The U.S. Economy Pre-stimulus/Post-stimulus

[erdawiro]

Graph, after graph, after graph.

[JBond]

It would be interesting to compare those numbers to the Reagan recovery that did not require a trillion dollar loan.

[erdawiro]

It may look interesting but that comparison wouldn't be entirely relevant because there were different causes.

It's kind of like being a doctor, not everyone who has pain in their abdomen has the pain for the same reason. Different cause, different symptoms, diffent treatment.

However, you can go here if you want to compare.

[Supply Sider]

The Minneapolis FED site has a handy dandy feature that allows you to compare recoveries of all post-World War II recession.

http://www.minneapolisfed.org/public...tive/index.cfm





This past recession has seen the weakest recovery of all previous recessions.

I should also point out that, according to the National Bureau of Economic Research, the recession ended in June 2009 -- only four months after the stimulus was passed. This was well before the bulk of the stimulus funds were spent and well before it would've had any major impact on the economy.

In fact, by Feb 2010, only a third of total Stimulus funds had been spent and most of that had been on government jobs and social services. It wasn't until the second year of the Stimulus that spending for infrastructure was set to begin in earnest. That was when private sector employees were supposed to see a major boon from it.

Here's the specific comparison you were seeking:



Of course, most Keynesians will tell you that Reagan was just a dotty old man who got lucky and that Obama had to save us from the worst economic downturn since the Black Death while simultaneously staving off an invasion from a vile race of lizard-like aliens who feed off the pain and suffering of children and the economic health of first world nations.

[JBond]

Thank you Supply Sider. I knew this was right up your alley. I noticed erd started his defense quickly after I asked for a comparison. Hopefully he will provide a more comprehensive rebuttal than just saying it is different so it does not count.

[erdawiro]

I'm doing some over due home repairs today but I will probably have an opportunity to respond late tonight.

[Supply Sider]

Thank you Supply Sider. I knew this was right up your alley. I noticed erd started his defense quickly after I asked for a comparison. Hopefully he will provide a more comprehensive rebuttal than just saying it is different so it does not count.

The recessions were different in that their causes were different. That's a fair statement. The 1981 recession was caused by slow job growth and high inflation due to an over-regulated market. The 2008 recession was caused by the collapse of the housing market.

Now, whether or not one was a trickier fix than the other is debatable. However, it's not as if the US has never faced a bad recession before, and the 1981 recession was also "the worst economic downturn since The Great Depression."

[JBond]

The recessions were different in that their causes were different. That's a fair statement. The 1981 recession was caused by slow job growth and high inflation due to an over-regulated market. The 2008 recession was caused by the collapse of the housing market.

Now, whether or not one was a trickier fix than the other is debatable. However, it's not as if the US has never faced a bad recession before, and the 1981 recession was also "the worst economic downturn since The Great Depression."

I agree different factors caused the recessions, but they also had some common factors. The main one being the government.

[Cajuncowboy]

But unemployment won't go above 8%.

LOL!

[JBond]

I'm doing some over due home repairs today butter I will probably have an opportunity to respond late tonight.

Hope the home repairs are going well. I understand. I am in the process of selling my home. I only lost $30,000. Many friends lost more.