Officials from Bush and Obama administrations have contend the government?s sweeping interventions?to prop up the economy?since 2008 helped avert a second Depression.
Now, two leading economists say,
?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.?
Not surprisingly, there are voices on the other side. A Stanford professor says Obama's stimulus has had ?very little impact and not much to show for it except a legacy of higher debt.?
Did Stimulus Avert 2nd Great Depression?
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From the Associated Press..........WASHINGTON (AP) -- The recession was deeper than the government previously thought.
The Commerce Department, in revisions issued Friday, estimates the economy shrank 2.6 percent last year -- the steepest drop since 1946. That's worse than the 2.4 percent decline originally estimated.
The economy's plunge underscores why the unemployment rate surged to 10.1 percent in October, a 26-year high.
The Commerce Department, in revisions issued Friday, estimates the economy shrank 2.6 percent last year -- the steepest drop since 1946. That's worse than the 2.4 percent decline originally estimated.
The economy's plunge underscores why the unemployment rate surged to 10.1 percent in October, a 26-year high.
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