Economy No Longer Free Falling. Stimulus Package Isn't A Reason.

Yesterday on Fox News Sunday, Larry Summers said the economy's "unremitting freefall" has ended. That strikes me as a reasonable statement as equity, credit and volatility markets concur or, more accurately, have responded accordingly.

What, then, of the vaunted stimulus plan, which unpassed would lead to irreversible declines in the national economy?

So far, 1.8% of it has been spent. For the mathematically disinclined, not spending 98.2% of the stimulus didn't result in an irreversible decline.

Obama would never sell fear. Or would he?


Anonymous said...

I wouldn't be so quick to accept that the economy is no longer free falling. March unemployment was up 660,000.

Even if the free fall has stopped, but it is just shrinking slower, is that something we want to do nothing about? Even if the economy is flat, do we want to accept a reset to 8.5% unemployment?

The depression of the 1930's lasted as long as it did in part because leaders were too quick to declare victory.

The Daily Pander said...

1) March unemployment wasn't UP 660,000. It was up TO 660,000 (or thereabouts).

2) Who advocates doing nothing? Actually, doing nothing IS doing something. Doing nothing is a choice just as is doing something.

3) My point is BHO sold this as a cure for the otherwise irreversible. It wasn't and his own administration's words and deeds bear that out.