Stimulus? No Change With or Without

[Kathianne]

But we're going to see hyperinflation along with the unemployment....


http://www.americanissuesproject.org/blogs/columns/archive/2009/05/14/was-the-stimulus-irrelevant.aspx


Was the Stimulus Irrelevant?
By: Edward Morrissey
In early January, a joint paper [PDF file] by Dr. Christine Romer, then the nominee to chair the Presidential Council of Economic Advisers, and Jared Bernstein from Joe Biden's advisory team painted a bleak view of a world without the off-budget stimulus plan. This paper drove the administration's agenda on the stimulus bill and helped formulate the calculus that gave a much higher priority to public-works projects as opposed to tax cuts and business incentives. Failure to act, Romer and Bernstein warned, could have dire consequences (page 5):

The U.S. economy has already lost nearly 2.6 million jobs since the business cycle peak in December 2007. In the absence of stimulus, the economy could lose another 3 to 4 million more. Thus, we are working to counter a potential total job loss of at least 5 million. As Figure 1 shows, even with the large prototypical package, the unemployment rate in 2010Q4 is predicted to be approximately 7.0 percent, which is well below the approximately 8.8 percent that would result in the absence of a plan.

Sounds dire, doesn't it? Unemployment could hit 8.8 percent if Congress didn't start throwing money away immediately, and five million jobs could disappear. In fact, Figure 1 details the challenge better than the text does:...

[red states rule]

There should be absolutely no bailouts and no stimulus packages. If a business has a good business plan, produces a good product, and offers their workers fair pay they wouldn't need a bailout.

Instead companies and banks are being rewarded and the small companies that tried to do it right are getting screwed.

I think our govt right now is just a bunch of enablers and we will never learn to change "for the better" until they cut the apron strings.

We all need to learn a big lesson with business and personal finances. This country's spending and debt is out of control. There should be no government interference with business.

[Insein]

Call it what it really is. Government Theft Program. Giving money out in the trillions makes it easier to steal a couple $100 mil here and there. There was no intention of stimulating the economy. They used it as an excuse to steal huge amounts of money with half the people's consent.

[Joe Steel]

But we're going to see hyperinflation along with the unemployment....

You're making a prediction because someone else's prediction was wrong. Do you think you're better at predicting economic phenomena than the two economists are?

[red states rule]

You're making a prediction because someone else's prediction was wrong. Do you think you're better at predicting economic phenomena than the two economists are?

Where is the stimulus Joe? $4 trillion has been spent and yet unemployment keeps going up, auto companies are closing plants and dealerships, thousands are losing their jobs, and the Dow is not respnding to the bright future libs have predicited

[Joe Steel]

Where is the stimulus Joe? $4 trillion has been spent and yet unemployment keeps going up, auto companies are closing plants and dealerships, thousands are losing their jobs, and the Dow is not respnding to the bright future libs have predicited

Slow and steady is the best way to the the job.

[red states rule]

Slow and steady is the best way to the the job.

Yep, the Obama economy is heading south slow and steady Joe

[Insein]

Yep, the Obama economy is heading south slow and steady Joe

I believe its going alot faster then that.

As for inflation, its a foregone conclusion. You can't print trillions of dollars and dump it into a depressed economy without seeing interest rates take off. Inflation is going to hit hard in 2010.

[Joe Steel]

I believe its going alot faster then that.

As for inflation, its a foregone conclusion. You can't print trillions of dollars and dump it into a depressed economy without seeing interest rates take off. Inflation is going to hit hard in 2010.

Sure you can.

Adding purchasing power slowly to an economy with a good deal of unused capacity and unfilled demand won't necessarily lead to inflation.

[red states rule]

Sure you can.

Adding purchasing power slowly to an economy with a good deal of unused capacity and unfilled demand won't necessarily lead to inflation.

$4 trillion in 120 days is not slow Joe - unless you think Obama, Reid, and Pelosi are not spending enough

I find it so telling libs are not worried about deficits and the national debt as they were when Bush was President

[Joe Steel]

$4 trillion in 120 days is not slow Joe - unless you think Obama, Reid, and Pelosi are not spending enough

I find it so telling libs are not worried about deficits and the national debt as they were when Bush was President

First of all, the money hasn't been spent yet. That might be the cost of the plan but it's not the total of expenditures already made.

Secondly, I complained abut Bush's war crimes not his spending.

[red states rule]

First of all, the money hasn't been spent yet. That might be the cost of the plan but it's not the total of expenditures already made.

Secondly, I complained abut Bush's war crimes not his spending.

Here is what has been spent so far Joey


Let us first examine Obama's successes (at least, from the White House's point of view):

Passage of the $787 Billion Stimulus Package

Passage of $3.6 Trillion Budget

Completion of the Bank Rescue Plan

Home Foreclosure plan

Action plan for GM and ChryslerPassage of SCHIP for children's health care
Plan to scale down Iraq War by August 2010

Increase surge of troops in Afghanistan

For liberals, that is a great start.

Now, let us look at the failures, from a conservatives point of view:
The almost $800 Billion stimulus package has barely produced a dent in the economy. Less than 2% of that total has been spent at this point, even considering Mr. Obama's proposed 'shovel-ready' projects.

The $3.6 Trillion Budget also promises to increase the National deficit by $4 Trillion by the end of his first term; in other words, he will spend almost twice as much in four years as Bush 43 did in 8 years. And there appears to be no end in sight.

The country lost approximately 2.3 million jobs so far in 2009. The stock market is below inaugural levels.

http://www.associatedcontent.com/article/1692925/obamas_first_100_days.html

[Insein]

Sure you can.

Adding purchasing power slowly to an economy with a good deal of unused capacity and unfilled demand won't necessarily lead to inflation.

As red states said, its not slow. Adding a budget for 2010 that is more money then all the previous budgets combined is not a "slow" increase of anything. Its a dump. Printing money that fast will send inflation and interest rates through the roof. Jimmy Carter years all over again.