According to figures released by the non partisan CBO it worked. What worked you ask?
The Stimulus. Faced with depression level rates of economic contraction the Obama administration proposed and won passage of the $800 billion stimulus, which by the way was by the way far less then the stimulus proposed by Republican primary contender Mitt Romney. Chided at the time as a boondoggle by the right and not enough by the left it seems that the stimulus was just right. Where's the jobs? Well it did produce a level of the shovel ready jobs that Obama's administration forsaw as 42, 000 miles of American highways were upgraded and/or built. 110,000 miles of new broadband infrastructure was built. GDP was increased 2-2.5 % from negative growth to a small but positive growth rate of about 1%. This GDP growth boom lasting well into 2011. Temporary tax cuts were provided to 160 million American workers, and the use of online medical recording doubled in private office practices and quintrupled at hospitals. It also jumpstarted the development of a fully electric car , solar power and the use of energy saving LED lighting. So was it the silver bullet that returned us to prosperity? No. But it did save America the pain of a double dip recession or even worse a depression. On the flip side Europe chose the opposite direction, austerity, and today it remains mired in all the problems that were created by the recession and an unemployment rate that remains double that of the U.S. The biggest hindrance to growth in the U.S. lately according to the CBO, the sequester.
An interesting analysis as there is no report on QE, Operation spin and the Feds activity in relationship to the economy which occurred at the same time.
ReplyDeleteWithout that, this is an interesting incomplete analysis at best. A puff piece.
But it must give you a warm fuzzy thinking something obama did was right.
Of course we must add in all the worthless goodies that the government bought, hired and no doubt gave away to the tune of 1Trillion dollar deficits for the last 5 years..... ... Hum... I wonder if they counted all of the jobs created in china to supply labor for all of those alternative energy upstarts that eventually went bust?
DeleteSorry for the interruption.... I was just thinking out loud.
Government is wonderful, they can spend whatever they like without consequence. At least for now.
DeleteCash for trash, all the jobs in foreign countries and profits for Toyota and Honda. The interesting thing is Japan did an auto replacement program and limited it to Japanese produced auto's only. The media pretended it never happened.
profits for Toyota because conservatives just gotta have a Camry.
DeleteLOL. Good one, father in law the ultra liberal has owned 3 Camry's. Personally wouldn't own one.
DeleteProfits for publicly-traded Toyota go to the shareholders no matter what country they live in.
Delete@rick
lou is and has been one of the biggest proponents of buying American both here and on MW.
TM, traded in the USA pays no dividend.
DeleteTOYOF pays no dividend
TYIDF Pays no dividend.
In any case is there any other way to bring jobs back to the US other than supply and demand? Unless you have a better idea.
Forgot this part:
ReplyDeleteBut the scorekeepers had always warned that borrowing all of that money would eventually catch up with the economy and, over the long run, leave it slightly worse-off than if no stimulus had ever passed, and that is about to come true.
I believe except for countries like Greece that had absolutely no choice in the matter, the UK enacted the stiffest austerity measures in Europe.... The started the downturn in 2008 with a gdp of -5.2% and ended 2013 to the positive with 1.9%. Interestingly enough, most countries in Europe that proposed austerity haven't, at least to the middle of last year, implemented any of their proposals....
ReplyDeletehttp://www.ncpa.org/sub/dpd/index.php?Article_ID=23378
Back in 2007, median household income was $55,438. That's declined to $51,404 in February 2013. Those numbers are pretax and adjusted for inflation and seasonal factors.
ReplyDeleteand your point is? Real earnings for middle class workers has been declining since the 80's. You got the numbers pre 2007 or does it only matter now?
DeleteAnd what can you do about today with numbers from 2000, 1990.
DeleteThe problem is today.
The problem is wages are going down, why is that? To many people in the work force?
Untrue Rick,
DeleteU.S. Household Incomes: A 45-Year Perspective
A .45% real growth rate for the middle quintile.
http://www.advisorperspectives.com/dshort/updates/Household-Income-Distribution.php
ha ha .45 % in 45 years. That's an average of .01% per year you know that don't you. So if I made 100,000 dollars 2014 I can now expect to make 100,001 next year. You know how laughable that is? How about those at the top WM. How much has their income increased in that same 45 years. Let's see if I can cut and paste some charts from your article.
DeleteThe charts clearly show that Americans realized some financial gains throughout the nineties but after 1999 the peak year for the American worker it has been a long downhill slog.
Nope won't let me paste them in a comment box.
DeleteThe numbers are inflation adjusted Rick. The .45% is yearly on top of inflation.
DeleteThe fact remains that the middle quintile made progress until the Obama administration.