Sunday, October 25, 2009

Stimulus’ big boost to the economy? It already happened.

So much for Keynesian economics pulling us out of this economic distress we are in of high unemployment and ever increasing government debt.

White House economist Christina Romer said Thursday that the stimulus package's impact on the economy will weaken from here on.

“Most analysts predict that the fiscal stimulus will have its greatest impact on growth in the second and third quarters of 2009,” Christina Romer, who chairs the President’s Council of Economic Advisers, said in testimony prepared for Congress. “By mid-2010, fiscal stimulus will likely be contributing little to growth.”

This view is shared by many economists, as Ms. Romer noted. But her assessment comes at a difficult time for both policymakers and for Americans in general.

Despite the massive $787 billion price tag, polls show that many Americans are skeptical about whether the stimulus is accomplishing much. Since the passage of the American Recovery and Reinvestment Act (ARRA), the nation’s jobless rate has climbed higher than the White House and others had predicted.

Barry is out their claiming that without the stimulus plan we would have lost another million jobs. Biden claims that has succeeded beyond his wildest dreams. Summers states that it was a big success. There is no way they can prove these claims. They are just more claims and falsehoods that this administration continues to spew for public consumption. They are starting to lose all credibility. Even if they did save a million jobs it cost us billions of dollars for each one that was saved. All the money is going to union contractors and laborers not to the actual people who build companies and create jobs. You cannot save the day by rebuilding some roads and bridges.

The economy is going to show a slight improvement when the next GDP results are released but again like the momentary improvement in unemployment this to will be momentary because a lot of the improvement is built on programs like "cash for clunkers' and other short term fixes that do not create long term growth.

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