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5 Bumps

Should we have another stimulus?

Economists Timothy Conley and Bill Dupor have studied the effects of the American Recovery and Reinvestment Act (the purported stimulus bill) with great rigor. Earlier this week, they reported their findings in a paper titled "The American Recovery and Reinvestment Act: Public Sector Jobs Saved, Private Sector Jobs Forestalled." The paper is dense and rather lengthy, and requires considerable study. Here, however, is the bottom line:

Our benchmark results suggest that the ARRA created/saved approximately 450 thousand state and local government jobs and destroyed/forestalled roughly one million private sector jobs. State and local government jobs were saved because ARRA funds were largely used to offset state revenue shortfalls and Medicaid increases rather than boost private sector employment. The majority of destroyed/forestalled jobs were in growth industries including health, education, professional and business services.

So the American people borrowed and spent close to a trillion dollars to destroy a net of more than one-half million jobs. Does President Obama understand this? I very much doubt it. When he expressed puzzlement at the idea that the stimulus money may not have been well-spent, and said that "spending equals stimulus," he betrayed a shocking level of economic ignorance.

I would call this a big fail. But I called it that when they passed it.

Answer Question

Asked by Carpy at 2:02 PM on May. 16, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (22)
  • Well, sure, after that report... why not?
    Ugh, I didn't need that report to know we don't need MORE damn spending

    Answer by itsmesteph11 at 2:06 PM on May. 16, 2011

  • Can I say I TOLD YOU SO? I don't think BO understands anything not directly affecting him.


    Answer by yourspecialkid at 2:07 PM on May. 16, 2011

  • Oops! Answer to OQ..............Not just NO...but hell NO.


    Answer by yourspecialkid at 2:08 PM on May. 16, 2011

  • No.

    Answer by gemgem at 2:12 PM on May. 16, 2011

  • i have a better idea. tax breaks. i think if we could get a couple of tax breaks on certain things throughout the year like they do sometimes before school starts that would really help.

    Answer by shay1130 at 2:16 PM on May. 16, 2011

  • Absolutely not! No frickin' way!

    Answer by Anonymous at 2:18 PM on May. 16, 2011

  • They can stimulate me, and everyone I know. How about sending Americans their money? I mean give us all enough to buy a car, or a house, pay down bills, to shop, and I bet the economy would improve.

    Answer by Anonymous at 2:19 PM on May. 16, 2011

  • Sure!! Why not?! They can just print more money, right?! RIGHT?!

    *sigh* :o)

    Answer by LoriKeet at 2:31 PM on May. 16, 2011

  • B





    Answer by sweet-a-kins at 2:33 PM on May. 16, 2011

  • Timothy Conley

    ssociate Professor
    Research Interests

    Applied and Theoretical Econometrics; Development; Empirical Industrial
    Teaching Fields

    Representative Publications

    "Inference with Dependent Data Using Cluster Covariance Estimators," forthcoming Journal of Econometrics (with C. Alan Bester and Christian B. Hansen)

    "A Note on Inference with 'Difference in Differences' with a Small Number of Policy Changes" (with Christopher R. Taber)
    (Code to Download)

    "GMM Estimation with Cross Sectional Dependence," Journal of Econometrics Vol. 92 No. 1 (September 1999), 1-45.
    (Code to Download)

    Comment by Carpy (original poster) at 2:38 PM on May. 16, 2011

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