The Stimulus Was An Utter Disaster

College of Political Knowledge

Federal Deficit Series

We hear these words daily coming out of the mouths of Repubs…..Obama’s plan is a bust…the economy is worse because of his policies….on and on…..they prattle  and they prattle and we sink deeper into the hole that the Washington crowd has dug, all of them not one party over another….all of them!

But was the American Recovery& Reinvestment Act (the stimulus) really a failure?  Not really….why?  CBO (or maybe it was the GAO)…..anyway their report on the stim plan shows that 1.3 to 3.0 million jobs were either created or saved and that it created $2 billion of economic activity and  that it has added about 2% of the country’s GDP.  NONE ot that sounds like a failure….yes, it could have been better but at least it did stop some of the slide to the economic abyss.

The failure that one may be thinking of is that of the Bush presidency’s bank bailouts…..these institutions were bailed out so that banks would start lending the money and re-start our economic engine….guess what?  It did NOTHING to improve the economy….it did however, save a bunch of gambling banks from disaster for the games they were playing with the people’s money…..

Maybe we should stop calling everything a failure and just stick to the facts…….or at least fix the designation to the thing that was the real failure and stop playing political games for electoral advantage…..

10 thoughts on “The Stimulus Was An Utter Disaster

  1. Yes, although I don’t generally believe in government stimulus unless it is very carefully directed.

    However, I do agree with most of what you say – NO ONE should be too big to fail since it’s exactly like blackmail and we all know that a blackmailer is never satisfied with one payout however big.

    1. The CBO is only as good as we want it to be…..the Repubs say it is lying until it supports its issues and the Dems do the same thing…..if nothing had been done…the economy would be in shambles and Obama would be an ass…just like now….NO matter what was done or what it achieved…it was WRONG!

  2. I’m still not seeing how the stimulus stimulated anything. I’ll bet it has served to stagnate more than create. Unemployment is still near 10% and the government wants to boast about how it has “created” or “saved” jobs? How much of the government behemoth’s bumbling (aka Obamacare, the new financial legislation, etc.) served to destroy jobs or prevent jobs from ever being created thanks to uncertainty and wasteful spending?

      1. The bailout? I think it was immoral, actually. It rewarded bad behavior.

        It failed to prevent banks, large and small, from collapsing. It failed to incentivize lending to small businesses and individuals. It failed to prevent people’s massive losses in the stock market. It failed to prevent people from foreclosing on their homes (did you see the latest news about how the government’s mortgage program was an utter bust?).

      2. And the programs have not gone into service, but businesses are not run based on just the here and now. They are also run with an eye on the future. Businesses aren’t hiring because they have no idea how the latest monstrosities coming out of Congress are going to affect them. Better to get by with as little employees as possible.

      3. What about the small business bill in Congress? Since the Bush tax cuts are still in force…for now…why have they not generated jobs, like the Repubs say it will it they are extended?

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