The Chart That Shows Just How Wrong Obama’s Stimulus Projections Were

Many people ask: What could the government have done better to cushion the blow from the recession? Of course a sizable group would say that the government should have done nothing in the first place, but that is a different article for a different day.

One side of the political aisle argues that pouring billions of dollars into various stimulus schemes was an appropriate response. The other side argues that it was a fruitless waste of taxpayer money.

However, both sides seem to unanimously agree that it’s not so much that the Obama administration dealt poorly with the recession, it’s that they didn’t understand what they were dealing with at all.

How do we know what the rate would have been had we no had a stimulus plan? Seems like it is hypothetical.

We don't know. What we do know is that both projections, with and without stimulus, were made by the administration to sell the stupid stimulus plan. However, only a total economic idiot wouldn't know that the economy would have been much better off had no stimulus been passed. This high rate of unemployment was predicted by more than one conservative economist, and if fact it is even higher than the chart shows, since the chart is made up of rigged Bozo administration numbers.

here is the chart. Like we needed further proof that Obummer and the Regime are incompetent.

Here's where the brainwashing of America becomes so obvious: Obama is NOT incompetent, the plan to destroy the American economy is proceeding along just fine. What you apparently can't comprehend is that this is being done on purpose.

WHY do you think Obama had piles of $$ to get elected? It wasn't his ghetto loving base who gave him $hundreds of millions.

WHO do you think Obama works for? Reverend Wright?

If you wanted to destroy the United States, would you attack in Pearl Harbor style?

Would you buy a POTUS who costs less than a single warship?

Even Rush Limbaugh, as big a fool as he is, sometimes says "HE'S DOING IT ON PURPOSE." But he's an American and Americans immediately reject CONSPIRACIES. They could never get away with a conspiracy, our top notch MSM would expose it immediately, or so you apparently think.

If you don't consider the most obvious solution, Obama is a Muslim economic terrorist playing liberal, you'll never even suspect what is really the story behind the headlines.

How do we know what the rate would have been had we no had a stimulus plan? Seems like it is hypothetical.

It's more an informed estimate based on a detailed mathematical model, rather than a random guess. The economic models tend to be fairly accurate in the first year, and useful although imperfect in the second year (like mathematical models for the weather, which produce forecasts that are nearly exact in the first week and useful in the second week). What would have happened according to the model, in the absence of exotic, game-changing government action, is almost certainly at least close to the truth within 0.2% in the first year and within 0.6% in the second year.

What happens with the "Stimulus" is a different story. The naive model assumes that you have no second order effects, meaning that you can simply nudge the parameters for economic spending and employment in response to the extra government dollars in the economy. This is classic liberal thinking, and it is the downfall of liberal applications of modeling. As good as the math is at estimating the future under the assumption that people continue to react as before, mathematical models cannot predict how people will react to a massive government intervention, so the human response has to be input by those writing the model. In the real world, those who create jobs were naturally scared at the sight of massive government waste, and they reacted conservatively. Conservatives expected that response, but the liberals dismissed our reactions because the naive model and their simple-minded understanding of where wealth comes from told them otherwise.

The bottom line: The difference between "Actual" and "Without Stimulus" tells us within a fraction of one percent what the Stimulus cost us in jobs, quite a price to add to the $1T in wasted tax dollars. On the up side, from the perspective of Pelosi, Reid, and Obama, Dems don't consider this a waste, since most of that money went to their friends, families, and followers, while our children are the only ones productive enough to pay off their debts.

I agree that the Regime is trying to transform the system. I disagree that they were using this argument in the chart just to fool people. They genuinely believed that their Keynesian BS was going to keep Unemployment down. There have been more than one article lately where insiders have said that they are all shocked that them spreading all this money around and taking over companies and over regulating the rest didn’t get Ump under 7%. They are all shocked as well that throwing tons of money at Green industries didn’t have them flourishing. That is why all of Obummers economic team bailed and went back to academia where they can hide out.

Why would the regime just want to crash the system? Do you think that they are happy to be losing elections and slowly becoming extinct instead of still being in charge and passing more big Gov’t programs to really transform the system? This isn’t how they envisioned to future. They were supposed to be in charge for decades implementing Socialism, not two years.

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.