Biden contends stimulus working

GOP doubtful, cites jobless rate

August 05, 2009|Darlene Superville, Associated Press

WASHINGTON - Vice President Joe Biden cited more positive economic data yesterday to buttress the Obama administration’s contention that its $787 billion stimulus program is doing its job revving up the economy.

“I can tell you today, without reservation, the Recovery Act is working,’’ Biden told reporters after a White House meeting with members of the administration’s economic team.

Nearly six months after Obama signed the stimulus program into law, the administration is trying to counter criticism, as well as perceptions, that the program has failed to create thousands of promised jobs. Obama credited the stimulus last week for helping “put the brakes on the recession’’ after the Commerce Department said the economy had shrunk by just 1 percent in the second quarter, a better-than-expected performance that was the strongest indication yet that the economic downturn has begun to wind down.

But House Republicans, who unanimously opposed the stimulus package, were incredulous at Biden’s declaration.

Antonia Ferrier, a spokeswoman for House GOP leader John Boehner, said that Biden acknowledged a month ago that the administration had “misread’’ the depth of the recession and that the White House had predicted unemployment would stay under 8 percent nationally.

Nationwide unemployment has risen every month since the stimulus took effect in February, climbing in June to a 26-year high of 9.5 percent. The July rate, which the government will announce Friday, is expected to be higher, probably into double digits.

As part of the effort to counter criticism of the stimulus, Obama and Biden are taking their economic message on the road. Obama is headed today to hard-hit Elkhart, Ind., which depends heavily on the production of recreational vehicles and has suffered during the downturn. Biden plans to speak in Detroit. Several Cabinet secretaries were also venturing out with an economic message.

Biden cited other economic data yesterday in making the administration’s case.

He said spending by state and local governments increased 2.4 percent from April to June, after falling the prior six months. “That links directly to the fiscal relief we have provided,’’ said the vice president, whom Obama put in charge of keeping fraud and waste out of stimulus spending.

Household income grew at a yearly rate of almost 5 percent in the same period, following declines the previous nine months. Business investments contracted less than expected, he said.