Perry says stimulus didn’t create jobs; CBO says it did

September 13, 2011

Texas Governor Rick Perry, front-runner in the race for the Republican presidential nomination, said on Monday President Barack Obama’s  economic stimulus program  created “zero” jobs.

Not so, according to the Congressional Budget Office, the non-partisan budget arbiter for lawmakers.

Congress in 2009 passed the $830 billion economic stimulus, known as the American Recovery and Reinvestment Act, which included both spending measures and tax cuts.

According to the CBO:

  • As of June, between 1 million and 2.9 million Americans owed their jobs to the recovery act.
  • In the second quarter of 2011 the recovery act added or preserved 550,000 full-time jobs.
  • The recovery act brought down the unemployment rate by between 0.5 and 1.6 percentage points in the second quarter of 2011.

The Texas governor, who has touted his jobs creation record, gave his assessment of the U.S. economic stimulus program during Monday’s CNN/Tea Party sponsored Republican candidates debate in Tampa, Florida.

Perry shared the stage with former Massachusetts governor Mitt Romney, Minnesota Rep. Michele Bachmann, Texas Rep. Ron Paul, business executive Herman Cain, former Pennsylvania Sen. Rick Santorum, former Utah governor Jon Huntsman and former House Speaker Newt Gingrich.

Photo Credit: REUTERS/Scott Audette (Perry at Republican debate in Tampa)

16 comments

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I love these hypocrites. Perry for one, took a nice chunk of the money and continues with the falsehoods spread from the right. What I really find ironic, is that 30 percent or so of that stimulus was for tax cuts. And that seems to be the only thing that he and his fellow
republicans are willing to do. Oh, dont forget those nasty regulations that keep our air and water clean and our workers safe. I liked what President Obama said in his speech. Let’s not have a race to the bottom. The republicans want to knock wages lower then 3rd world countries and allow companies/corporations to do anything that want, including destroy our environment.

Posted by fromthecenter | Report as abusive

If Perry said it, it must be true. He’s the type of guy who makes up stuff while he talks, but he does it so confidently that nobody questions it or looks it up ESPECIALLY OUR “JOURNALISTS”.

Posted by possibilianP | Report as abusive

Governor Perry has floated the idea of Texas leaving the Union. Given that 47% of all government jobs created in the US between 2007 and 2010 were in Texas, and paid for with federal money, where would Texas’ unemployment rate be if Texas actually did seceed?

Posted by GetpIaning | Report as abusive

Please read what the CBO actually reported:
“2.9 Million Americans owed their jobs”. These could all be jobs ‘preserved’ by the stimulus and exactly 0 created by it.
“added or preserved” that could mean 100% preserved and 0 created.
No contradiction so far. The CBO should try reporting only on jobs created.
Besides, saving almost 3 Million jobs for only $250,000 each sounds like a good deal. *If* you can get one of those jobs!

Posted by Jaybird2005 | Report as abusive

Technically, since Texas took stimulus money to help balance their budget, and he credits himself with Texas job creation, so the stimulus money therefore created Texas jobs that could not have been created due to bugetary reasons. One can bicker about how many jobs that may be, but if it’s more than even one, then Perry is lying, period.

Posted by mikemm | Report as abusive

Ince again, it seems that the Republicans will loose the election. Not because of Obama beating them, but because of the Republicans failing to provide a realistic choice.

Posted by Inertia | Report as abusive

“The stimulous wasn’t big enough!”,
“The rich need to pay their fair share!”
I say take ALL of the rich people’s money give everyone a check and that will solve the problem, right? Better yet, let’s continue to support education that fails our kids…. wait, let’s support green energy….wait….can you say Solyndra?….and on and on it goes

How much money do you think is enough?

Do you really think it’s a success when the govt. “creates or ‘saves’” a job for $250,000?????? Really?

But it sure feels good when we demagog the issues doesn’t it!

Posted by socaldk | Report as abusive

Rick ‘I’ll say whatever I can to get Tea Party votes’ Perry did what he wanted to do…make a sound bite that resonates with his base, whether it is true or not. This is populism at its best…you can campaign on any lie, because you are not accountable until elected.

Nobody really asked Gov. Perry what his plan is, other than copying Texas’ job creation record, which can be attributed to Federal stimulus…so in the end, isn’t he saying he opposes federal handouts but doesn’t mind taking credit from them? Or just gut the EPA and we can all get jobs polluting the Gulf (which becomes the next Governor of Texas’ problem, which will require a Federal bailout to fix).

This goes back to the Bush/Rove dynamic of saying it enough times must make it true; at least Rove had the common sense to not have Bush openly lie, but toe the line and let the house organs (FOX News, talk radio) push it into ridiculous falsehoods (why make your media accountable, especially when they are saying what you like to hear?)

Posted by Mike_s1 | Report as abusive

Why doubt Parry, he channels god.

Posted by seattlesh | Report as abusive

Why can’t the “free” press report the whole true news? Economic facts and figures need to be used with knowledge of what is happening and why. We all know the facts say balance the check book, why can’t the Federal, State and local governments do that. Why can’t politicans, Republican and Democrat do that? Why can’t they LISTEN to the PEOPLE who are the boss? No matter the political party listen to the people follow their ideas and then maybe with common understanding and actions the economy, jobs, debt, etc will begin to cure the problems? Open debate on all congressional bills, open facts etc for the public to see and comment on before any vote by the politicans. Both political parties need to listen to the people. The president does too.

Posted by DScott | Report as abusive

Perry is flippant. No doubt about it.

On the other hand, what is neded to create the job needed is confidence. And Obama had performed poorly, making multiple decisions and errors, yes, even misrepresentations (knowingly or unknowingly, is debatable.

Ironically, Obama is trapped by his own narrow path to success. His experience with the world is shaped by the infamous wheeling and dealing of Chicago politics. And he never saw through it. With his Chief of Staff handpicked from the infamous wheeler and dealer family, the Daly Dynasty, there is clear evidence that Obama is failing to see the fundamental flaws in his decision process with regard to economic policies.

Obama is a much superior orator. In general, it is a good thing, but when excellent speaking skills help to cover up, rationalize, detract from fatal flaws in his overall direction in ecnomic policies, great oratory skills can be a curse for the country, though a blessing for the orator’s career.

Posted by CommonSensLogic | Report as abusive

@Jaybird2005 – The argument goes that job loss was rising and accelerating as the economy collapsed in 2007-2008 [ contradicting the tax cut creationist jobs argument]. And, that stimulus monies thereafter supported a state of jobs turnover as jobs destruction was balanced with federally-funded jobs creation and preservation. In fact, U3 joblessness declined from a peak of 11.2 to 8.7% as stimulus monies hit Main Street, and before the present congress was seated and reassert uncertainty.

Posted by SanPa | Report as abusive

@Mike_s1 – To set the record straight, Josef Goebels was first to recognize repeating a statement to a populace would eventually contribute to a recognition of truth. Bush/Rove merely recycled the tool 70 years later, and FOX has been a vehicle of conveyance.

Posted by SanPa | Report as abusive

CommonSensLogic, is the implication that, unlike Obama, Perry instills confidence?

Posted by PCScipio | Report as abusive

If memory serves me correctly, Texas gave back their stimulus money. Most of Texas jobs came from the private sector.

Posted by txhman | Report as abusive

Txhman, you are incorrect. Texas and Parry gave back zero.

Posted by seattlesh | Report as abusive