Author Topic: Obama's Stimulus: Five Years of Keynesian Fairy Dust  (Read 290 times)

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Offline Lando Lincoln

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Obama's Stimulus: Five Years of Keynesian Fairy Dust
« on: February 22, 2014, 09:19:37 AM »
Obama's Stimulus: Five Years of Keynesian Fairy Dust
By Daniel J. Mitchell
FEBRUARY 21, 2014

The country just “celebrated” the five-year anniversary of the so-called American Recovery and Reinvestment Act, more commonly referred to as the “stimulus.” The White House wants us to think the legislation was a success, publishing a report that claims the stimulus “saved or created about 6 million job-years” and “raised the level of GDP by between 2 and 3 percent from late 2009 through mid-2011.”

These seem to be preposterous claims. According to data from the Minneapolis Federal Reserve’s interactive website, the current recovery (red line) is the weakest expansion since World War II. And keep in mind that this anemic recovery started in the summer of 2009, right about the same time as the stimulus was beginning. So if the President’s plan was effective, it should be apparent in the growth numbers.

And the second chart shows that the labor market numbers are equally dismal. We’re stumbling through the second-worst recovery for job creation in the post-WWII era based on Minneapolis Fed data. The red line shows changes in total employment since the summer of 2009 and the results are lackluster at best. If this is a sign of a successful stimulus, it takes a vivid imagination to see what failure looks like.

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« Last Edit: February 22, 2014, 09:20:17 AM by Lando Lincoln »
For the progressive, there is very little to love about the United States. Washington, Jefferson, Madison? A bunch of rotten slaveholders, hypocrites, and cowards even when their hearts were in the right places. The Declaration of Independence? A manifesto for the propertied classes. The Constitution? An artifact of sexism and white supremacy. The sacrifices in the great wars of the 20th century? Feeding the poor and the disenfranchised into the meat-grinder of imperialism. The gifts of Carnegie, Rockefeller, Vanderbilt, Morgan, Astor? Blood money from self-aggrandizing robber barons. Nat Rev

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