Skip to comments.New Evidence That The Obama Stimulus Was a Bust
Posted on 08/22/2010 10:39:04 AM PDT by Nachum
The debate in the popular press and on blogs about the efficacy of the 2009 stimulus bill generally has been superficial on both sides. Those who tout the bill point to a study by liberal economists Alan Blinder and Mark Zandi purporting to show that the fiscal stimulus enacted under Presidents Bush and Obama lowered the unemployment rate by approximately 1.5 percentage points. However, as Lawrence Lindsey points out in the Weekly Standard, this study assumed that the recent stimulus has been roughly as effective, dollar for dollar, as past programs. It then multiplied past measures of job creation by the number of dollars spent this time around.
(Excerpt) Read more at powerlineblog.com ...
The list, ping
who needs anymore prooof that its a bust.
Well, all you have to do is look around to see that the stimulus has not and will not work.
The BO/BS stimulus achieved its purpose. It expanded the federal government
How did you spend your $8,700 in stimulus money?
Congress has divvied up the $1 trillion stimulus. Where did your share go?
Social Justice is Bull Crap.
While journalists are still pretending that the Stimulus is working they should be preparing reports about how so much of the population were deluded into thinking this massive theft was a good idea. I suppose this would require journalists investigating themselves, so I can’t see it happening.
If you look at the real goals of this spending bill it was a wildly successful payoff scam, that's why it can't be said to be successful if you try to analyze the propaganda image of the bill rather than the actual intent of it. Stop even calling this a stimulus package rather than a payoff or graft package and you can think about it clearly.
It is exactly how Chicago politics is run. It was a given that they would do this from day one.
Things would be so much worse if the financial markets had not recovered nicely since the March 2009 low.
None of that has anything to do with Obama.
It has to do with the Fed keeping interest rates near zero.
Obama’s stimulus has added to the deficit which only makes things worse and those chickens, to quote his mentor, have yet to come to roost.
Democrats messed up Keynesian economics; government stimulus might work in a depression, not a recession;
In normal recessions the argument goes an increase in discretionary government spending is unnecessary and even counterproductive. But in the event that a recession becomes a depression, a Keynesian stimulus package might work.
Yeah, It’s like getting liposuction, only coming out fatter. It’s time to convict Democrats of Economic Malpractice.
Except there is also the addition of $3 trillion more debt and completely compromised market equilibrium safety measures.
Not to mention the complete collapse of faith that small business has that this regime has any respect at all for capitalism and the rule of law.
Yes, it expanded the federal government, rewarded the politically connected - including the very rich - at a the expense of the middle class who are left with the bill.
This is an out and out effort to destroy our middle class - something that has made the US strong and powerful.
Hold on everybody, half of the stimulus hasn’t been spent yet — it’s the other half will create jobs and restore the economy. /s
The money went to bankers, Unions and public schools. That’s why the stimulus did not work because it was not intended to stimulate. But even that hasn’t helped Obama and the Democrats because the common street liberal got the shaft.
Small Investors Flee Stock Market, Pull $33B From Mutual Funds...
The unspent rest of the stimulous will be used as handouts to thier voter base.
The unspent rest of the stimulous will be used as handouts to thier voter base.
Pretty much the same as the first half
So, a raid on the Treasury for a political payoff for unions and governmnt employees didn’t “stimulate” the economy. Shocking.
And oh yes, they are getting sick of their socialized medicine and are taking baby steps to get it back to free market principles.
Debt is deflationary. If you want to kill an economy, then borrow more money.
But now we owe principal and interest for it all. If we hadn’t borrowed the money, I suspect the whole world would be better off. Typical FDR thinking on the part of the Democrats.
As if any more proof is needed.
Did people ever get the $250.00 they were supposed to get since Obama didn’t raise Social Security?
I believe that the $250 bribe from the administration to seniors will be happening soon. It doesn’t go into effect yet.
Thanks Nachum. Shouldn’t that be “Evidence that Wrongly or Incorrectly Shows that President Obama’s Stimulus Package Was a Miserable Failure”?
even the unions hate obama but like us with the republican party, it's all we got
blam, since you seem to be the economics guru here at FR, I wonder if you have heard of or read the book The Rational Optimist?
Let’s even say for the sake of argument that it had worked as it was sold - since it was debt financed it just transferred the hard times to a future date. That solves nothing.
Since it didn’t work at all - it just created even more hard times for a later date when the bill becomes due. Ridiculous policy.
Nah...not by a long shot. I'm a retired chip-maker and don't guru that much anymore either.
I post on the economy, stocks and finance because I know so little...I learn from everyones questions and the answers.
Look a little closer and you'll see that I never give any advice.(sorry)
...Just how big is the stimulus package? Well for one, it has doubled the size of the House of Representatives, according to recovery.gov, which says that funds were distributed to 440 congressional districts that do not exist.
According to data retrieved from recovery.gov, nearly $6.4 billion was used to create or save just under 30,000 jobs in these phantom congressional districtsalmost $225,000 per job. The web site operates on an $84 million budget and is tasked with monitoring the distribution of the $787 billion stimulus package passed by Congresswhich, for the record, counts 435 membersin early 2009...
Americans are awakening to the fact that govt insiders are mishandling trillions in "stimulus" that federal monies are being illegally directed to Democrat campaign coffers, and/or wire-transferred offshore into personal accounts......and being laundered in the states.
Keep in mind, much of the stimulus was sitting in Washington. Ohaha hoarded it (together with his several slush funds), doling it out to imperiled Dems' 2010-12 campaigns.
I see someone bent the curve afterall.....
You are wise not to give advise, for predicting the future is a fool’s game.
I do think you would enjoy the book, The Rational Optimist. He has an interesting take on history and our current obsession with doom and gloom.
*sigh* Of course, I meant advice, not advise. I need more coffee.
Can you imagine where the economy would be right now if Obama in fact had put $8700 into the hands of every American rather than steering it to favored interests? He could have easily done this through an extended payroll tax holiday, for example. The economy would have taken off like a rocket.
Each dollar of deficit-financed federal spending increases the economy by only 50 cents in the short run. In contrast, every dollar of tax reductions increases the economy by $1.50. But the latter finding also implies that each dollar of tax increases costs the economy $1.50. Thus, once you consider that deficit-financed federal spending eventually has to be paid for through higher taxes, the huge advantage that tax cuts have over deficit spending as a way to boost the economy becomes enormous. Sadly, it doesn’t fit into Democrat preferences to “share the wealth.”
Hence Obama has ended up giving us a perfect case study of the adverse effects of relying on deficit-financed stimulus as compared to the rapid recovery we enjoyed when Ronald Reagan sensibly lowered taxes rather than boosted spending to address very similar economic conditions to those inherited by Obama.
If you want a guru, try Kevin Hassett:
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