Where is the “Recovery”? Where Did the “Stimulus” Go?

[girl gone mad]

Where is the “Recovery”? Where Did the “Stimulus” Go?

By Eric Tymoigne

http://neweconomicperspectives.blogspot.com/2011/07/where-is-recovery-where-did-stimulus-go.html">New Economic Perspectives

The new BEA figures about economic activity continue to point to a replay of a Japanese-style lost decade or, even worse, a 1937 scenario. The current expansion has been the weakest on record since World War Two and the trend since the early 1980s does not provide much comfort. Figure 1 shows that each economic expansion since the 1980s has been weaker and weaker and the rate of decline has accelerated.

The current debate in Washington does not provide any comfort for the short run or the long run with both political parties willing to jeopardize whatever economic growth we have left over a fictitious ceiling that serves no economic purpose. All this suffering is supposed to help in the long run because of the good that will come from “reforming” (read “dismantling”) pillars of economic progress like Social Security.

The 2009 Obama “stimulus” is long gone and all levels of government negatively contributing to economic growth. Since the third quarter of 2009, the contribution of the government to economic growth has been nil on average.

All this provides one more clue that the current large deficits have nothing to do with government spending running wild. This also provides a clue about how little has been done in terms of productive spending by the government since the beginning of the expansion. Most of the help provided by the government was to hopelessly insolvent institutions that should have disappeared from the face of the earth a long time ago.

http://neweconomicperspectives.blogspot.com/2011/07/where-is-recovery-where-did-stimulus-go.html">more...

[McCamy Taylor]

1. I think it went to Texas so Rick Perry can brag what a great executive he is.

[aquart]

2. Well, Texas is certainly in need of federal help.

Crops and cattle dying of drought.

[Possumpoint]

3. Bad Economic Policy

Compounded by excessive debt on both a personal and governmental levels has resulted in constraints on economic reality not previously experienced.

[divvy]

4. Correction: The bad fiscal policy of the GOP.

Lets not forget who got us into this mess and who is making it worse.

[Possumpoint]

6. If You Think That Only The Republicans Are At Fault

You are part of the problem.

[ixion]

8. exactly n/t

[divvy]

12. see post #11 below ........

[WinkyDink]

9. Obama forfeited the game when he did not push for the death of the Bush tax-cuts.

And who initiated the cockamamie "FICA Break" for businesses, that will take $$ out of the SS fund? Hint: He's sitting in an oval-shaped office.

[WinkyDink]

5. Obama has been bamboozled big-time, because of his intransigence about the 60's.

He has scorn for the Boomers ("I come from a new generation"); "the battles" of the 1960's (he never experienced the Civil Rights Movement, e.g., or worried about being drafted for VietNam), as he terms those momentous life-and-death---literally---struggles; his grandparents never had to depend on Social Security (Maternal Granny was a bank VP in Hawaii); he values the ideas of Emanuel, Geithner, Duncan, Simpson, et al.

I don't doubt his intellect; I wonder about his understanding.

This is all my arm-chair opining. I await a serious psychological biography of Obama.

[ixion]

10. I don't think he's been bamboozled.

I think he's being a typical corporatist career politician. He'll be out fishin' with Clinton and Poppy Bush in no time. Mark my words.

[divvy]

11. You have been bamboozled ..... see this proof

This "crisis" is really about republican debt. Obama is trying to be bi-partisan when he says that both parties share blame.



host site for the above graphic http://www.whitehouse.gov/blog/2011/07/26/infographic-where-does-our-national-debt-come

The average maturity of all outstanding US Treasury debt in 2010 was a little over 5 years in 2010. This means that the principal (think balloon payment) on all maturing treasury bonds (1/2 of all treasury debt is due in about 5 years) must be paid. Instead of paying 2 cents per dollar, we have to pay back the dollar. Make no mistake. This money was spent by the republican bastard.

[divvy]

13. sorry, this was supposed to be in response to post #4

I posted it in the wrong spot by mistake. Sorry.

[ixion]

7. Where is the “Recovery”? - There never was a 'recovery'.

Where Did the “Stimulus” Go? - into the pockets of the top 1%.

[girl gone mad]

14. Pretty much. n/t