Skip to comments.Did Obama Really Prevent A Second Great Depression?
Posted on 06/20/2011 4:52:23 PM PDT by Kaslin
t has become a common refrain at the White House and among administration supporters that President Obama's aggressive efforts to stimulate growth prevented an economic catastrophe.
"We had to hit the ground running and do everything we could to prevent a second Great Depression," Obama told supporters last week.
Politically, the claim makes sense. Casting the challenge Obama faced as immense can help explain the economy's lackluster performance in the two years since the recession officially ended.
But is it an accurate portrayal of what really happened?
IBD reviewed records of economic forecasts made just before Obama signed the stimulus bill into law, as well as economic data and monthly stimulus spending data from around that time, and reviews of the stimulus bill itself.
The conclusion is that in claiming to have staved off a Depression, the White House and its supporters seem to be engaging in a bit of historical revisionism.
Economists weren't predicting a Depression.
White House economists forecast in January 2009 that, even without a stimulus, unemployment would top out at just 8.8% well below the 10.8% peak during the 1981-82 recession, and nowhere near Depression-era unemployment levels.
The same month, the Congressional Budget Office predicted that, absent any stimulus, the recession would end in "the second half of 2009." The recession officially ended in June 2009, suggesting that the stimulus did not have anything to do with it.
(Excerpt) Read more at investors.com ...
Is the Pope Jewish?
No, the Depression he gave us is anything but Great.
He dug the ditch that we drove the bus into! Oh wait was that a bump in the road?
How many guesses do I get?
He “saved us” from a second Great Depression, and if you are still employed after January 2009, he “saved” your job, too. So bend the knee to the one who bows to Kings and Potentates.
The correct question to ask is:
Is 0bama in the process of intentionally destroying the economy AND society.... Or is he doing it through mere ignorance?
It would have been better for us all to just bottom out in 2009. Instead, we have inflation looming over all of us within the next year or two.
Obviously without a control experiment the question regarding Obama’s policies can never be answered with absolute 100% certainty, but an honest assesment of the known facts, market trends, economic and business indicators, and facts yet unknown, will no doubt stronly support the notion that Obama monumentally blew it, perhaps even deliberately.
The only thing that Obama has accomplished is to make the Jimmy Carter administration look like the good old days.
Reagan turned a worse economy around in 2 years.
No, he has prevented a second Great Depression from being generally recognized. For now...
He’s made me greatly depressed. Does that count?
I have believed this since day 1.
couple of things....first the Dubya economy was roaring for almost his entire presidency.
So Obama gets elected and suddenly the country’s going to hell in an economic handbasket?
And he needed, of course, lots of money to fix the problem. He came off with such dire predictions that I got scared.
First, the economic downturn was likely a part of a normal turn of events. I remember the dot.com bust...some other economic downturns, some worse than others. The economy always comes back, sometimes fast, sometimes slower.
Also there was that little scheme by the Democrats involving giving houses to everyone who wants one, including Crystal the stripper and her bankrupt pimp.
This downtown was part of that housing bust. It was a creation of the Democrats to hide their crimes with that mess.
It sure would be nice if our opposition party would take this up and teach the public the truth. I mean it’s not like we don’t have an Internet or anything.
Now that I think it about, could ALL of the Republicans not known nothing about the Fannie and Freddie Mae nonsense?
You’d think they’d have known something, huh?
Those who assert that Obama averted a 2nd great depression mmust also readily stipulate that George W. Bush prevented an Iraqi nuclear holocaust. But they would never do that
And did you hear how he single-handedly repelled a Chinese invasion? And have you heard about the massive bird flu epidemic that wiped out 1/2 of the US population? Of course you didn't--thanks to SuperZero!!
Of course not
You are correct. Things turned around for the worse, when Pelosi took over in January 2007 as Speaker of the House. Remember the recession started in December of 2007. Also the unemployment rate rose after she became Speaker and dingy Harry became Majority leader.
Like Debbie said the other day. The Democrats own the economy. They made it worse and they also drove the unemployment rate up
I’ve been greatly depressed since the day he was elected!
How can this claim even be made because the calculations for unemployment changed radically in 1994?
Why You've Never Heard of the Great Depression of 1920
In this fascinating speech, economist Thomas Woods explains why you've never heard of the Depression of 1920. Because it was over within a year, as the government let it run its course.
That may well be the case. I hope not. Most in this forum don't have clue.
He hasn’t prevented one, but, he is damn sure going to cause one. In fact, it is well on its way at this time. The parasites that voted for him are going o be in trouble when the producers do not have any money for the Government to steal for them. It is going to get rough but the producers will mostly survive. obama’s parasites will not.
He is doing it with a Public Private Partnership. What a disaster.
No, these companies were NOT "Too Big to Fail" but they most definitely were and are too big to DIE. A pre-packaged bankruptcy should have been the process and anyone who thinks that the results from that would have been no GM or Chrysler is dumb enough to vote for Obama a second time. This most definitely includes all of the UAW hierarchy that would otherwise have been presiding over a much smaller base (and probably pulling strike after strike on the new auto companies.)
“What was the unemployment rate during the Great Depression?
Current unemployment numbers would be between 5 percent to 10 percent higher if calculated in the same way as in the past; conversely, the numbers from the 1930s and 1940s would be 5 percent to 10 percent lower if calculated using our contemporary methods.
Now that is just about an even trade off... and even if the Great Depression had say 5 percent (or a bit) more unemployed at the peak in 1933... and we are still bleeding jobs at an accelerated rate... if we are not already there... we are certainly pulling into the station.
This is a solvency crisis. This wasn’t a liquidity crisis, though the government treated it like one.
That communist p.o.s. caused the current Greater Depression.
You said it.
What a joke! The Obama administration has NOT saved anyway from anything.
What a joke! The Obama administration has NOT saved anyone from anything.
Sure — and it was all the result of that inspired stroke of genius “Cash for Clunkers”.
“Why You’ve Never Heard of the Great Depression of 1920”
My dad told me about it he was 2 years out of high school and had a good job.
A full blown depression is exactly what we need now!!!
We are in a 2nd great depression. It just takes a long time to run its course so a lot of people don’t recognize it. Among those who don’t recognizes it are most economists who should recognize it.
I got thuh O-ba-ma blooooooooz
If anything, Obama and his stimulus bills have just made it worse and prolonged it.
The previous administrations didn’t help either. Every 10 or 20 years somebody gets it into their head that they’ve figured out how to get around economic principles and then economic cycles reassert themselves with a vengeance.
I’m sure the Ivy League “elite” and government types decided “Central planning failed because of the inability to collect timely statistics, but now we have computers...”
Why doesn't some pundit ask Obama why he didn't save the jobs of those who lost them? "Saving" the jobs of those who are working is easy, just get out of the way.
“Reagan turned a worse economy around in 2 years.”