Skip to comments.Outgoing Obama Aide Admits: Stimulus Failed Because We Didn't Understand The Recession
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
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 hasnt 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
(Excerpt) Read more at businessinsider.com ...
This Administration doesn’t “understand” anything
Good riddance. But take the rest of them with you.
That’s par for the course with these clowns: they’re failing at everything because they understand nothing.
Thanks for stating the OBVIOUS! =.=
The guy in charge of the irs can’t figure out how to pay his taxes, so he doesn’t.
“Everything about socialism is sham and affectation.” - 23.11 Ch23 Evil; Economic Harmonies; Frederic Bastiat 1801-1850
So now that they "understand", they'll stop doing what they're doing and do something else... /s
Epic Fail. Go back to Berkley Christina!
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...
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.
“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!
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.
Understand the recession? Hell, these people don’t understand Econ 101.
They’re stupid beyond belief!
Fortunately America is waking up to that fact
and it will be rectified soon.
Full Professor, UC Bezerkeley.
Believes own BS.
It was a recession until Obama turned it into a depression.