Despite Claims, Data Continue to Show Small Impact of Stimulus[Only 0.3% of -6.4% to -0.7%]

The Wall Street Pit ^ | Oct 24, 2009 | By John B. Taylor

[Son House]

Debate about the impact of the $787 billion stimulus continued this week.

“Thanks largely to the Recovery Act,” Larry Summers argued, “we have walked a substantial distance back from the economic abyss and are on the path toward economic recovery.”

Yet the latest data from the Department of Commerce continue to show that only an insubstantial part of this distance was due to the stimulus.

The table shows the latest Department of Commerce estimates of the contributions of consumption, investment, net exports, and government spending to the improvement in GDP growth from the first to second quarter.

Growth improved by 5.7 percent (from -6.4 percent to -0.7 percent). Private investment was by far the major source. Government spending contributed 1.9 percentage points, but more than half of that was defense spending which was not part of the stimulus.

The table is an update of information reported in my Wall Street Journal article of last month with John Cogan and Volker Wieland.

This one-page brief provides more details and also shows that direct spending from the stimulus contributed only 0.3 percent of 5.7 percent.

We will learn more when the Department of Commerce releases data from the third quarter next week, but so far their data are very clear that the stimulus is having a negligible impact.

[Son House]

This is 1st and 2nd quarter GDP, 3rd quarter GDP is out next week

"Private investment was by far the major source"

So that $870 billion dollar Stimulus taught the 111th Congress nothing, they still think their Keynesian Economist rule

"This one-page brief" [working on opening that]

[blam]

The last stimulus package just wasn’t big enough. Let’s do it again and ‘do it right this time.’ <>

[Son House]

“This one-page brief” [working on opening that]

^
I may need help, using Google Chrome and something ain’t jiving

[chuck_the_tv_out]

“Let’s do it again and ‘do it right this time.’”

like leftardedness generally

[MHGinTN]

The stimulus was—as admitted by Harry Reid when he thanked them for it—written by the Van JOnes Apollo Alliance and aimed at funneling monies to the three legs of that socialist/marxist program, so it is not surprising that ‘media’ cannot find a significant impact of the stimulus upon the American working economy. It was never aimed to stimulate the American economy, it was aimed at sustainign the three legs of the marxist agenda until the economy could be crashed sufficiently to sweep away the old republic and solidify the federal oligarchy to be run by the democrat constituencies found laying in wait in the Apollo Alliance denizens. ACORN was cut off from gov’t funding ... until the end of October, when it will resume, unabated. We must learn these lessons now or fall to the marxist bastards running the democrap party and Amerika.

[stephenjohnbanker]

““Thanks largely to the Recovery Act,” Larry Summers argued, “we have walked a substantial distance back from the economic abyss and are on the path toward economic recovery.””

Summers, how do you live with yourself, you lying POS!!

[raygunfan]

yeah, big surprise

[April Lexington]

One only needs to read Henry Hazlitt’s masterpiece to understand why this is so...