#30469 - 07/28/10 07:41 AM
Stimulus averted second depression
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Carpal Tunnel
Registered: 07/08/08
Posts: 3274
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From the NYTWASHINGTON — Like a mantra, officials from both the Bush and Obama administrations have trumpeted how the government’s sweeping interventions to prop up the economy since 2008 helped avert a second Depression.
Now, two leading economists wielding complex quantitative models say that assertion can be empirically proved.
In a new paper, the economists argue that without the Wall Street bailout, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama administration’s fiscal stimulus program, the nation’s gross domestic product would be about 6.5 percent lower this year.
In addition, there would be about 8.5 million fewer jobs, on top of the more than 8 million already lost; and the economy would be experiencing deflation, instead of low inflation.
The paper, by Alan S. Blinder, a Princeton professor and former vice chairman of the Fed, and Mark Zandi, chief economist at Moody’s Analytics, represents a first stab at comprehensively estimating the effects of the economic policy responses of the last few years.
“While the effectiveness of any individual element certainly can be debated, there is little doubt that in total, the policy response was highly effective,” they write.
Mr. Blinder and Mr. Zandi emphasize the sheer size of the fallout from the financial crisis. They estimate the total direct cost of the recession at $1.6 trillion, and the total budgetary cost, after adding in nearly $750 billion in lost revenue from the weaker economy, at $2.35 trillion, or about 16 percent of G.D.P.
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It is by having hands that man is the most intelligent of animals - Anaxagoras
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#30470 - 07/28/10 08:56 AM
Re: Stimulus averted second depression
[Re: Lumberjack]
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Carpal Tunnel
Registered: 04/08/09
Posts: 3232
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"The true engine of economic growth will always be companies like Solyndra"...B.O.
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#30471 - 07/28/10 09:06 AM
Re: Stimulus averted second depression
[Re: ikayak]
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Carpal Tunnel
Registered: 07/08/08
Posts: 3511
Loc: Heaven. Yeah, cool.
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#30472 - 07/28/10 09:09 AM
Re: Stimulus averted second depression
[Re: Beavis H. Christ]
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Carpal Tunnel
Registered: 04/08/09
Posts: 3232
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lol! I see you are in your usual fine form this morning!
_________________________
"The true engine of economic growth will always be companies like Solyndra"...B.O.
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#30477 - 07/28/10 10:56 AM
Re: Stimulus averted second depression
[Re: ikayak]
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member
Registered: 09/28/09
Posts: 163
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"The Reuters Ipsos poll of 23,000 adults in 22 countries showed that more than 40 percent of people from India and China believe that aliens walk among us disguised as humans . . ." http://www.reuters.com/article/idUSTRE6374B220100408All polls must be right and given the same status as research.
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#30480 - 07/28/10 12:08 PM
Re: Stimulus averted second depression
[Re: MonteMark]
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Carpal Tunnel
Registered: 04/08/09
Posts: 3232
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"The Reuters Ipsos poll of 23,000 adults in 22 countries showed that more than 40 percent of people from India and China believe that aliens walk among us disguised as humans . . ." http://www.reuters.com/article/idUSTRE6374B220100408All polls must be right and given the same status as research. Did you even read the full article link that LJ posted? Excerpt: But the new analysis might not be of immediate solace to officials in the Obama administration, who have been trying to promote the “summer of recovery” at events across the nation in the face of polls indicating persistent doubts about the impact of the $787 billion stimulus program. I posted an example of the polls cited in the linked article. On topic.
_________________________
"The true engine of economic growth will always be companies like Solyndra"...B.O.
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#30482 - 07/28/10 12:19 PM
Re: Stimulus averted second depression
[Re: ikayak]
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Carpal Tunnel
Registered: 07/08/08
Posts: 3511
Loc: Heaven. Yeah, cool.
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I posted an example of the polls cited in the linked article.
On topic.
The stimulus is working and avoided a second Great Depression. Iky still thinks it was wrong and Obama is doing a bad job. In other news, water is wet, the sky is up, and Iky hates black people.
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#30509 - 07/29/10 04:51 AM
Re: Stimulus averted second depression
[Re: Lumberjack]
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Pooh-Bah
Registered: 07/09/08
Posts: 2289
Loc: SMA Mexico
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Your subject title should be "Stimulus temporarily averted second depression"
This thing is far from being done.
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Obama's victory came from those who wanted him to change Washington, not America.
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