Crossroads GPS: “More Martin Spending”

Crossroads GPS attacks Rep. Martin Heinrich (D-NM) for supporting the Recovery Act, implying that the “failed stimulus” – and not the devastating recession that was well underway when Heinrich took office – is responsible for job losses in New Mexico. However, the Recovery Act created jobs and cut taxes for millions of Americans, while New Mexico’s unemployment rate has fallen almost 1.5 percentage points from its recession-driven high.

“Failed” Recovery Act Created Jobs, Boosted GDP, And Cut Taxes

Recovery Act “Succeeded In…Protecting The Economy During The Worst Of The Recession.” From the Center on Budget and Policy Priorities:A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) increased the number of people employed by between 200,000 and 1.5 million jobs in March. In other words, between 200,000 and 1.5 million people employed in March owed their jobs to the Recovery Act. […] ARRA succeeded in its primary goal of protecting the economy during the worst of the recession. The CBO report finds that ARRA’s impact on jobs peaked in the third quarter of 2010, when up to 3.6 million people owed their jobs to the Recovery Act. Since then, the Act’s job impact has gradually declined as the economy recovers and certain provisions expire.” [, 5/29/12]

At Its Peak, Recovery Act Was Responsible For Up To 3.6 Million Jobs. According to the nonpartisan Congressional Budget Office:

CBO estimates that ARRAs [sic] policies had the following effects in the third quarter of calendar year 2010:

  • They raised real (inflation-adjusted) gross domestic product by between 1.4 percent and 4.1 percent,
  • Lowered the unemployment rate by between 0.8 percentage points and 2.0 percentage points,
  • Increased the number of people employed by between 1.4 million and 3.6 million, and
  • Increased the number of full-time-equivalent (FTE) jobs by 2.0 million to 5.2 million compared with what would have occurred otherwise. (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers). [, 11/24/10]

Recovery Act Included $288 Billion In Tax Cuts. From PolitiFact: “Nearly a third of the cost of the stimulus, $288 billion, comes via tax breaks to individuals and businesses. The tax cuts include a refundable credit of up to $400 per individual and $800 for married couples; a temporary increase of the earned income tax credit for disadvantaged families; and an extension of a program that allows businesses to recover the costs of capital expenditures faster than usual. The tax cuts aren’t so much spending as money the government won’t get — so it can stay in the economy.” [, 2/17/10]

National Science Foundation Funded Research On Ants And Venus

The Recovery Act Funded The National Science Foundation, Which Allocated Some Money To Ant Research. According to PolitiFact: “The federal stimulus gave $3 billion to the National Science Foundation, which otherwise had a budget of about $6.5 billion in 2009, according to the foundation’s Website. The foundation is distributing the money using the same peer-review process with which it normally decides on which research to fund. As it turns out, one scientist’s study on ants of the Southwest Indian Ocean and East Africa made the cut. PolitiFact Oregon caught up with Brian Fisher, the project’s leader and curator of entomology at the California Academy of Sciences, to pick his brain about the recent political celebrity of ants. […] While ant research might not seem like an obvious target for government funds, Fisher provides a logical defense. Ants, Fisher says, offer insight into climate change, the spread of disease and natural disasters. ‘You can’t monitor every single living thing, (but) there are key groups that can serve as indicators for other taxa, ants being one of them,’ he said. ‘Without them, we wouldn’t have a functioning ecosystem.’ It’s also worth noting that the project has so far helped employ 16 people, at Fisher’s last count.” [, 9/17/10]

Study Of Venus’ Weather Also Funded By A National Science Foundation Grant. According to, the National Science Foundation awarded the Southwest Research Institute $298,543 under the Recovery Act to collect data on Venus’ atmospheric circulation. [, accessed 6/13/12;, 6/13/12]

Since Heinrich Took Office, Massive Monthly Job Losses Have Turned To Steady Private-Sector Growth

Rep. Martin Heinrich took office on January 3, 2009.

