I’ll use small words: the stimulus worked

One of the most frustrating things of late is that in many quarters it is considered a liability to have supported the stimulus and is taken as a matter of faith that it didn’t work at all. Of course, the evidence to the contrary is quite overwhelming.  Via Yglesias:

Annie Lowrey observes that “that the stimulus — the $787 billion American Reinvestment and Recovery Act — had less impact and proved less important than the government’s monetary policy and financial-market stabilization measures, like the Fed buy-up of mortgage-backed securities.” And this isn’t because ARRA didn’t work: “the fiscal stimulus alone appear very substantial, raising 2010 real GDP by about 2%, holding the unemployment rate about 1.5 percentage points lower, and adding almost 2.7 million jobs to U.S. payrolls.” [emphasis mine]

I still the Democrats should go on the offensive on this.

About Steve Greene
Professor of Political Science at NC State http://faculty.chass.ncsu.edu/shgreene

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