Christina Romer is leaving and admitting in her exit speech that the stimulus has failed.
She gets points for honesty. More than I can say for the President and his court jester Joe Biden but she loses all of those points and actually goes back into the red for being an imbecile.
Two reasons why this dolt shouldn't be taken seriously and why the President's judgement once again should be called into question when it comes to the people he surrounds himself with.
1. Romer today called for a second round of fiscal stimulus to further boost aggregate demand, a tacit admission that her first round was a failure: ummm...... yeah throwing gasoline on that fire doesn't seem to be putting it out.... so..... hey lets try throwing MORE gasoline on it...that should do it!!
2. Further, Romer asserted that the current recession represents an unprecedented problem, one that continues to puzzle economists to this day.
“To this day, economists don’t understand why firms cut production as much as they did, or why they cut labor so much more than they normally would,” said Romer. “The current recession has been fundamentally different from other post-war recessions… Rather than being caused by deliberate monetary actions, it began with interest rates at low levels… Precisely what has made it so terrifying, and so difficult to cure, is that we have been in largely uncharted territory.” This is what happens when you put a professor in charge. Economists have no idea? That's funny because everyone on Wall St. from the runners on the floor to the retail brokers in midtown to the bosses in the boardroom knows exactly why firms cut production and labor so much. They're scared of the socialist agenda of our president and his council of economic advisors!! Make a lot of money? Well there's a "windfall profits tax". Own a small business? Well you're rich and your taxes are going up. Send your call centers offshore to cut costs? You're going to pay for that AND be demonized by this administration..I could go on for pages and pages about how anti-business this administration is.
It seems pretty simple I know but sometimes the simple answer is the correct answer.
3 comments:
Many economists said at the time that the stimulus needed to be bigger and more aimed at things that would create jobs like infrastructure repair, which is badly needed.
And, for the record, the economy was broken before the last election.
Yes and many economists said the stimulus was a bad idea. Thomas Sowell for example. More targeted? Yes maybe less money for green jobs or pet projects would have helped. Maybe NOT bailing out fannie mae and freddie mac would have been a good idea. Maybe NOT bailing out the auto industry and instead using the stimulus to cut taxes on employers. I'm sure better aim could have yielded better results.
I'm not an economist and I'm not even telling you that the stimulus was the worst idea in the world but I am telling you that one of the biggest contributors if not the biggest to the lack of a rebound in the economy is the anti business attitude of the administration.
This is not a guess or a theory. This is fact and all the stimulus in the world won't turn this economy around if congress doesn't change in november.
Or how about the 3.4 million bucks for a turtle tunnel in FL, 1 million bucks to hand out blackberry's to smokers, 9.3 million for Harvard to build flying robotic bees and I really don't want to list the other 100 wasted programs that equal about 5 billion dollars. Yea, you could say it should have been aimed more.
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