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Outgoing Obama Aide Admits: Stimulus Failed Because We Didn't Understand The Recession
The Business Insider ^ | 9-1-2010 | Joe Weisenthal

Posted on 09/01/2010 6:12:21 PM PDT by blam

Outgoing Obama Aide Admits: Stimulus Failed Because We Didn't Understand The Recession

Joe Weisenthal
Sep. 1, 2010, 8:29 PM

As she prepares to leave The White House, outgoing economic advisor Christina Romer has delivered something of a valedictory speech to the National Press Club. The title: Not My Father's Recession.

For Romer, her Father's recession was the one in the early 80s, when unemployment surged above 10%, and Romer's own father got laid off.

But the title basically tells you what you need to know: It's different this time -- this recession was not anything like the Fed-induced recession of her father -- and the old recovery playbook could not possibly go as anticipated.

Here's the key part of the text, via Brad DeLong's blog:

But compared with the problems we face, the turnaround has been insufficient....

In a report that Jared Bernstein and I issued during the transition, we estimated that by the end of 2010, a stimulus package like the Recovery Act would raise real GDP by about 3 1⁄2 percent and employment by about 31⁄2 million jobs, relative to what otherwise would have occurred. As the Council of Economic Advisers has documented in a series of reports to Congress, there is widespread agreement that the Act is broadly on track to meet these milestones....

What the Act hasn’t done is prevent unemployment from going above 8 percent, something else that Jared and I projected it would do. The reason that prediction was so far off is implicit in much of what I have been saying this afternoon. An estimate of what the economy will look like if a policy is adopted contains two components: a forecast of what would happen in the absence of the policy, and an estimate of

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: obama; recession; romer; stimulus

1 posted on 09/01/2010 6:12:22 PM PDT by blam
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To: blam

This Administration doesn’t “understand” anything

Good riddance. But take the rest of them with you.


2 posted on 09/01/2010 6:15:00 PM PDT by A_Former_Democrat (NO MOS-que AP: It's the "GROUND ZERO MOSQUE")
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To: blam

That’s par for the course with these clowns: they’re failing at everything because they understand nothing.


3 posted on 09/01/2010 6:15:46 PM PDT by Psycho_Bunny (Hail To The Fail-In-Chief)
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To: blam

Thanks for stating the OBVIOUS! =.=


4 posted on 09/01/2010 6:16:49 PM PDT by cranked
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To: blam

The guy in charge of the irs can’t figure out how to pay his taxes, so he doesn’t.


5 posted on 09/01/2010 6:17:17 PM PDT by mirkwood (FUBO)
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To: blam
Ah...THIS Christina Romer?


6 posted on 09/01/2010 6:17:19 PM PDT by rlmorel (America: Why should a product be deemed a failure if you ignore assembly and operation instructions?)
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To: blam
Coming soon: Outgoing Health Czar: Obamacare Failing Because We Didn't Understand Health Care.
7 posted on 09/01/2010 6:18:18 PM PDT by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: blam

“Everything about socialism is sham and affectation.” - 23.11 Ch23 Evil; Economic Harmonies; Frederic Bastiat 1801-1850


8 posted on 09/01/2010 6:18:36 PM PDT by PGalt
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To: blam
Oh.

So now that they "understand", they'll stop doing what they're doing and do something else... /s

9 posted on 09/01/2010 6:19:05 PM PDT by THX 1138 ("Harry, I have a gift.")
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To: blam

Epic Fail. Go back to Berkley Christina!


10 posted on 09/01/2010 6:19:15 PM PDT by mylife (Opinions $1 Halfbaked 50c)
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To: blam

Unless and until a person can cogently describe the difference between “supply and demand” and “quantity supplied and quantity demanded” that person is not qualified so speak on or set policy about economics.

This low bar eliminates probably 100 Senators and 435 or so House members...


11 posted on 09/01/2010 6:21:23 PM PDT by freedumb2003 (Either we have principles or we are just liberals following the winds a bit starboard...)
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To: blam

She’s right, this isn’t the same recession as her dad’s. In her dad’s day, there was a real president in charge.


12 posted on 09/01/2010 6:22:55 PM PDT by tanuki (Obamacare, Cap and Tax, Amnesty, in that order....)
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To: THX 1138

“So now that they “understand”, they’ll stop doing what they’re doing and do something else... /s”

Heck No! We are now hearing talk of another stimulus. They will continue to do the same thing and expect different results. Insanity...yes!


13 posted on 09/01/2010 6:25:29 PM PDT by alice_in_bubbaland (Professional Politicians are a Threat to the Republic! Remove them on 11-2-10!)
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To: blam

I think we are seeing a new Democrat strategy unfolding, the, “ Oops, we were wrong and we are sorry.” strategy.

Bob Beckel recently told Hannity that he now realizes that with all their social programs and such the Democrats have created an underclass. He said they meant well but they were wrong, a big oopsy.

They are about to have their hats handed to them in the elections, if we actually have elections, and they are now begging for mercy with a “We didn’t mean it.” plea. Tell them that Trent Lott is gone.


