Thursday, February 18, 2010
Obama and Republicans Clash Over Stimulus Bill One Year Later (2/22)
Most economists agree that the stimulus bill is working. Was it worth the money we spent? What economic signals should occur before we stop spending??
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I don't think we can judge whether the bill is worth the money spent until it has actually reached the end of its run (which is another year from now). Yet I do believe that if this article's calculations of jobs created and saved are correct, then the bill is indeed working (despite some obvious flaws in spending...). However, some indicators that the recession is ending would be an increase in consumer spending on goods, a decrease in the unemployment rate, and an increase in producer spending on inputs (raw materials). There will also be more trust from consumers in the banking industry, as they begin to invest again (the stock market is a good indicator of the end of economic downturn).
ReplyDeleteThere are many ways to measure success. One indisputable way is to take a man at his work. Inability to keep a promise is a failure under any definition of the word. Barack Obama, in 2009, blatantly stated that the unemployment rate "would not exceed eight percent." Why is he celebrating his failure to keep a promise to the American people? Additionally, Obama hardly deserves to take credit for the recovery of the national economy. That was influenced by many factors. If anyone deserves credit, it's Ben Bernanke, who was called the 2009 Man of the Year by Time magazine, one of the most liberal publications in the United States. Let's take a look back. A middle estimate of the jobs saved by the bill is 1.5 million. Even if this value is accurate, that means that an $862 Billion investment saved that 1.5 million jobs. that comes out to about $574,666 invested by the government per job saved. Does that sound like a sound choice to you?
ReplyDeleteThe stimulus package was necessary. In the article it said that issuing the stimulus package avoided the next Great Depression, and I believe that. But how can you say that it's not working, or that it's a waste of money because unemployment is still high and because a lot of jobs were lost? You always say, Ms Meachum, that unemployment numbers are the last ones to come back. It's been one year. 365 days that the stimulus package has been in effect, and it's estimated to have saved 2million jobs. The stimulus package wasn't issued to prevent the "severe recession" we had already fallen into, it was to lessen the blow and start us on a road out of it.
ReplyDeleteAs to when we should stop spending, I would say right up to when the numbers start going down for unemployment. If we stop spending too early, we're going to have a hard time finishing getting out of the recession.
I believe that there is a great digression about the stimulus package; but I think it was necessary. If the stimulus package was not put into place we would have had 2 million more jobs lost and our unemployment rate would have been even higher. If this were to happen there would be less spending from the economy and it would take longer to lower the unemployment rate. No one can really say if it is worth the money spent. The unemployment rate should be on a steady drop and then we should stop spending.
ReplyDeleteI think you have to stimulate the economy by putting more money back into it. If there is no money out there circulating, there is nothing to get it started again. The money should have gone back to the small business owners and stimulate the smaller economies first before bailing out the huge banks and stuff.
ReplyDelete1- This is the New York Times. (not much more needs to be said but I'll say it anyway)
ReplyDelete2- "With the passage of this bill, the United States of America will not see unemployment raise above 8%" -President Barack Hussein Obama. Unemployment is now at 9.7%. (working?)
3- Since the day the so called "Stimulus" bill was signed into law by President Barack Hussein Obama 3.4 million jobs have been lost in the united Sates of America. Additionally, 1 million people have stopped looking for jobs all together. (working?)
4- The bill projected that from the day it was signed into law to now it would have created 1, 917, 391 jobs. Actual job growth since that day till now is -3, 418, 000. Leaving President Barack Hussein Obama's current job deficit at -5.3 million. (working?)
http://www.rove.com/images/0000/0222/10.png
Well I think GDP, employment, GDP per capita, and employment all need to go down, and if there's anything else I forgot, include it as well. Additionally, employment needs to return to a more natural rate at around four percent, and the inflation and growth of inflation need to return to favorable rates. Ultimately, we need to stop spending when economic indicators make it abundantly clear that we are in an economic expansion so that for future, inevitable recessions, we will have money stored so that we can afford to spend. My head just short of explodes, though, when I'm asked what i think America could do about it's multi-trillion dollar deficit. I just have no idea, which is why being an economist isn't exactly number 1 on my to-do list.
ReplyDeleteSo far, I will indecisively say that I think our money went to waste because, since the stimulus package was mainly aimed at aiding America's monetary system, it is very apparent that our banks are STILL failing, as you, Ms. Meachum, even say that (though I forgot the exact numerical figures you provided) more and more banks and going under each day. In fact, I wouldn't be surprised if I saw the Stimulus Package on www.failblog.org soon enough.
Well, everything about the stimulus bill makes perfect sense and should improve the economy. I believe it was worth the money spent. The only way out is to spend--it's all economics. Spending helps. It's hard now, but it will pay off in the long run. Signals are changes in GDP and unemployment rates.
ReplyDeleteGarrett, I think you mean GDP & GPR/Capita need to go up while unemployment needs to go down... otherwise, we'd still be in the same rut, no matter how much unemployment decreases. Just sayin'.
ReplyDeleteI have yet to see anyone other than Steven post any actual facts. Citing the article we all just read doesn't really count as a resource for hard numbers, either.
ReplyDelete