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New Evidence That The Obama Stimulus Was a Bust
powerline ^ | 8/22/10 | paul

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 ...


TOPICS: Editorial; Front Page News; News/Current Events
KEYWORDS: bust; evidence; stimulus
the actual performance of the economy with respect to jobs is almost exactly what they said would it would be if we had done nothing
1 posted on 08/22/2010 10:39:09 AM PDT by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping


2 posted on 08/22/2010 10:39:45 AM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum

who needs anymore prooof that its a bust.


3 posted on 08/22/2010 10:40:13 AM PDT by dalebert
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To: Nachum

Well, all you have to do is look around to see that the stimulus has not and will not work.


4 posted on 08/22/2010 10:40:44 AM PDT by rockabyebaby (We are sooooooooooooooooooooooooooooooooo screwed!)
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To: Nachum
Obama's Jobs Defecit
5 posted on 08/22/2010 10:41:20 AM PDT by MNJohnnie (The problem with Socialism is eventually you run our of other peoples money. Lady Thatcher)
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To: Nachum

The BO/BS stimulus achieved its purpose. It expanded the federal government


6 posted on 08/22/2010 10:42:27 AM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: Nachum

How did you spend your $8,700 in stimulus money?
Congress has divvied up the $1 trillion stimulus. Where did your share go?

http://www.csmonitor.com/Business/The-Reformed-Broker/2010/0820/How-did-you-spend-your-8-700-in-stimulus-money?


7 posted on 08/22/2010 10:43:32 AM PDT by listenhillary (When will our government stop abusing us and stop hurting our children?)
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To: MNJohnnie

Social Justice is Bull Crap.


8 posted on 08/22/2010 10:45:38 AM PDT by bmwcyle (It is Satan's fault)
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To: Nachum
Where's My V-Shaped Recovery?
9 posted on 08/22/2010 10:46:38 AM PDT by blam
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To: Nachum

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.


10 posted on 08/22/2010 10:57:24 AM PDT by purplelobster
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To: Nachum
It's about time we quit playing the game and calling this 800bn a “stimulus” package. It was a political graft payoff package pure and simple. Anyone who is careful to close primarily Republican owned auto dealerships while taking over ownership of auto manufacturers isn't going to be spending any money just because it will help the economy at large. Like everything else these thugs do, the money they managed to extort from the public in the name of helping the economy was very carefully targeted to help only those who support them.

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.

Regards

11 posted on 08/22/2010 10:59:13 AM PDT by Rashputin (Obama is already insane and sequestered on golf courses or vacations so you won't know it)
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To: Rashputin
Of course it was. The more accurate description is a 'patronage' program.

It is exactly how Chicago politics is run. It was a given that they would do this from day one.

12 posted on 08/22/2010 11:13:53 AM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum

13 posted on 08/22/2010 11:34:19 AM PDT by BenLurkin ("They do their business behind closed doors, and pretend that the world is just beggin' for more.")
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To: Nachum

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.


14 posted on 08/22/2010 11:35:49 AM PDT by HearMe
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To: Nachum

Democrats messed up ‘Keynesian economics’; government stimulus “might work” in a depression, not a recession;

http://online.wsj.com/article/SB123249646698200289.html

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.


15 posted on 08/22/2010 11:40:41 AM PDT by Son House (The Bush Tax Cuts Produced Better Results Than All The Democrat's Stimulus Bills Combined.)
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To: MNJohnnie

Yeah, It’s like getting liposuction, only coming out fatter. It’s time to convict Democrats of Economic Malpractice.


16 posted on 08/22/2010 11:41:26 AM PDT by Son House (The Bush Tax Cuts Produced Better Results Than All The Democrat's Stimulus Bills Combined.)
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To: Nachum
the actual performance of the economy with respect to jobs is almost exactly what they said would it would be if we had done nothing

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.


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

17 posted on 08/22/2010 11:46:24 AM PDT by The Comedian (Evil can only succeed if good men don't point at it and laugh.)
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To: Nachum
We can compare the Obama Stimulus to a country with no stimulus.


18 posted on 08/22/2010 11:52:23 AM PDT by csmusaret (A government that can dictate how much water flows into a toilet is a powerful government indeed.)
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To: Man50D

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.


19 posted on 08/22/2010 11:55:46 AM PDT by Aria ( "The US republic will endure until Congress discovers it can bribe the public with the people's $.")
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To: Nachum

"I am for a government rigorously frugal and simple, applying all the possible savings of the public revenue to the discharge of the national debt; and not for a multiplication of officers and salaries merely to make partisans, and for increasing by every device the public debt on the principle of its being a public blessing."

--Thomas Jefferson to Elbridge Gerry, 1799. ME 10:77
20 posted on 08/22/2010 12:08:27 PM PDT by loveliberty2
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To: Nachum

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


21 posted on 08/22/2010 12:22:16 PM PDT by PMAS
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To: Nachum

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.


22 posted on 08/22/2010 12:24:18 PM PDT by eaglestar
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To: Nachum; TigerLikesRooster

Small Investors Flee Stock Market, Pull $33B From Mutual Funds...
http://www.nytimes.com/2010/08/22/business/22invest.html?_r=1&hp


23 posted on 08/22/2010 12:25:23 PM PDT by Arthur Wildfire! March (Want stimulus? Look to Harding, JFK, and Reagan. Tax cuts w. fiscal restraint -- works every time.)
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To: PMAS

The unspent rest of the stimulous will be used as handouts to thier voter base.


24 posted on 08/22/2010 12:25:55 PM PDT by ronnie raygun (We are our founding fathers keepers)
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To: PMAS

The unspent rest of the stimulous will be used as handouts to thier voter base.


