Can an increase in unemployment be attributed to the "success" of President Obama's multi-billion dollar stimulus plan? According to the President: Yes it can.
A mere three days after the U.S. Department of Labor reported a June unemployment rate of 9.2 percent -- up a tick from May -- Obama said the loss of jobs is proof positive that his $830-billion economic stimulus worked.
Below is a partial transcript of Obama's revelation and the video follows:
"Now, without re-litigating the past, I am absolutely convinced and the vast majority of economists are convinced that the steps we took in the recovery act savedmillions of people their jobs, or created a whole bunch of jobs. And, part of the evidence of that, as you see instances of the recovery act phasing out."
Obama then added:
"As we've seen that federal support for states diminish, we've seen the biggest job losses in the public sector -- teachers, police officers, firefighters, losing their jobs. So, my strong preference would be for us to figure out ways that we can continue to provide help across the board."
Obama then clarified he can't implement whatever kind of "help" he wants to, as he is operating under "constraints" from the House of Representatives.
[youtube http://www.youtube.com/v/qqA_IXSrHh8?version=3&hl=en_US expand=1]
According to CNS, back in 2009 when the President signed the American Recovery and Reinvestment Act, his top economic adviser, Christina Romer, reported that the act would prevent unemployment from reaching 8 percent. Of course, we are well beyond that point now.
So is Obama just trying to spin a bad situation, or do you believe that job losses prove the President's stimulus worked? Will the so-called "success" of the stimulus now become part of the administration's narrative moving forward into 2012?