Obama Basically Nixes Second (Third?) Stimulus

Well I think you can consign any second (third?) stimulus program to the dustbin. President Obama basically said yesterday that he was sticking to his plan, it is having a positive effect and it was designed to work over time.

From Politico.com:

After beginning his with a recap of his “progress on these challenges abroad” during his trip overseas this week, Obama quickly pivoted to the stimulus and offered a direct challenge to right-wing critics of the government spending, saying they “have yet to offer a plausible alternative.”

First, he sought to reframe the public’s expectations for the spending program. “The Recovery Act wasn’t designed to restore the economy to full health on its own, but to provide the boost necessary to stop the free fall,” Obama said. “It was designed to spur demand and get people spending again and cushion those who had borne the brunt of the crisis.”

And then he pronounced the stimulus plan a success: “In a little over one hundred days, this Recovery Act has worked as intended. It has already extended unemployment insurance and health insurance to those who have lost their jobs in this recession. It has delivered $43 billion in tax relief to American working families and businesses. Without the help the Recovery Act has provided to struggling states, its estimated that state deficits would be nearly twice as large as they are now, resulting in tens of thousands of additional layoffs – layoffs that would affect police officers, teachers, and firefighters.”

“As I made clear at the time it was passed, the Recovery Act was not designed to work in four months – it was designed to work over two years,” Obama said. “We also knew that it would take some time for the money to get out the door, because we are committed to spending it in a way that is effective and transparent.”

I guess I’ll give him good marks for sticking to his guns. I also hope he recognizes he doesn’t have a bottomless pit of money to call on and is engaged in a little fiscal responsibility here.

On the other hand, the constant claim that things would be worse if we hadn’t put this stimulus plan in place is wearing thin. I don’t think that one is going to play well with the public for long.

To the best of my knowledge he did not say that Joe Biden would make his next appearance on a Sunday talk show sometime in 2014.

Comments

[Prudent Man...:]

The TARP did unfreeze the commercial paper as it was originally inteded to do until Congress, which can screw up a free lunch, got their greedy hands in the money pot and made a mess of things along with the Treasury and Fed bureaucrats led by the president of tne NY Fed, Tim Geithner.

Jul 12 12:28 PM

[Dave Wrixon:]

He is a realist. He hasn't got a chance in hell of getting it past congress. If he had it would have already been squandered.

Jul 12 05:57 PM

[conceptwizard:]

Obama said. “It was designed to spur demand and get people spending again and cushion those who had borne the brunt of the crisis.”

I would give this an F minus, we have zero demand, savings is up 6.9% from zero. as far as cushioning people they are living in tent cities and benefits are running out.


He then said:
“We also knew that it would take some time for the money to get out the door, because we are committed to spending it in a way that is effective and transparent.”

The money is moving very slowly and headed for projects with shortterm job creation. The housing is the crucial part of this and foreclosures are still mounting and house construction is still falling.
I give him a "D" for this effort.

Do far I see no impressive results that anyone would be proud o lay claim to. He is sticking to his guns as it should be the "Captain should go down with his ship".

Jul 12 07:16 PM

[Ryu Mei Co:]

We can't really tell if a Second stimulus is needed or not till the Banks give their earning report.

IMO, looking at the way things go right now, it is not surprise US do need a second one. Japan needed a second one too, but it is not going to help at all.

Jul 12 08:44 PM

[whidbey:]

The stimulus design was not calculated to do anything about the recovery. The President's minions just knew the recession would cure itself in time (which is true).

Blame Bush in the interval, they said! The initial stimulus was a cover for a cynical move pitched to the wrong audience( his followers) who do not exactly run anything; It was poorly timed for a recovery but it was designed to pay the President's electoral bills to his base. Nothing like that could work for the economy but it might buy time. We have been had.

The truth is we have never had worse leadership, when we need help the most. the Harbingers of Hell are upon us this fall as the mans limitations become public. We have elected a President and and Congress who are wandering in a desert. As time goes on, they toss away the maps back to a civilization. Comes fall comes new debt and despair.

Jul 12 08:59 PM

[sethmcs:]

In time the stimulus will work. The economy will recover. The excess will be worked off and we will have forgotten about this recession. Just the same way the last recession was forgotten. The business cycle is same as it ever was.

The recession wasn't Obama's doing although he will be blamed and the recovery (not a question of if, but when) will not be Obama's victory.

Actually I am enjoying this recession having lived through several because there is a whole generation out there who haven't lived through hard times and lived way beyond their means. Perhaps this recession will educate these folks.

Jul 13 12:17 AM

[awake09:]

It's good to be positive, unless it's cancer you are trying to think your way out of. Nothing is being dealt with so far, only more borrowed money, paid to cronies and to the electoral base. We will not recover, we'll only get a feeling of euphoria from the Demerol of Hussein's spending spree. If it didn't work for Bush, why is it suddenly working for this one?


On Jul 13 12:17 AM sethmcs wrote:

> In time the stimulus will work. The economy will recover. The excess
> will be worked off and we will have forgotten about this recession.
> Just the same way the last recession was forgotten. The business
> cycle is same as it ever was.
>
> The recession wasn't Obama's doing although he will be blamed and
> the recovery (not a question of if, but when) will not be Obama's
> victory.
>
> Actually I am enjoying this recession having lived through several
> because there is a whole generation out there who haven't lived through
> hard times and lived way beyond their means. Perhaps this recession
> will educate these folks.

Jul 13 02:43 PM

[milkchaser:]

When he wanted this clunker passed, Obama said that it was absolutely and immediately necessary to save the economy now. Now he says that he always claimed that the stimulus would take time to work. Sounds like he is rationalizing its failure.

Jul 13 07:33 PM

[milkchaser:]

Keith Hennesy has an excellent response to Obama's Op-Ed here:
keithhennessey.com/200.../

He calls out Obama's use of "straw man" arguments.

Jul 13 07:37 PM

[milkchaser:]

sethmcs -- I am convinced that this recession will not soon be forgotten, nor will Obama's misguided response to it.

Jul 13 07:39 PM

[W.E. Heasley:]

Interesting article.

"On the other hand, the constant claim that things would be worse if we hadn’t put this stimulus plan in place is wearing thin. I don’t think that one is going to play well with the public for long".

May we add the Straw Men Arguments constantly put forth by Obama?

May we add "Jobs Saved", the non-existent statistic?

May we add 15% (real rate) of Unemployment?

May we add Social Engineering?

Jul 14 12:27 AM