More Economic Good News- Economists agree: Stimulus created nearly 3 million jobs

Discussion in 'Economy' started by rightwinger, Aug 30, 2010.

  1. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Economists agree: Stimulus created nearly 3 million jobs - USATODAY.com

    A recent study by two prominent economists generally agrees, crediting the pump-priming with averting "what could have been called Great Depression 2.0."

    Eighteen months later, the consensus among economists is that the stimulus worked in staving off a rerun of the 1930s. But the spending's impact was dwarfed by other crisis-fighting tools deployed by the Bush and Obama administrations, including costly efforts to stabilize crippled banks and the Fed's unconventional monetary policy.

    "I think it was important for confidence. ... But fiscal stimulus was the least important of the three planks of the government's strategy," said Harvard University's Kenneth Rogoff, former chief economist of the International Monetary Fund.
     
  2. DiamondDave
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    DiamondDave Army Vet

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    2 whole economists, eh?? :rolleyes:

    Funny that the stats and reality don't agree with them
     
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  3. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Their conclusion: The fiscal stimulus created 2.7 million jobs and added $460 billion to gross domestic product. Unemployment would be 11% today if the stimulus hadn't been passed and 16.5% if neither the fiscal stimulus nor the banks' rescue had been enacted, according to Zandi and Blinder. "It's pretty hard to deny that it had a measurable impact," Zandi said.
     
  4. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Absolute poppycock.

    This is all based on a what if model that assumes a high multiplier on government spending which is not accurate. Any dollar the government spends is a dollar taken away from the private sector. An honest analysis would deduct from that 3M the amount of jobs that weren't created because of the removal of money from the private sector.

    Fortunately, we have actual unemployment stats and smart people who know how to perform real analysis to provide the real picture:

    [​IMG]
     
  5. DiamondDave
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    DiamondDave Army Vet

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    Yeah... their theory.. but again reality does not show anything of the sort...

    What are the odds the press would write a story about 2 Obama or DEM shills??

    Give it a rest, winger
     
  6. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    The economic news isn't so good here. My allowance got cut by 20%!:eusa_eh:
     
  7. VaYank5150
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    VaYank5150 Gold Member

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    Please show me that formula so I can do the math, too....
     
  8. 8537
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    8537 Senior Member

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    What leads you to believe Rogoff's work is based on a "high" multiplier for government spending?

    Current government borrowing is coming from foreign nations and from people so risk averse that they'll accept a near-negative interest rate. They allocated that money to the most productive place they could find, and that place is paying almost nothing.
     
  9. fyrenza
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    fyrenza Ariel Looney Supporting Member

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    Where???

    'Cuz OVERSEAS doesn't exactly count...
     
  10. Jarhead
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    Jarhead Gold Member

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    500 billion created 3 Million jobs...at cost of 167,000 a job.
    Seeing as I assume each job created probably averaged less than 50 per salary, I m nt overly impressed.
    The rest of that giubbersih such as "where unemployment would be without it" and "without it we would have spiraled into another great depression"....that is all speculation and not based on anything.
     
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