Stimulus Aims Two-Phase Jolt at Fading U.S. Economy

Discussion in 'Economy' started by Life_Long_Dem!, Feb 13, 2009.

  1. Life_Long_Dem!
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    Life_Long_Dem! Member

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    Feb. 13 (Bloomberg) -- The stimulus plan emerging from Congress may jolt the U.S. economy in successive waves: relief to cash-strapped consumers, businesses and states, then a job- creating lift from spending on roads, utilities and public transit.

    While the package will take time to have an impact, and unemployment is likely to keep rising for months, it will start returning the U.S. toward growth by the end of the year, economists said.

    “Economic activity begins to tick up in third quarter of 2009, but the biggest effect of the stimulus bill is in 2010,” said Yale University economist Ray Fair, who has modeled on his Web site the effects of the legislation Congress is negotiating this week.

    Stimulus Aims Two-Phase Jolt at Fading U.S. Economy - Yahoo! News full article here
     
  2. dilloduck
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    dilloduck Diamond Member

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    Wow-- they really stepped out on a limb with this analyisis. How can one tell if the spending spree is helping out the economy or if it's trying to recover on it's own in spite of all the borrowing ?
     
  3. editec
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    editec Mr. Forgot-it-All

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    EXCELLENT QUESTION, Dill.

    The answer is easy though.

    If you believe in Keynesian economic theory, then the economy is repairing itself BECAUSE of the plan.

    If they you believe in the MISESIAN economic theory, then the economy is repairing itself DESPITE of the plan.

    And if the economy does not repair itself and you are Keynesian, then the plan was not Keynesian enough.

    And if the economy does not repair itself and your are Misesian, then the plan was too Keynesian.

    And the beauty of this is this...

    People will debate the hows and whys for years and years and years and NOBODY will EVER be able to prove who is right or wrong.

    WELCOME to the wonderful world of social science, where every target is constantly moving and nothing is EVER certain.
     
  4. dilloduck
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    dilloduck Diamond Member

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    The problem is that we'll have to hear to all the hyper-partisan BS as to who gets the credit and who gets the blame. I've really had it with the partisan bickering and those who would defend a pile of shit depending only if it had a D or and R in front of it. There's got to be a better way to run our country.
     
  5. wimpy77
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    wimpy77 Member

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    unvortunately until we have more than a two party system this is all we have.
     
  6. mash107
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    mash107 Active Member

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    You mean death by electrocution with Pelosi pulling the switch?
     

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