A slick take on the predictions on the economy by the Obama administration offers proof that the country would have been better off without the costly $850 billion stimulus package.
With the news out this morning that the unemployment rate has risen to 9.1%, it’s as good a time as any to revisit the impact of the White House’s stimulus package. According to the predictions the administration’s own economic advisers made at the time, we may have been better off doing nothing.
In January 2009, the office of the president-elect released a study to promote the then-proposed stimulus bill. Titled “The Job Impact of the American Recovery and Reinvestment Plan,” it was written by economists Christina Romer and Jared Bernstein.
In it, the White House argued that with the stimulus plan, unemployment would peak around 8% by the end of 2009 and would be well below 7% today. If, on the other hand, Congress did not pass the stimulus package, it warned that unemployment would rise to about 9% in 2010 and be around 8% today. The then-Democratic-majority Congress passed the stimulus by the end of the month.
And the conclusion?
Nevertheless, the bottom line is this: Not only did the stimulus not provide the boost that was promised, but the $819 billion hole it blew in the budget only exacerbated economic uncertainty in a nation already worried about its deficit. Under the White House’s own predictions, had Congress done nothing, the economy would be better off.
The policies of this administration are consistent. If it will fail, let’s do it.
DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education.
DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed.
Except for liberals being foolish.