McClatchy:
Should the federal government be doing more to help the economy regain its footing? That's the question du jour following a dismal June employment report last week and Vice President Joe Biden's Sunday talk-show confession that the administration "misread" the economy.
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Consider this. Charles Grassley wrote the CBO for an updated report on the stimulus hoping that Grassley can have something to jump on. To the dismay of Grassley, the CBO report (March 02, 2009) estimates that the stimulus "implies an increase in GDP relative to the agency"s baseline forecast of between 1.4 percent and 3.8 percent by the fourth quarter of 2009, between 1.1 percent and 3.4 percent by the fourth quarter of 2010, between 0.4 percent and 1.2 percent by the fourth quarter of 2011, and declining amounts in later years... " In short, the CBO projects the net effects of the stimulus as better than the baseline (that is, without the stimulus). Furthermore, in terms of the net effects on employment, the CBO estimates employment will increase "by 0.9 million to 2.3 million by the fourth quarter of 2009, by 1.2 million to 3.6 million by the fourth quarter of 2010, by 0.6 million to 1.8 million by the fourth quarter of 2011, and by declining numbers in later years. The effect on employment is never estimated to be negative, despite lower GDP in later years, because CBO expects that the U.S. labor market will be at nearly full employment in the long run... " Again, to his dismay, Grassley found no ammunition to support his argument that the stimulus does not work. Otherwise, Grassley would be waving the CBO report at Obama.
Have you noticed the up tick in rhetoric from the Republicans across the nation that the stimulus has "failed"? That is the sound of fear, rank political fear. Now that President Obama has played hardball with Arizona Republican Governor Brewer and Senator Kyle on whether or not they will forfeit the money, Republicans have run out of options to combat the resurgence of the U.S. economy in the coming months and are being defeated in their plan to see President fail. Of course, he won’t; they will. The global recession will end and the U.S. will lead the world to one of the most vigorous booms since the 1950s. Are we ready? Put on your rally caps and wave the flag: we’re back!
I've been saying this from the beginning. The major issue that we are right now, as we speak, letting slip through our fingers is the issue that affects all others including the economy. That issue, of course, is healthcare reform. You'd be surprised at how much a boon to the economy healthy workers can be. Especially if they have peace of mind and are not worried they will lose everything if they or a family member becomes ill.
Tax the rich and redistribute the wealth. NOW
The answer is no. He was led astray by the advice of ex Goldman Sachs weasels.
all the stimulus in the world is not going to help this depression.
only relentless prosecution and clawback from the wall street banksters can
lead the path forward.
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First Posted: 07- 7-09 06:36 PM | Updated: 07- 7-09 06:43 PM