In a new paper, the economists argue that without the Wall Street bailout, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama administration’s fiscal stimulus program, the nation’s gross domestic product would be about 6.5 percent lower this year.
In addition, there would be about 8.5 million fewer jobs, on top of the more than 8 million already lost; and the economy would be experiencing deflation, instead of low inflation.
The paper, by Alan S. Blinder, a Princeton professor and former vice chairman of the Fed, and Mark Zandi, chief economist at Moody’s Analytics, represents a first stab at comprehensively estimating the effects of the economic policy responses of the last few years.
“While the effectiveness of any individual element certainly can be debated, there is little doubt that in total, the policy response was highly effective,” they write.
Answer by lovinangels at 12:38 PM on Jul. 29, 2010
Answer by LoriKeet at 8:59 AM on Jul. 29, 2010
Oh wait, was this supposed to be a serious article.....I thought it was a joke.
You can always find a leading (insert expert) to report whatever you want reported...think Climategate.... That doesn't make it true. Any idiot that has taken Economics 101 knows you can't spend what you don't have and the only way you can "spend money to make money" is if you have money to INVEST in something.
Answer by yourspecialkid at 10:44 AM on Jul. 29, 2010
Answer by sati769leigh at 8:51 AM on Jul. 29, 2010
Answer by NannyB. at 9:01 AM on Jul. 29, 2010
LoriKeet has said it all, nothing left for me to add.
Thank you LoriKeet. LOL
Answer by Natesmom507 at 9:58 AM on Jul. 29, 2010
UGH!! I CAN'T believe that Obama is speaking RIGHT NOW, and saying that what he did economically was "right" and even though "not popular" that our country is in recovery mode....and the crowd is CHEERING?!?!?
Answer by LoriKeet at 10:13 AM on Jul. 29, 2010
Answer by Carpy at 10:46 AM on Jul. 29, 2010
I am not one to count my chickens before they hatch. I don't think we have seen the worst of things to come, so I naturally would have to disagree that we have avoided anything.
Answer by QuinnMae at 11:31 AM on Jul. 29, 2010
Oh, and if 10% unemployment and trillions of dollars of debt is the CHANGE so many were HOPING for, then you got what you wanted! Happy now?! *sigh*
Answer by LoriKeet at 9:20 AM on Jul. 29, 2010
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