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Moving the Stimulus Goalposts
June 29, 2009 11:18 AM
ABC News’ Rick Klein reports:
With public confidence in the stimulus package showing signs of ebbing, the Obama administration is continuing to sell its impact with nation-wide events and press appearances.
Today brings this explanation, from Christina Romer, the chairman of the president’s Council on Economic Advisers: Stimulus spending, Romer told the Financial Times, is “going to ramp up strongly through the summer and the fall.”
“We always knew we were not going to get all that much fiscal impact during the first five to six months. The big impact starts to hit from about now onwards,” Romer said.
We’ve known for some time that the money takes a while to get out the door.
But top Obama advisers haven’t always been so cautious in predicting how long the stimulus would take to be felt.
Back in February, with Congress moving swiftly to approve President Obama’s $787 billion stimulus package, White House budget director Peter Orszag said the benefits of the stimulus would “take weeks to months” to be felt.
Larry Summers, director of the National Economic Council, was even more optimistic: “You'll see the effects begin almost immediately,” Summers told CNN in February.
Just last month, Jared Bernstein, Vice President Joe Biden’s top economic adviser, joined administration officials in asserting that the stimulus was already working, despite rising unemployment rates.
“The idea here is that, yes, the unemployment rate is rising, but it would be rising more quickly [without the bill],” Bernstein said on ABCNews.com’s “Top Line.” “We're spending about $1 billion a day -- and, by the way, with very careful oversight -- and that's creating, again, economic activity that would not have occurred in the absence of this plan. That's the essential point.”
Then there’s the case of the now-famous chart, prepared in January by the Obama transition team to forecast employment rates with and without a stimulus bill in place.
Obama’s economic advisers saw unemployment cresting at just below 8 percent with the stimulus in place; without it, they forecast the national rate topping out around 9 percent.
The stimulus, of course, did pass, though the national unemployment rate is now 9.4 percent. Two weeks ago, President Obama predicted that unemployment will top 10 percent this year.
June 29, 2009 | Permalink | Share | User Comments (188)
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Hey Rick i think you should do a little more digging in that stimulus bill and identify which industries, lobbies, and organized groups who get a piece of the pie about 87% go to them and 13 % directly to people they forgot about unemployment insurance laws and it takes for shovel ready projects to work because it 100 degrees outside. Im a democrat and voted easily voted no for this crap. during the debate i said obama should veto and try another, looks like I was right again
Posted by: Quintell | Jun 29, 2009 11:40:40 AM
"the Obama administration is continuing to sell its impact with nation-wide events and press appearances."
I have to laugh to keep from crying. Centralized command and control economies SUCK !!!!!
Posted by: natb1 | Jun 29, 2009 12:03:58 PM
The best is yet to come. With commercial real estate defaults on the horizon, toxic assets never went away, and consumer mortgage ARMS are about to reset at higher rates....
10% unemployment is inevitable. And what's the Democrats response to that? More spending? More bureaucracy? More taxes?
Is this the "new era" of politics that Obama promised the sheep? Meet the New Democrats...same as the Old Democrats.
Do Democrats have solutions to anything that doesn't involve higher taxes and more government?
Posted by: John G. | Jun 29, 2009 12:12:23 PM
I cant believe anyone has confidence in these idiots to solve anything. Obama is a mushmouthed dunce and Biden is a clown. This is the beginning of the end...You have an inexperienced child at the wheel and an obsequious, fawning gladhanding 'yes man' with a porcelain smile fixed on his goofy face sitting behind him. WAKE UP AMERICA!!!
Posted by: Joe | Jun 29, 2009 12:22:37 PM
I have been unemployed since Aug 08. Unemployment insurance has provided only $ 1000.00 since then and Obama has made finding a job more difficult since he too office. Obama's solutions are not working and in fact are making things worse.
Posted by: OSUXS | Jun 29, 2009 12:22:53 PM
The corruption in washington is criminal.
Posted by: ratdog | Jun 29, 2009 12:23:23 PM
I voted for Obama.
I'm sorry, everyone. I won't the next time around.
Posted by: Mike Kuyel | Jun 29, 2009 12:26:17 PM
And now they have passed cap and trade which will cap our prductivity and send jobs overseas. No taxes for the middle class??? Just you wait and see what oil and fodd prices are going to do. This will hurt every family in the US.
