The Stimulus worked
November 30, 2009 Leave a comment
I meant to post this before Thanksgiving, but it's still worth doing. The NY Times ran a nice story summing up opinions from private-sector economists (i.e., people paid to be accurate about their opinions rather than just make an ideological point) who largely agree that the stimulus has been quite effective and that our economic situation would be a good bit worse had we not passed this. Most estimate that unemployment would have been about 2% higher (that's huge!) and that GDP growth would've been 2% lower. Those figures are nothing to sneeze at. The problem is that Obama gets no credit for averting economic catastrophe when the economy is still in such poor shape. "It could've been a lot worse" just isn't much of a rallying cry. It is, however, an important thing to know. And it is, of course, worth noting that the modern Republican party has basically taken it as dogma that the stimulus was a bad thing. Wouldn't want evidence to get in the way of ideology.