25 posted on 08/22/2010 12:26:01 PM PDT by ronnie raygun (We are our founding fathers keepers)
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To: ronnie raygun

Pretty much the same as the first half


26 posted on 08/22/2010 12:28:57 PM PDT by PMAS
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Barack Obama where are the jobs? Department of Labor announced that initial jobless claims hit 500,000 last week, the highest level in 2010 and highest since last November. In the week ending Aug. 14, the advance figure for seasonally adjusted initial claims was 500,000, an increase of 12,000 from the previous week’s revised figure of 488,000. The 4-week moving average was 482,500, an increase of 8,000 from the previous week’s revised average of 474,500. The Policies of Barack Obama continues to destroy jobs.
27 posted on 08/22/2010 1:28:03 PM PDT by Retired Geek
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To: Nachum

So, a raid on the Treasury for a political payoff for unions and governmnt employees didn’t “stimulate” the economy. Shocking.


28 posted on 08/22/2010 1:35:00 PM PDT by Mad_Tom_Rackham (It is the duty of the patriot to protect his country from its government -- Thomas Paine)
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To: csmusaret
They have no home mortgage deduction, no Freddie and Fannie , and are net energy exporters...and I think they have a balanced budget. Now if The Bamster had made some moves in these arena's where would we be.

And oh yes, they are getting sick of their socialized medicine and are taking baby steps to get it back to free market principles.

29 posted on 08/22/2010 1:39:03 PM PDT by taildragger ((Palin / Mulally 2012 ))
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To: Nachum

Debt is deflationary. If you want to kill an economy, then borrow more money.


30 posted on 08/22/2010 1:40:00 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Nachum
Fund Flows Show An Enormous Panic
31 posted on 08/22/2010 2:09:18 PM PDT by blam
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To: Nachum

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.


32 posted on 08/22/2010 3:42:26 PM PDT by skr (May God confound the enemy)
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To: Nachum
and America takes another one in the........
rlmorel

33 posted on 08/22/2010 5:28:55 PM PDT by Chode (American Hedonist *DTOM* -ww- NO Pity for the LAZY)
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To: Nachum

As if any more proof is needed.


34 posted on 08/22/2010 6:05:58 PM PDT by rdl6989 (January 20, 2013- The end of an error.)
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To: Nachum

Did people ever get the $250.00 they were supposed to get since Obama didn’t raise Social Security?

Just curious.


35 posted on 08/22/2010 6:10:52 PM PDT by Salvation ("With God all things are possible." Matthew 19:26)
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To: Salvation

I believe that the $250 bribe from the administration to seniors will be happening soon. It doesn’t go into effect yet.

N


36 posted on 08/22/2010 6:43:09 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: AdmSmith; Arthur Wildfire! March; Berosus; bigheadfred; blueyon; Convert from ECUSA; dervish; ...

Thanks Nachum. Shouldn’t that be “Evidence that Wrongly or Incorrectly Shows that President Obama’s Stimulus Package Was a Miserable Failure”?


37 posted on 08/22/2010 6:47:38 PM PDT by SunkenCiv ("The bad jazz a cat blows wails long after he's cut out." -- Lord Buckley)
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To: SunkenCiv

LOL


38 posted on 08/22/2010 7:18:15 PM PDT by Lazamataz ("We beat the Soviet Union, then we became them." Lazamataz, 2005)
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To: Mad_Tom_Rackham
the unions and fed employees didnt get much, the "stimulus" funded a run on the banks by foriegn investors cashing in. The construction trade union i am in is pissed and hates Obama because no money went to stimulate infrastructure, 90% of the local's members are still out of work (about 10,000).

even the unions hate obama but like us with the republican party, it's all we got

39 posted on 08/22/2010 8:45:39 PM PDT by KTM rider ( ..........tell me this really isn't happening ! !)
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To: blam

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?


40 posted on 08/22/2010 9:16:25 PM PDT by Pining_4_TX
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To: skr

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.


41 posted on 08/22/2010 9:55:20 PM PDT by Republican Wildcat
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To: Pining_4_TX
"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?"

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)

42 posted on 08/22/2010 10:17:26 PM PDT by blam
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To: blam

43 posted on 08/23/2010 5:16:50 AM PDT by Liz
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To: All
$6.4 Billion Stimulus Goes to Phantom Districts
watchdog.org | November, 2009 | staff
FR Posted August 09, 2010 by bronxville

...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 districts–almost $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 Congress–which, for the record, counts 435 members–in early 2009...

SOURCE http://watchdog.org/1530/6-4-billion-stimulus-goes-to-phantom-districts/

=================================

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.

44 posted on 08/23/2010 5:20:08 AM PDT by Liz
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To: MNJohnnie

I see someone bent the curve afterall.....


45 posted on 08/23/2010 7:07:02 AM PDT by FDNYRHEROES (In just His first 3 days, the War on Terror became the War on Free Speech.)
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To: blam

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.


46 posted on 08/23/2010 9:37:16 AM PDT by Pining_4_TX
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To: blam

*sigh* Of course, I meant advice, not advise. I need more coffee.


47 posted on 08/23/2010 9:38:18 AM PDT by Pining_4_TX
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To: Nachum

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.


48 posted on 08/23/2010 12:58:15 PM PDT by DrC
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To: Pining_4_TX

If you want a guru, try Kevin Hassett:
http://www.bloomberg.com/news/2010-08-23/bury-keynesian-voodoo-before-it-can-bury-us-all-kevin-hassett.html


49 posted on 08/23/2010 1:03:04 PM PDT by DrC
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