Posted by: Darrell | Jun 29, 2009 12:27:50 PM
We don't need anymore stimulating. Look at Gov. Sanford. Ok just kidding. Seriously though, stimulus is a root cause of inflation which is coming down the pipes when the economy starts to pick up steam (velocity of money). Just listen to Ron Paul for the proper explanations.
Posted by: Huh | Jun 29, 2009 12:31:53 PM
The economy: You break it. You own it.
See you at the polls in 2010.
Posted by: trapeze | Jun 29, 2009 12:32:16 PM
People are slow to admit that they have been duped. For some people Obama or liberalism is a religion, and therefore is a matter of faith - not of reason. It will take a while for this to sink in, particularly with the fanatics. The question is, can the white house corrupt the census in time to prevent his ouster in 2012.
We joke about Obamas silence on the obvious election fraud in Iran... but voter beware, its coming to a voting booth near you... Thats why the census MUST be politicised and handled by the white house. What a wierd world it has become when such an obvious perversion of our constitution can be so blatantly executed right before our eyes...
Posted by: Jim J | Jun 29, 2009 12:34:44 PM
Wait a minute, an ABC news article that isnt totally pro Obama? It isnt very tough or truthful but it isnt kissing his rear like normal. Is the press going to wake up, that would be too good to be true. I think its funny that the only media outlet that is doing well is Fox. Maybe finances will wake them up to reality. I doubt it!
Posted by: Jerry | Jun 29, 2009 12:36:24 PM
Voting for Obama was the biggest mistake of my life.
Posted by: TK | Jun 29, 2009 12:37:23 PM
I regret voting for this guy....
regretmyvote
Posted by: RMV | Jun 29, 2009 12:38:27 PM
This generation, the next generation and probably even to the third and forth generations will not be able to recover from the damage this current administration and congress has already put in place. Osama Bin Laden could not have dreamed of a more efficient plan to destroy America than we have elected for ourselves.
Posted by: Don the Cynic | Jun 29, 2009 12:39:14 PM
More proof, (as if we needed any) that Obama and company are as clueless today as they were when they rammed this ill conceived waste of money through Congress. We will most certainly be bankrupt if people continue to listen to him.
Posted by: Glennis | Jun 29, 2009 12:39:18 PM
Moving the Goal posts?
I just hope they take their balls? and go home.
Posted by: Ted Fritsch | Jun 29, 2009 12:41:18 PM
No surprises here. How many more huge expenditure bills being rushed through and not performing as those who told us it “had” to be done “or else” do we need to do here before we say enough!
This is the exact reason why the so-called ObamaCare heath plans MUST be slowed down and really analyzed in much greater detail before we commit the country down that road.
==
“The idea here is that, yes, the unemployment rate is rising, but it would be rising more quickly [without the bill],” Bernstein said on ABCNews.com’s “Top Line.” “We're spending about $1 billion a day -- and, by the way, with very careful oversight -- and that's creating, again, economic activity that would not have occurred in the absence of this plan. That's the essential point.”
==
So the unemployment rate would be …hmmm…11, 12, 13 %…Now? Is that what we are NOW supposed to buy into?
Since these clowns have NO POSSIBLE way to verify ANYTHING when it comes to the so-called “saved” jobs, it is not possible to verify that statement. Think we will hear many of the MSM really challenge this administration on
Posted by: Mike_C | Jun 29, 2009 12:41:56 PM
In all my years in business I have come to learn that people with no experience, little talent and a phoney resume are the ones who always have a multitude of excuses, reasons and blame-casting.
The current administration is one big load of inept bungling politcos. They have one agenda and that is to pass every liberal scheme they can think of. The results of course is what many have been prediciting - it will fail.
We have no one to blame but ourselves for being duped by this conman and his supporters. Of course we are always the ones wanting more more more for me me me and we shouldn't be surprised that our selfish selection of Mr. Hope & Change has turned into a selection of Mr. Screw You.
Posted by: I was tryin to tell ya ,, | Jun 29, 2009 12:42:03 PM
I can't believe my eyes. A MSM outlet Not having an OBASM. WOW
Posted by: MP | Jun 29, 2009 12:43:22 PM
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