Feb 17, 2014

The Stimulus. What has it done?

Who wanted it? Why did they even try this? 

Krugman wanted a lot more. A lot. What we also forget is that this is not just 680 billion. Over the next few years, with interest, this upwards of at least a trillion, in overall spending. What is also left out of Obama's (and Reich, and Krugman, etc.) rhetoric is the mere fact that much of this money was hardly spent after it was signed. It has taken several years for this stimulus money to actually become circulated.

Keynesian logic: in case of emergency, break the glass. Parable of the broken window. ie: economic fallacy, so I'm told.
It will never go away. I remember trying to explain this years ago to people just to be shut it....

With that said, I would not call it "obamanomics" just like I wouldn't call something "reaganomics" or "bushanomics" or "trickle-down" when there are no such things.

Charlie, I thank you for your dedication to dispell such myths. You are certainly right about Krugman....after the recession was in full swing, even a 2 years later, Krugman would still defend it. Mentioning things like "well, it prevented a huge disaster from actually occuring" even though he and Obama called it the "Great Recession." What made it so great? Just like the great depression, Hoover set the stage for FDR to make it worse.

Reagan inherited a potentially worse recession from the Carter administration and did the polar opposite Obama did. Lower taxes that increased economic growth, which later....(economic policy can take a while to kick in sometimes) help the economic boom in the 1990's....
Although Reagan still spent money but let's not forget who had the majority in congress during most of his presidency.....:ahem: take a guess?

I'll answer for you. Republicans had a slight majority during 6 of his 8 years in the senate. It was less than a 60% majority which made override nigh on impossible....but
the House of Reps has Democratic majority that uh....you really couldn't argue with.

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