Economics / Politics

Was the Obama stimulus large enough to be effective in turning the economy around? Obviously not. Was what we ended up with worth doing anyway? Absolutely. Would a McCain / Palin administration have done better? Brutha, please

“The biggest secret you’ll never hear from the Republicans (or, sadly, the Democrats for some reason) is that the deficit has been slowly shrinking as modest growth has boosted revenues — a reality that proves the point that stimulus, leading to increased economic prosperity, leads to more tax revenue and, therefore, deficit reduction, even when spending remains higher than normal. Fact: President Obama and the Democrats reduced the deficit by $120 billion in their first fiscal year, down from the last Bush fiscal year. By the end of the president’s first term, the deficit, even without the debt ceiling deal, is projected to be $300 billion less than Bush’s final deficit. The math doesn’t lie. But the Republicans do — about the president’s deficit and about their own spending record.”

“Irrespective of the Republicans brazenly and hypocritically accepting stimulus money and federal earmarks, the stimulus absolutely worked in relation to its dollar value and the size of recession itself, which turned out to be far deeper than was known at the time. As soon as the stimulus was signed — almost to the day — the stock market began to steadily rise, GDP turned around and, within a few quarters, was growing again and job losses began to be erased, with fewer each month. Had the stimulus been larger, the positive effects would have obviously reflected that. But once the money began to run out and the demands for austerity began to be taken seriously, growth and job creation slowed. And this week, following the debt ceiling deal which will cut trillions from the budget, the markets tanked and a second recession has the nation on tenterhooks. The Republican sabotage plan in motion. (It’s also worth mentioning here that the other “evil” source of Democratic “spending”, the Affordable Care Act, actually reduces the deficit, according to the Congressional Budget Office. Yet the Republicans were screechingly opposed to it, despite the deficit reduction and its close resemblance to healthcare plans proposed by Bob Dole and passed by Mitt Romney.)”


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