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 ...
(sarcasm . . . or is it . . . ?) 8^)
;-)
Stimulus failed because they don’t understand BUSINESS and/or they don’t approve of PROFIT.
Really? The Fed, and central banks all over the world inverted their yield curves right before this recession started.
It failed because the Democrats used it for political payoffs!
CNN will hire her as their newest economics expert.
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.
She’s ignorant enough to work for CNN, that’s for certain!
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.
What is it she does not understand?
Turn in your badge Romer and go for that car hop job.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.