14 posted on 09/01/2010 6:27:27 PM PDT by Mind-numbed Robot (Not all that needs to be done needs to be done by the government)
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To: blam

Understand the recession? Hell, these people don’t understand Econ 101.


15 posted on 09/01/2010 6:27:58 PM PDT by gov_bean_ counter (Sarah Palin - For such a time as this...)
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To: blam
Christina Romer thought "In The Long Run We are All Dead" was just a joke by Keynes. It is a monumental shame these egghead academics have no idea how their "idol's" philosophy amount to, "It's better to burn out, than to fade away."


16 posted on 09/01/2010 6:29:17 PM PDT by rollo tomasi (Working hard to pay for deadbeats and corrupt politicians)
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To: blam

They’re stupid beyond belief!

Fortunately America is waking up to that fact
and it will be rectified soon.


17 posted on 09/01/2010 6:31:05 PM PDT by TribalPrincess2U (demonicRATS= Obama's Mosque, taxes, painful death. Is this what you want?)
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To: Steely Tom; DoughtyOne; sickoflibs; stephenjohnbanker
Coming soon: Outgoing Health Czar: Obamacare Failing Because We Didn't Understand Health Care.

LOL!

18 posted on 09/01/2010 6:32:39 PM PDT by ding_dong_daddy_from_dumas (Lt. Col. Ralph Peters: Obama is the dog who caught the fire truck!)
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To: blam

Full Professor, UC Bezerkeley.

Believes own BS.


19 posted on 09/01/2010 6:36:47 PM PDT by truth_seeker
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To: blam

It was a recession until Obama turned it into a depression.


20 posted on 09/01/2010 6:38:40 PM PDT by vbmoneyspender
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To: blam
Well, she can kiss that cushy lobbyist job good bye!

(sarcasm . . . or is it . . . ?) 8^)

21 posted on 09/01/2010 6:41:02 PM PDT by airborne (Why is it we won't allow the Bible in school, but we will in prison? Think about it.)
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To: ding_dong_daddy_from_dumas

;-)


22 posted on 09/01/2010 6:45:11 PM PDT by stephenjohnbanker (((.Go troops! " Vote out RINOS. They screw you EVERY time" Jim Robinson)
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To: blam

Stimulus failed because they don’t understand BUSINESS and/or they don’t approve of PROFIT.


23 posted on 09/01/2010 6:49:12 PM PDT by Right Wing Assault (The Obama magic is <strike>fading</strike>gone.)
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To: blam
It's different this time -- this recession was not anything like the Fed-induced recession of her father

Really? The Fed, and central banks all over the world inverted their yield curves right before this recession started.

24 posted on 09/01/2010 6:49:45 PM PDT by Moonman62 (Politicians exist to break windows so they may spend other people's money to fix them.)
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To: blam

It failed because the Democrats used it for political payoffs!


25 posted on 09/01/2010 6:50:04 PM PDT by LiteKeeper ("It's the peoples' seat!")
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To: airborne
Well, she can kiss that cushy lobbyist job good bye!

CNN will hire her as their newest economics expert.

26 posted on 09/01/2010 6:53:29 PM PDT by Right Wing Assault (The Obama magic is <strike>fading</strike>gone.)
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To: TribalPrincess2U
I have come to the conclusion that America (at least the Obama supporting America) has not been asleep...they have been drugged.

The sheeple who hung onto the Democrat theories were drugged into a fog by Obama and his empty promises/lies and the word pictures he held out for them of some Utopian life they would have with him in office. Drugged by the Kool-Aid the Dems passed around (since Pelosi and Reid came to power) that made them believe the delusion of a Democrat Congress that was going to be an honest Congress. And drugged by the sweet smelling, but smokey promise that the government will solve all their problems that they were too lazy to resolve on their own.

The Druggies are now coming out of their stupor.

Real life looks a bit different than it did when they were hallucinating.

27 posted on 09/01/2010 6:54:32 PM PDT by CitizenM ("Do you miss me yet?" Yes, George, we do.)
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To: blam
It's because they don't know what the heck they are doing:
28 posted on 09/01/2010 6:55:21 PM PDT by CharlesMartelsGhost
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To: Right Wing Assault

She’s ignorant enough to work for CNN, that’s for certain!


29 posted on 09/01/2010 6:58:37 PM PDT by airborne (Why is it we won't allow the Bible in school, but we will in prison? Think about it.)
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To: LiteKeeper

The economy is circling the drain because ObOzO is such a colossal failure, that, failed policies are the only ones he can see.

I still don’t know if TARP was a good idea, but, given a Bolshecrat Congress it may have been the best Bush could expect without getting something worse, which, arrived 6 months later.


30 posted on 09/01/2010 7:02:53 PM PDT by depressed in 06 (2010, the beginning of the end of our long national nightmare.)
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To: blam
She is a full professor of Economics (supposedly) at Berkely.

What is it she does not understand?

Turn in your badge Romer and go for that car hop job.

31 posted on 09/02/2010 4:05:45 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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