(IBD)

Recent data confirms that the Obama-Pelosi $787 billion stimulus plan did not lift the US out of a depression.
Investor’s Business Daily reported:

It has become a common refrain at the White House and among administration supporters that President Obama’s aggressive efforts to stimulate growth prevented an economic catastrophe.

“We had to hit the ground running and do everything we could to prevent a second Great Depression,” Obama told supporters last week.

Politically, the claim makes sense. Casting the challenge Obama faced as immense can help explain the economy’s lackluster performance in the two years since the recession officially ended.

But is it an accurate portrayal of what really happened?…

…The argument is often made that the recession turned out to be far worse than anyone knew at the time. But various indicators show that the economy had pretty much hit bottom at the end of 2008 — a month before President Obama took office.

Monthly GDP, for example, stopped free-falling in December 2008, long before the stimulus kicked in, according to the National Bureau of Economic Research. (See nearby chart.) Monthly job losses bottomed out in early 2009 while the Index of Leading Economic Indicators started to rise in April.

The stimulus timing is off.

When the recession officially ended in June 2009, just 15% of the stimulus money had gone out the door. And that figure’s likely inflated, since almost a third of the money was in the form of grants to states, which some studies suggest they didn’t spend, but used to pay down debt.

Other programs Obama often touts — Cash for Clunkers, mortgage help, homebuyer tax credits, the auto rescue plans — either came as the recession had ended or was ending or were widely deemed to be busts.

But, the stimulus did accomplish something…
Obama was able to triple the deficit in one year.

Obama said he was going to cut the deficit in half back in 2009. Instead he tripled it his first year in office and it’s only getting worse.

The Obama deficit this year may reach $1.65 trillion. (The Captain’s Comments)
The stimulus did accomplish that much anyway.

 

 

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  1. No surprises here…

  2. It is not hard to explain, we are in a depression. A depression is defined as 4 quarters of declining GDP

    Facts-

    2010 US Federal Deficit spending was 9.6% of GDP
    2010 US GDP growth rate was stated as 2.6%
    2010 US effective GDP growth rate was a NEGATIVE 7%

    There is no refuting the numbers.

    This is a DEPRESSION.

    2011 is looking to have the exact same numbers. You do not climb out of a depression by borrowing GDP from the future. It does NOT WORK!

    Welcome to the Democrat Depression.

  3. Gee, can’t wait to vote for this “brilliant” president! Gee, where can I send money for his campaign? He apologizes for America, hates our allies, accuses people of racism when you disagree with him, is trying to destroy Israel and has all but destroyed our economy. Sounds like a real Democratic icon to me!!!! My dog wants to vote for him too!!!

  4. “…But It Did Triple the Deficit”

    I find that kind of depressing so I guess they made it worse. No wonder they want to put lithium in the water.

  5. Obama: “We’re headed in the right direction.”

    This outcome is the result of careful planning.

    Everything is going according to that plan, thus far.

  6. I’M shocked! Just shocked! Who could have possibly foretold this outcome? And, I cringe every time someone credits bambi with this boondoggle. I’m sorry, but, he’s not intelligent enough to have come up with this agenda. He certainly agrees with what it is doing to the country, but, it is not of his design. When you listen to this guy say anything not written for him by his puppet master, it’s obvious that a high I.Q is not one of his burdens in this life.

  7. odumbass….accomplishing what the dumb A$$ES elected him to do…destroy america…well dumb lefties and commies

  8. It does NOT WORK!

    What’s funny is that there are bona fide idiots that even now are calling for more government spending to get things going.

  9. Hey Blaque (just love that name!), they are not idiots. They are called politicians (or wanna be’s) looking for money to buy votes.

    Would you like to make a bet that the Obama campaign (if he indeed ends up being their candidate which is not a shoe-in by any means) will tell all the state government union workers that he was the one behind helping them keep their jobs because of the stimulas money from the fed? Remember, it wasn’t for shovel ready jobs because they didn’t exist. So, where do you think the money went?

  10. “DOH!!” – Obama

  11. Bush, Bush, Bush!!!

  12. Graph 1 refutes the basis of your story. It clearly shows that the stimulus DID stop the recession.

    Graph 2 is wrong. The FY2009 was George W Bush’s last budget year. Barack Obama’s first budget year was FY2010.

  13. Though Bush was not a fiscal Conservative by any means, here is another area where Obozo should have copied Bush as he at least would have avoided bankrupting the country.

  14. To anyone dumb enough to believe the outrageous claim the current economic problems are Bush’s fault, take note: Obama admits he doesn’t know how to get the economy going again every time he says we should get used to higher unemployment and slower growth. Obama’s policies didn’t work so he has nothing to propose. Instead he is playing a blame game and throws stones at the people who do know how to get the economy going again. The Presidency is so far beyond this mans level of competency that he’s fallen back to the only political tactics he knows – community organizing. So he pits groups of people against each other trying to foster hate, racism, anger, resentment, and class warfare while he demonizes, regulates, and attacks the businesses and working people who he needs to create the jobs and end this mess.

  15. And Obama’s response will be: the stimulus wasn’t big enough, we need to raise taxes and spend more!

  16. Cloward and Piven

  17. #12

    2009 was Bush’s budget…Then Hussein passed the 787 billion dollar stimulus. Also, most banks paid back their TARP money. Where did the TARP funds go??? Obozo was heading for a 2T dollar fiscal 2009 before diverting TARP funds to cover some of his spending…Nice try, thanks for playing…

  18. I guess whacko forgot that the omnibus spending bill was delayed(by oshortbus’ request), until zero took office. You remember the one that wasn’t suppose to include earmarks, and zero claimed he wouldn’t sign if it did. Yeah, I know, whacko missed that day in a drunken stupor.

  19. Bush submitted a 2009 budget to Congress which contained a deficit if $400 Billion. Congress held the budget until BO was inaugurated, together they tacked on billions in pork and BO signed it BEHIND CLOSED DOORS!

    This is the 2009 budget Bush proposed. The dem Congress withheld it from him in anticipation of the swearing in of BO.

    But even in the unlikely event that he were to get his way, the budget deficit would jump sharply, from $163 billion in 2007 to about $400 billion in 2008 and 2009 — partly the result of the new economic stimulus plan. Such deficits would rival the record deficit of $412 billion of 2004, though administration allies argue that shortfalls of that size now represent a smaller share of the overall economy and are thus more manageable.

    http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020202042.html

    This is the budget Obama signed because the dem Congress held it back until BO was sworn in. You know, THE ONE HE SIGNED BEHIND CLOSED DOORS!

    http://www.msnbc.msn.com/id/29632177/

    Did you know that Bush left $350 Billion of the TARP funds for BO?
    http://money.cnn.com/2009/01/10/news/economy/bush_request_restoftarp/index.htm

  20. It took quite a few decades to dispel the myth that FDR and his governmental intervention reduced the severity of the Great Depression. Many historians and economists now acknowledge that all the government interference and expansion prolonged the Depression and made it worse than would have been experienced without the federal government mucking things up. Obama will be long gone when the truth about his interference becomes widely known.



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