The Stimulus is Working
From the Wall Street Journal:
Many forecasters say stimulus spending is adding two to three percentage points to economic growth in the second and third quarters, when measured at an annual rate. The impact in the second quarter, calculated by analyzing how the extra funds flowing into the economy boost consumption, investment and spending, helped slow the rate of decline and will lay the groundwork for positive growth in the third quarter -- something that seemed almost implausible just a few months ago. Some economists say the 1% contraction in the second quarter would have been far worse, possibly as much as 3.2%, if not for the stimulus.
For the third quarter, economists at Goldman Sachs & Co. predict the U.S. economy will grow by 3.3%. "Without that extra stimulus, we would be somewhere around zero," said Jan Hatzius, chief U.S. economist for Goldman.
There's a legitimate argument over how effective it's been, or whether it's been effective enough given the expense. But it has been effective. Calls to repeal it are, make no mistake, calls to boost the unemployment rate and slow economic growth. That's not a terrible strategy for papers that are given out for free on street corners -- a poorer nation arguably gives them a comparative advantage over papers that cost money or require internet connections -- but it's not very good for the broader economy. The question, rather, is whether we need a second (or, depending on how you count, third) stimulus.
Posted by: srw3 | September 2, 2009 3:44 PM | Report abuse
Posted by: Claudius2 | September 2, 2009 4:11 PM | Report abuse
Posted by: slantedview | September 2, 2009 4:13 PM | Report abuse
Posted by: obrier2 | September 2, 2009 4:16 PM | Report abuse
Posted by: impikk | September 2, 2009 4:27 PM | Report abuse
Posted by: scott1959 | September 2, 2009 5:10 PM | Report abuse
Posted by: howard16 | September 2, 2009 5:17 PM | Report abuse
Posted by: srw3 | September 2, 2009 5:49 PM | Report abuse
Posted by: scott1959 | September 2, 2009 8:35 PM | Report abuse
The comments to this entry are closed.