#1 Study: Economy Shrank as Obama Stimulus Failed to Fuel Growth06-09-2010, 05:46 PM
By: Forrest Jones
Most economists believe the Great Recession ended in the summer of 2009 although a quick look at the numbers reveals President Barack Obama's stimulus measures, widely credited for getting the economy going again, really didn’t work.
In the third quarter of 2009, final gross domestic product growth came to 2.2 percent, according to government data, although when stimulus spending was subtracted from that figure and numbers show the economy contracted, the Big Picture reports.
The economy grew 5.6 percent during the fourth quarter of 2009 according to official figures although that figure drops to 2 percent when taken net of stimulus money, the Big Picture adds.
In fact, the numbers show the economy contracted again during the first quarter of 2010.
“Real growth means that economies are being more productive and real useful jobs are being created,” the Big Picture reports.
“Government stimulus is an attempt to manipulate growth statistics via inefficient and wasteful government spending. Stimulus does not advance standards of living.”
The Commerce Department says the U.S. economy officially grew 3 percent during the first quarter of 2010 when compared to the fourth quarter of last year, down from its original estimate of 3.2 percent, according to the AFP newswire.
Economists were expecting even better numbers.
“This is a fairly tepid recovery that is fighting a lot of headwinds,” Joel Naroff, of Naroff Economic Advisors, tells the AFP.
“It will be hard to grow rapidly when the economy has to overcome limited credit availability, a modest recovery in housing, high unemployment rates and, as a consequence, depressed consumer confidence ... and uncertainty in Europe.”
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06-09-2010, 06:26 PM
- Join Date
- May 2008
Most of the money doled out so far was given to state government to prevent layoffs of employees and other slush funds. Those shovel ready jobs that the Magic Negro hawked during the campaign accounted for less than 15%. Consequently, the stimulus bill was mainly about containing the status quo and rewarding his friends. With billions left in the kitty, Obummer is going to spend huge sums to keep the Democraps from getting slaughtered in Nov. Government spending is a band aid approach to fueling growth. Fools like Larry Summers, W.H. Economic Advisor, thinks the Gov. should spend more and jack up our debt another 200 bilion dollars. With morons like him, we are in deep shit.
"Our president delivered his State of the Union message to Congress. That is one of the things his contract calls for -- to tell congress the condition of the country. This message, as I say, is to Congress. The rest of the people know the condition of the country, for they live in it, but Congress has no idea what is going on in America, so the president has to tell 'em." ~ Will Rogers
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