OK, Another "What's Wrong With This Article"...
Bear in mind, the US GDP is 14.3 TRILLION as of 2008. The spendulus bill was for $787 BILLION, of which ONLY about 100 Billion has been spent. ONLY about 12 cents of every dollar actually went to true stimulus related activity, so we are talking about 12 billion dollars.
So is it even possible that 12 billion dollars over 6 months could have ANY impact on a 14 TRILLION dollar economy?
Well, according to these Obama-friendly economists, the answer is a resounding "Yes!"
Hardly. The World-wide recession actually ended on it's own (and the numbers will bear that out by the end of this year...Q3 '09 ended the recession, and it ACTUALLY ended on it's own, as most economic downturns do). France and Germany are in a full recovery. Did Obama's spendulus bill help them? What's more, unemployment numbers were UP for July higher than expected, the same unemployment numbers that Obama was supposed to be curbing with hi spending bill. Retail sales were down as well.
This is shotty journalism at best, irresponsible shilling for a sitting President at worst, and misleading as Hell either way...
Economy starting to recover, survey says Signs suggest Obama's stimulus is taking effect
By Shobhana Chandra
and Kristy Scheuble
Published on Thursday, Aug 13, 2009
Recovery from the worst recession since the 1930s has begun as President Barack Obama's fiscal stimulus — derided as insufficient and budget-busting months ago — takes effect, a survey of economists indicated.
The economy will expand 2 percent or more in four straight quarters through June, the first such streak in more than four years, according to the median of 53 forecasts in the monthly Bloomberg News survey. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July, the biggest such boost in surveys dating from May 2003.
''We've averted the worst, and there are clear signs the
stimulus is working,'' said Kenneth Goldstein, an economist at the Conference Board in New York.
The new projections, following better-than-anticipated reports on manufacturing, employment and home construction, echo gains in investor confidence that have propelled the Standard & Poor's 500 Stock Index to its high for the year.
A rebound may help cushion declines in Obama's approval ratings, political analysts said.
''The fact that people for the first time in over a year are starting to look at some glimmers of hope plays to the prospect of some strength in the stimulus,'' said Susan Molinari, a Republican strategist in Washington who advised Rudy Giuliani during his presidential nomination campaign in 2008.
Confidence in the world economy surged to a 22-month high in August on signs the worst global recession since World War II is coming to an end, a Bloomberg survey of users on six continents showed.
The Bloomberg Professional Global Confidence Index jumped to 58.12 this month from 39.13 in July. A measure of U.S. participants' confidence in the world's largest economy rose to 47.3 from 29.5, the survey showed.
There was just a one-in-five chance of a ''double-dip'' recession at some point in the next 12 months, where the economy shrinks again after starting to grow, according to the median of 33 economists answering a special survey question.
The anticipated expansion in the coming year won't be enough to prevent the unemployment rate from reaching 10 percent for the first time since 1983, the survey also showed.
That will force the Federal Reserve to forego raising its benchmark interest rate until the third quarter of 2010, according to the median projection.
Obama's $787 billion economic recovery effort, spanning tax cuts, infrastructure spending and a goal to create or save 3.5 million jobs, was enacted about six months ago.
Republican lawmakers, nearly all of whom voted against the package, have pilloried the plan as a waste of money.
''Trillions more in Washington spending will not end a recession, it only puts future generations under a mountain of unsustainable debt,'' House Minority Leader John Boehner, R-West Chester, said last week.
The nonpartisan Congressional Budget Office estimated last week that the stimulus has pumped $125 billion into the economy so far.
A federal program to replace older vehicles with more fuel- efficient ones helped boost sales of cars and light trucks last month to the highest level since September, according to industry figures.
Automakers, operating with lean inventories, will resume output to meet the jump in demand.
'' 'Cash for Clunkers' was the icing on the cake,'' said David Greenlaw, chief fixed-income economist at Morgan Stanley in New York. ''It's well-timed stimulus syncing with cyclical forces leading to a ramping up of production.''
Company heads seeing an improvement include David Weidman, chief executive officer of Dallas-based chemical maker Celanese Corp. ''We exited the quarter with increasing optimism,'' and there are ''clear signs of economic recovery,'' Weidman said in an interview in July.
''The stimulus was really a long-term political and economic play by the administration, and now they're starting to see the results they wanted,'' said Bill Buck, a Democratic strategist who worked on the presidential campaigns of former Vice President Al Gore and retired General Wesley Clark. ''The administration would be wise to use this to build their credibility with the public'' on other issues.
The president's approval rating is falling on concern over rising joblessness and the growing budget deficit, a Quinnipiac University poll showed last week.
Half of the registered voters surveyed from July 27 to Aug. 3 by Quinnipiac said they approve of the job Obama is doing, compared with 42 percent who disapprove. That's down from 57 percent approval and 33 percent disapproval in a late June poll.
Americans are hurting as employers continue to cut jobs, albeit at a slower pace.
The unemployment rate will average 9.8 percent in 2010, according to the Bloomberg survey taken from Aug. 5 to Aug. 11.
''The labor market is going to be the key,'' said Michael Feroli, an economist at JPMorgan Chase & Co. in New York. ''The risk isn't that it gets much worse, but that it doesn't improve quickly enough. It'd be nice if the consumer found his legs.''
Consumer spending, which accounts for about 70 percent of the economy, will rise an average 1.5 percent from July to December, up from prior estimates, the survey showed.
''What's happening now is a leveling off, not a strong increase in growth, and that owes a little to the stimulus package,'' said Robert Solow, a Nobel laureate and professor emeritus at the Massachusetts Institute of Technology in Cambridge, Massachusetts.
''Seeing the rest of it filter through to the economy in the second half of the year will be extremely helpful.''
Re: OK, Another "What's Wrong With This Article"...
Wait a second... I only got to the "economy will expand by 2 percent"
Under Bush, that was considered to be a horrible economy. So what are we being told now... THat the economy under Bush for at least 6-7 years was good. . . or that the economy under Obama will be bad for at least another year or more....
Consistency people. Please.
Re: OK, Another "What's Wrong With This Article"...
I can't get over the initial implication that the recession didn't just run it's course like every OTHER recession in history, that somehow this one was different, that THIS spendulus bill actually worked, unlike any OTHER stimulus anywhere in the World.
France and Germany pulling out are the smoking gun of that truth...
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