of the Bush administration and has supported and enhanced the so called patriot act. The same crooks that caused the financial crash are still in charge and are still operating in the same manner as they had been!
With regard to job creation he needed to spend almost twice what he did on the stimulus program. And now with all his emphasis on deficit reduction which which Krugman and Stiglitz say is totally the wrong way to go; he sounds more like a Republican than a Democrat. Face it the man was a trojan horse Republican in Dem clothing from the start.
Oh, and another thing. now he is sounding more sympathetic to those in need of jobs. Do you really believe this guy? Fool me once shame on you. Fool me twice shame on me.
October 06, 2011 5:27pm
History is history, the truth is still and always the truth (until spinmasters rewrite or redact it).
October 06, 2011 4:52pm
you did not get the memo this october you are to lay off blaming bush [ it is getting stale] and blame hoover
October 06, 2011 5:28pm
Truth is truth, even if the Repubs want to rewrite it all.
October 06, 2011 3:25pm
Here's the deal. Obama had a small window, but a window nonetheless, to really give hurting America a jobs program, universal health care and housing program not unlike FDR in 1934 and following. He blew it!
He had a 10 million vote MANDATE to fix this broken country. He blew it. What we have gotten, as important as it is for those who have benefited, is too small, too piecemeal. Way too small in fact. Obama, it seems , was more concerned about his image as a "reconciler" across the political divide and ended up being hoodwinked. So we got a healthcare law that will enrich the insurance companies all the more and continue to see unabated soaring cost in premiums (mine went up 20% this year!).
Millions are still losing their homes with the worse of that crisis yet to come (though NO ONE is talking about that!). And we are still tax funding a 2 Billion dollar bill EACH WEEK on the war machine (and very few are talking about that fubar either!).
So, all in all, I rate Obama (I voted for him) as a near failure. Something close to a miracle will have to occur to get his base back (including myself) and REALLY help those who are twisting in the winds of Corporate Hell. I am not holding my breath, sorry to say. I will be voting Green Party this next time. The Democrats look and sound too much like the Money Baron Repugs. Disgusting.
October 06, 2011 2:27pm
Thank You.... The Republicans harass President Obama, with George Bush havingspent more, and had given tax breaks to the un-needy... a disgrace !!! Started Wars... I certainly hope President Obama, and the Republicans hear the people who are occupying Wall Street... and that movement gains support across our country... Respectfully,
October 06, 2011 1:24pm
What it all comes down to is that the Obama Administration did not sit and do nothing, they have been working hard to get us back to work. Where are all the jobs the Republicans kept talking about before the last election? Now all I hear is the Republican social rhetoric to keep America from thinking about the need for JOBS!
October 08, 2011 8:58am
Yes. I just commented below. This article assumes that the office of President can do this alone. Clearly, not the case, though GOP is trying to pin all the problems on him.
Ps fix ur theme registry rebuild... But nice drupal fusion theme..
Andrew eh
What do you expect. ... How successful would you be if half the people who are supposed to cooperate for the good of the people, simply decided to do nothing., in the hopes that you will fall, and they can take over.
Thats the evil republican agenda. For ya.