CouleeConservatives.com

In 2009, President Obama and Congress poured hundreds of billions of taxpayer dollars into bailouts for businesses and for governments.  The lion’s share of the February, 2009 $787 billion stimulus bill was directed to state and local governments, which used most of the dollars merely to plug budget holes.  In Wisconsin, $2.2 of the $3.4 billion or more than 60% was used to offset the state’s budget deficit.  Governor Doyle announced last fall that by using the money this way he was able to create or save 6,100 government jobs.  Though he said another 2,184 private sectors jobs were created or saved, he couldn’t point to what or where they were.

Shortly after, Democrats were forced to backtrack on the estimated job-creation impact of that stimulus, after embarrassing reports that job figures were artificially inflated with double-counting, and others were attributed to congressional districts and zip codes that don’t exist.  Earlier this month, the Obama Administration announced that it will no longer track the number of jobs “created or saved,” but instead the overall number of jobs that receive stimulus funding in some form or another.

As it turns out, most economists have found that the federal stimulus bill has had no impact on employment.  The Washington-based National Association for Business Economics (NBBE) recently polled economists at 75 private-sector companies and industry trade groups about the state of our economy.  According to the results, 69% of those economists said no jobs were created by the stimulus bill.  The NBBE poll also found that 28% of the employers cut jobs in the last quarter of 2009, while only 13% added jobs and 59% held steady.

The latest data is consistent with other reports that show a fragile economy and workers who are skeptical about the promised expansion.  Their concern is very much warranted.  Economists questioned in the poll expect the national unemployment rate, which is currently stuck around 10%, to increase in the coming months.

That we have nothing to show for the last year of unprecedented government spending is proof that’s its not the way out of a recession.  Like President Obama, Governor Doyle said he had to raise taxes - $3.1 billion of new state taxes and fees - and increase spending - 6.2% in Wisconsin - to stimulate the economy.  But, just this week, the non-partisan Legislative Fiscal Bureau revealed that state tax revenues continue their downward spiral.  LFB’s review of six months of tax collections indicate Wisconsin will collect $295.2 million less than expected during our current two-year budget.

Higher taxes and more government spending won’t fuel an economic recovery; that much is clear.  The economy won’t grow as long as money is siphoned away from employers to support government jobs at the expense of private sector ones.  It’s time Governor Doyle and the Democrats stop relying on failed Washington experiments and return to what has made Wisconsin successful in the past: less government and lower taxes.