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Did Obama Really Prevent A Second Great Depression?
IBD Editorials ^ | June 20, 2011 | JOHN MERLINE, INVESTOR'S BUSINESS DAILY

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 ...


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS:

1 posted on 06/20/2011 4:52:23 PM PDT by Kaslin
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To: Kaslin

Is the Pope Jewish?


2 posted on 06/20/2011 4:53:10 PM PDT by Sacajaweau
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To: Kaslin

No, the Depression he gave us is anything but Great.


3 posted on 06/20/2011 4:56:06 PM PDT by Mygirlsmom (I'm not so concerned he was born in a 3rd world toilet as I am him trying to turn America into one.)
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To: Kaslin

He dug the ditch that we drove the bus into! Oh wait was that a bump in the road?


4 posted on 06/20/2011 4:56:33 PM PDT by tallyhoe
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To: Kaslin
My five year olds’ classic excuses: “I didn't do it” and “It could have been worse”.
5 posted on 06/20/2011 4:57:21 PM PDT by Huskrrrr
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To: Kaslin

No.


6 posted on 06/20/2011 4:57:36 PM PDT by Brilliant
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To: Kaslin

How many guesses do I get?


7 posted on 06/20/2011 4:57:55 PM PDT by Williams (Honey Badger Don't Care)
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To: Kaslin

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.


8 posted on 06/20/2011 4:58:46 PM PDT by SERKIT ("Blazing Saddles" explains it all......)
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To: Kaslin

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?


9 posted on 06/20/2011 4:59:02 PM PDT by LegendHasIt
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To: Kaslin
Yes, but only because of QE1 and QE2, which simply delayed and exacerbated the oncoming crash.

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.

10 posted on 06/20/2011 4:59:32 PM PDT by Carling (At some point, those surrounding Obama have to realize that they are working for a psychopath)
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To: Kaslin

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.


11 posted on 06/20/2011 5:01:16 PM PDT by SpaceBar
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To: Kaslin

The only thing that Obama has accomplished is to make the Jimmy Carter administration look like the good old days.


12 posted on 06/20/2011 5:01:29 PM PDT by hflynn
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To: Kaslin

Reagan turned a worse economy around in 2 years.


13 posted on 06/20/2011 5:08:34 PM PDT by Huskrrrr
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To: Kaslin

No, he has prevented a second Great Depression from being generally recognized. For now...


14 posted on 06/20/2011 5:10:12 PM PDT by Mr. Jeeves ( "The right to offend is far more important than any right not to be offended." - Rowan AtkNtinson)
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To: Kaslin

He’s made me greatly depressed. Does that count?


15 posted on 06/20/2011 5:13:19 PM PDT by AmusedBystander (The philosophy of the school room in one generation will be the philosophy of government in the next)
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To: Sacajaweau

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?


16 posted on 06/20/2011 5:15:10 PM PDT by Fishtalk (http://patfish.blogspot.com/201102/freerepublic-ping-list-compilation.html-Freep Ping Blog post)
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To: Kaslin

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


17 posted on 06/20/2011 5:22:59 PM PDT by Carlucci (Don't care what religion my president is, as long as he worships -- THE CONSTITUTION!)
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To: SERKIT
He “saved us” from a second Great Depression, and if you are still employed after January 2009, he “saved” your job, too.

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!!

18 posted on 06/20/2011 5:24:30 PM PDT by randog (Tap into America!)
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To: Carlucci

Of course not


19 posted on 06/20/2011 5:34:34 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Fishtalk
couple of things....first the Dubya economy was roaring for almost his entire presidency.

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

20 posted on 06/20/2011 5:45:50 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

I’ve been greatly depressed since the day he was elected!


21 posted on 06/20/2011 5:47:41 PM PDT by lonestar (It takes a village of idiots to elect a village idiot.)
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To: Kaslin
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.

How can this claim even be made because the calculations for unemployment changed radically in 1994?

