Stimulus package: is it getting the job done?

• Author: Graham, Chris
• Position: Washington insights

On Feb. 17 President Barack Obama signed the American Recovery and Reinvestment Act of 2009, the $787-billion piece of federal legislation commonly known as the "stimulus" bill. It was originally billed by supporters as the only way to save the nation from economic ruin. However well-intentioned certain funding priorities may seem, questions remain about its value, as compared to the actions of the Federal Reserve and what the increased spending means for the nation's future financial well-being.

After the historic 2008 election, President Obama and his Democratic Congressional colleagues arrived in Washington, D.C., pledging change. They promised to rid the country of the worst economy since the Great Depression and save it from double-digit unemployment.

In mid-February the president's job approval rating was in the mid- to upper-60s [percent], Congressional Republicans wore wobbly boots and nearly 70 percent of the country believed the nation was headed in the wrong direction. Debate was framed around a notion that Democrats were sent to Washington to clean up the mess left behind by eight years of a Republican administration.

Do the Numbers Add Up?

Since February, much has transpired. Democrats have increased their majority, thanks to the results of the Minnesota Senate race and GOP defections. The stock and real-estate markets have shown signs of life. And an August poll showed that twice as many Americans saw the stimulus as doing good, not bad, for the country.

Yet Obama's approval ratings have dipped below 50 percent, as the American people fear worsening employment numbers and many believe that Obama and the Democrats are in over their heads.

Empirical data shows that the stimulus program in motion has provided $140 billion in relief to entities like state governments that face estimated shortfalls of $350 billion over the next two years. Or most of the $3 billion provided to fund the "cash-for-clunkers" program that auto executives say gave a much-needed jolt to the struggling industry, and the release of $1.2 billion to create an electronic medical records system to improve efficiency of health-care delivery.

These programs are sizable, as a major portion of the Democratic base is comprised of state employee unions seeking to protect their members from job losses. The administration also spent much political capital in trying to save some automakers and making plans to push through its controversial health-care reform effort.

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