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View Full Version : Stimulus didn't save the nation from depression



red states rule
09-25-2010, 07:09 AM
Another report on how a trillion dollars was wasted





Wait a minute -- economists are now saying the Great Recession ended in June of 2009, when the economy began growing again.

But President Barack Obama is defending the $787 billion stimulus package, which failed to deliver the promised reduction in unemployment, by claiming it kept the economy from falling into a depression.

And yet, according to some economists, the recession was over before the stimulus dollars were spent.

We've been had, folks. Nearly $800 billion of our money was spent to end a recession that was already over. The massive spending didn't put Americans back to work. So all we end up with is a hugely expanded government and a gigantic debt that will be repaid with higher taxes on either ourselves or our grandchildren


Worse, all that spending likely made conditions worse and prolonged our misery because it sucked money out of the private sector, and the policy-making that surrounded it gave job creators the jitters.

"The stimulus had no effect at all," says Harry Veryser, a University of Detroit Mercy economics professor and author of an upcoming book on the collapse.

At least it has had no effect on employment, the measure everyday Americans use to determine when a recession has ended.

Gary Wolfram, an economist at Hillsdale College, contends employment is lagging because fears that the deficit will lead to higher taxes, as well as the uncertainty about the costs of Obamacare, have kept investors sitting on more than $3 trillion private dollars that ought to be going into job creation.

"As long as government creates this high level of uncertainty about the future, employment will not rebound," he says.

http://detnews.com/article/20100923/OPINION03/9230338/1008/OPINION01/Stimulus-didn-t-save-the-nation-from-depression