22 posted on 06/20/2011 5:50:28 PM PDT by frogjerk (Liberalism: The ideology of envy.)
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To: Kaslin
US Housing Crisis Is Now Worse Than Great Depression

http://www.cnbc.com/id/43395857

Why You've Never Heard of the Great Depression of 1920

http://www.youtube.com/watch?v=czcUmnsprQI&feature=player_embedded

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.

23 posted on 06/20/2011 5:52:20 PM PDT by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
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To: Carling
Yes, but only because of QE1 and QE2, which simply delayed and exacerbated the oncoming crash.

That may well be the case. I hope not. Most in this forum don't have clue.

24 posted on 06/20/2011 5:57:46 PM PDT by Doe Eyes
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To: Kaslin

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.


25 posted on 06/20/2011 6:03:22 PM PDT by sport
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To: LegendHasIt

He is doing it with a Public Private Partnership. What a disaster.


26 posted on 06/20/2011 6:18:09 PM PDT by screaminsunshine (Socialism...Easier said than done.)
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To: Kaslin

Utter nonsense.


27 posted on 06/20/2011 6:24:35 PM PDT by Bon mots
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To: Kaslin
One of the Obama themes that will forever irritate me is the refrain that it was they who completed the rescue of GM and Chrysler. Even if one disregards the fact that their work may have destroyed contract law, the idea that there would not now be these auto companies functioning at this date is an absolute LIE!

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.)

28 posted on 06/20/2011 6:26:37 PM PDT by SES1066 (Michael Moore - a pernicious progluddite of socialism!)
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To: Kaslin
If we figured our unemployment rate in the same way that we did during the Great Depression... or if we figured the unemployment rate during the Great Depression in the same manner that we do today, something interesting comes to light.

WikiAnswers:

http://wiki.answers.com/Q/What_was_the_unemployment_rate_during_the_Great_Depression

“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.

LLS

29 posted on 06/20/2011 6:36:10 PM PDT by LibLieSlayer ("GIVE ME LIBERTY OR GIVE ME DEATH"! I choose LIBERTY and PALIN!)
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To: Kaslin

This is a solvency crisis. This wasn’t a liquidity crisis, though the government treated it like one.


30 posted on 06/20/2011 7:03:33 PM PDT by griswold3 (Character is destiny)
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To: Kaslin
Did Obama Really Prevent A Second Great Depression?

LMAO!!
That communist p.o.s. caused the current Greater Depression.

31 posted on 06/20/2011 7:07:14 PM PDT by Lancey Howard
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To: Lancey Howard

You said it.


32 posted on 06/20/2011 7:21:03 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

What a joke! The Obama administration has NOT saved anyway from anything.


33 posted on 06/20/2011 8:23:47 PM PDT by Grey Eagle
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To: Kaslin

What a joke! The Obama administration has NOT saved anyone from anything.


34 posted on 06/20/2011 8:24:01 PM PDT by Grey Eagle
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To: Kaslin

Sure — and it was all the result of that inspired stroke of genius “Cash for Clunkers”.


35 posted on 06/20/2011 8:26:13 PM PDT by Dionysius (Jingoism is no vice in these troubled times.)
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To: WOBBLY BOB

“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!!!


36 posted on 06/20/2011 8:35:22 PM PDT by dalereed
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To: Kaslin

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.


37 posted on 06/20/2011 11:32:39 PM PDT by Freedom_Is_Not_Free (SP12: Sarah, they called Reagan "unelectable", too.)
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To: Freedom_Is_Not_Free

I got thuh O-ba-ma blooooooooz


38 posted on 06/21/2011 12:07:00 AM PDT by HiTech RedNeck (Hawk)
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To: Kaslin

No.

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...”


39 posted on 06/21/2011 3:47:14 AM PDT by Victoria_R (Believers in VERY small government: Count Mountjoy/Benter in 2012!!!)
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To: SERKIT
... if you are still employed after January 2009, he “saved” your job, too.

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.

40 posted on 06/21/2011 8:55:26 AM PDT by Mind-numbed Robot (I retain the right to be inconsistent, contradictory and even flat-out wrong!)
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To: Huskrrrr

“Reagan turned a worse economy around in 2 years.”

Great point.


41 posted on 06/21/2011 9:47:28 AM PDT by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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