Under pressure and criticism from Republicans, the Obama administration proudly trumpeted the success the the $787 billion dollar stimulus package. They claimed that jobs were created, and jobs that would have otherwise been lost were saved from the axe.
Yesterday, an analysis released by the Associated Press of the stimulus job report found that the 30,000 jobs credited to the stimulus are an overstatement by no less than 5,000. Last night the White House quickly responded to the report acknowledging that there were errors with the data they looked at to come to their 30,000 number and that the new data to be released Friday was reviewed much more closely. In fact, the errors were already known by the administration because their numbers were derived from “a small subset of data that had been subjected only to three days of reviews.”
The question becomes how the administration could knowingly use flawed data as evidence of the triumphant success of the single biggest government intervention into the economy. The play of time in politics certainly has a lot to do with it.
The initial reports were released October 15. At the beginning of October reports illustrated an unexpected surge in unemployment during the month of September. In response, Republicans pointed to rising unemployment as evidence of the failure of the massive expenditures of taxpayer money. On top of the poor employment situation, news was trickling in about how executives on Wall Street started raking in money once again. With millions of Americans ailing, the rich were once again indulging themselves, even after the massive bailouts that kept them afloat.
With all of this bad news piling up, it’s not surprising that the Obama administration wanted to inject some positivity into the economic story being told by the media. So, three days after the job reports were available a preliminary analysis was released and the administration used that report to tout the tens of thousands of jobs the stimulus created or saved.
Now that those results have come under fire, it has become convenient to place the highest emphasis on the preliminary nature of the initial reports, even though for the past two weeks the data has been treated as truth in the face of stimulus critics. As things worked out, the complete three week review of the data is set to be released tomorrow, just one day after the AP report made its way around the news circuit. As a result, the political costs of the report will be minimal because of the preoccupation with analyzing the new data and the time spent covering officials once again defending the effectiveness of the stimulus.
Due to the accumulating pressure from economic factors and Republicans, the Obama administration quickly released a report that could portray the stimulus in a positive light. The report was used to combat criticism and in the campaign efforts of various Congressional Democrats up for reelection in 2010. The administration bet against the potential repercussions of the decision to rush an early report, and they lucked out in this case.
The timely release of information, be they official reports or leaks to the media, is certainly not unique to the Obama administration. Presidents never admit to these things while in office, making any accusations the result of careful speculation. Considering the pressures Obama was facing and the central place the state of the economy will play in 2010, as well as the importance of that election to his first term goals, it’s hard to completely discount the notion that he will feed us any good economic news that comes his way.
It will be interesting to see how the Obama administration uses time in its various endeavors. In matters involving the state of the economy, he has clearly been very quick to react. Healthcare reform was also treated this way in its early stages, especially back when Obama originally proposed an August deadline to make sure that the process would keep moving. In contrast, the decision to send more troops to Afghanistan has drawn an Obama that emphasizes the deliberative process despite charges of “dithering” from Republicans. Going forward, and especially as the midterm elections near, the use of time as a political tool (or hindrance) by the Obama administration will become clearer in its patterns. From these patterns we can gain insight into his priorities, the way he hopes to achieve those goals, and how he matches up to his campaign promises to change how Washington functions.