Recession Officially Ran From December 2007 To June 2009, Making It The Longest Since World War II. From the National Bureau of Economic Research: “The Business Cycle Dating Committee of the National Bureau of Economic Research met yesterday by conference call. At its meeting, the committee determined that a trough in business activity occurred in the U.S. economy in June 2009. The trough marks the end of the recession that began in December 2007 and the beginning of an expansion. The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months. In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity. Rather, the committee determined only that the recession ended and a recovery began in that month.” [, 9/20/10]

  • Recession Resulted In 8.3 Million Job Losses. According to the Associated Press, “the Great Recession killed 8.3 million jobs, compared with 1.6 million lost in the 2001 recession.” [Associated Press via Yahoo! News, 5/4/12]

Bush Recession Was So Severe That Economy Was Still Shedding Over Three-Quarters Of A Million Jobs Per Month Through First Few Months Of 2009. According to the Bureau of Labor Statistics, the economy shed 839,000 jobs in January 2009, 725,000 in February 2009, 787,000 in March 2009, and 802,000 in April 2009, for a four-month average of 788,250 lost jobs per month. [, accessed 5/3/12]

Since The Recession Ended In June 2009, The Private Sector Has Added 3.3 Million Jobs While Public-Sector Employment Has Fallen By Over 640,000. According to the Bureau of Labor Statistics, there were 107,933,000 private-sector jobs in June 2009, and 111,317,000 private-sector jobs in July 2012, an increase of 3,384,000 jobs. The BLS also reports that there were 22,570,000 Americans working in the public sector in June 2009, and 21,928,000 working in the public sector in July 2012, a decrease of 642,000 jobs. The private-sector gains and public-sector losses add up to a total increase of 2,742,000 jobs.

The following chart shows the cumulative private-sector job gains and public-sector job losses since the recession officially ended in June 2009:


[, accessed 8/3/12;, accessed 8/3/12;, 9/20/10]

  • Conservative AEI: The Public Sector Is Shrinking, But Private-Sector Growth Is Above Average. From American Enterprise Institute scholar Mark J. Perry: “In the second quarter of 2012, ‘public sector GDP’ decreased -1.44%, and that was the eighth straight quarter of negative growth for total government spending, averaging -2.88% per quarter over the last two years. In contrast, there have been 12 consecutive quarters of positive growth for private sector GDP averaging 3.07% per quarter in the three years since the recession ended, which is slightly higher than the 2.8% average growth rate in private real GDP over the last 25 years.” [, 7/31/12]
  • GOP-Favored “Government Downsizing” Has Been “A Drag” On Job Growth. From the Associated Press: “Conservative Republicans have long clamored for government downsizing. They’re starting to get it — by default. Crippled by plunging tax revenues, state and local governments have shed over a half million jobs since the recession began in December 2007. And, after adding jobs early in the downturn, the federal government is now cutting them as well. States cut 49,000 jobs over the past year and localities 210,000, according to an analysis of Labor Department statistics. There are 30,000 fewer federal workers now than a year ago — including 5,300 Postal Service jobs canceled last month. By contrast, private-sector jobs have increased by 1.6 million over the past 12 months. But the state, local and federal job losses have become a drag on efforts to nudge the nation’s unemployment rate down from its painfully high 9.1 percent.” [Associated Press, 10/25/11]

The Private Sector Has Added 4.5 Million Jobs Over 29 Consecutive Months Of Private-Sector Growth. The following chart shows the monthly change in private-sector jobs dating back to January 2008.


[, accessed 8/3/12;, 8/3/12]

New Mexico’s Unemployment Rate Has Fallen From Recession-Driven High Of 8 Percent To 6.6 Percent. According to the Bureau of Labor Statistics, New Mexico’s unemployment rate peaked at 8 percent from June 2009 (the last official month of the recession) to October 2010. As of July 2012, New Mexico’s unemployment rate was an estimated 6.6 percent. [, accessed 7/22/12]

[NARRATOR:] Big Washington spending is not helping New Mexico, and the more money Martin Heinrich is spending is part of the problem. He voted to spend over a trillion dollars on the failed stimulus, like sending almost $2 million to California to collect ants, almost $300,000 to Texas to study weather on Venus. But back in New Mexico, we’ve lost 27,000 jobs. Tell Martin: More money wasted is not the solution. Focus on jobs for New Mexico. Support the New Majority Agenda at [Crossroads GPS via, 8/22/12]