New Consensus Sees Stimulus Package as Worthy Step

[TomCADem]

Source: NY Times

WASHINGTON — Now that unemployment has topped 10 percent, some liberal-leaning economists see confirmation of their warnings that the $787 billion stimulus package President Obama signed into law last February was way too small. The economy needs a second big infusion, they say.

No, some conservative-leaning economists counter, we were right: The package has been wasteful, ineffectual and even harmful to the extent that it adds to the nation’s debt and crowds out private-sector borrowing.

These long-running arguments have flared now that the White House and Congressional leaders are talking about a new “jobs bill.” But with roughly a quarter of the stimulus money out the door after nine months, the accumulation of hard data and real-life experience has allowed more dispassionate analysts to reach a consensus that the stimulus package, messy as it is, is working.

The legislation, a variety of economists say, is helping an economy in free fall a year ago to grow again and shed fewer jobs than it otherwise would. Mr. Obama’s promise to “save or create” about 3.5 million jobs by the end of 2010 is roughly on track, though far more jobs are being saved than created, especially among states and cities using their money to avoid cutting teachers, police officers and other workers.


Read more: http://www.nytimes.com/2009/11/21/business/economy/21stimulus.html?hp=&adxnnl=1&adxnnlx=1258794168-pmCbV6Pur3YPWVcKIUuR8g

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The big fact being ignored by the media is that at the time the stimulus was being debated, most Republicans such as Bob Corker and Karl Rove were arguing that the economy was going to recover shortly anyways, thus no stimulus was needed. Indeed, do you remember Republicans saying that the dire predictions on the economy were just being used to promote President Obama's radical left agenda?

Yet, we now find out that President Obama's dire description of the economy was actually not dire enough, and Republicans are now being given a free pass on the fact that they were minimizing the impact of the recession during the stimulus debate.

[LynnTheDem]

1. Shall we point out that wee bit of factual info? The bits Fox "News" will miss...

"the stimulus package, messy as it is, is working."

[AllentownJake]

2. That is what happens when you adopt a moderate solution to a problem

You end up with moderate results. When you end up with moderate results your opponents attack you on the fact the results were moderate.

If you are going to do something, think big and go for it, because if the results are moderate, you are going to get the same treatment as if you did nothing.

[fasttense]

3. Good point. It needs to be repeated - moderate solutions lead to moderate results.

I noticed congress and the presidents weren't so moderate about bailing out the banks/Wall Street/insurance corporations. Seems most government are moderate when they go to help the majority middle class and lavish when they go to help the uber wealthy.

[AllentownJake]

4. They were moderate there too

Because they didn't do step 2 which is regulation. The wealthy class hates that word but it is what they need. What most people don't understand is the wealthy class are just as stupid as everyone else.

There is a shit load of money parked in safe investments providing a low return right now because people don't have faith in the financial system right now. The problem is, it is always the other guy that is causing the problems not me so if there was only a way you could just regulate them and leave me alone.

FDR was brilliant in he was able to put the assholes in their place...and they ended up making money.

[laughingliberal]

6. Exactly! We see the results of watering down efforts to appease the moderates...

and to get those 3 Republican votes so we could call the stimulus 'bipartisan.' The Republicans and Blue Dogs (but I repeat myself) forced the stimulus down from the $1 trillion needed to $787 billion and diverted money for spending into tax cuts. This was a plan guaranteed to show weak results and now they crow about the weak results. When are the Democrats going to show up?

[FarLeftFist]

5. Isn't there still $600 billion un-spent?

[AllentownJake]

7. I'm sure any unspent money

is in there calculations on effect to GDP and it includes what they saw the economic benefit of the first numbers.

These guys aren't stupid.

[Hubert Flottz]

8. We need another FDR instead of a GOP lite...

When the GOP broke America in the 1920s and 30s it took an FDR to fix it...fixing the things that were broken in America put people back to work. Our highways, bridges, railways and waterways need repaired...Americans need jobs not more frivolous tax cuts. The five billion a week being spent in Iraq and Afghanistan would be better spent putting Americans back to work. We need to bail out our poor and hungry who can't find a job.

BLAME...deregulation, tax cuts for the wealthy, elective wars, exported jobs, no bid contracts, the corporate takeover of the federal and state government, voter stupidity and lack of attention to the things that have been going on in Washington by the American people and a rabid toxic mixture of religion and government in which bullshit outweighs and out screams common sense.