Did Stimulus Avert 2nd Great Depression?

[ugabuga]

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?

News Headlines

 

[Edgy Grammy]

I was a mere glint in my daddy's eye when the stockmarket crashed....but have heard tales and have read about it. I personally do not feel the stimulus avoided anything, because it was too packed with extras and wasteful spending. If it had been written with a specific purpose and without all the frills, and also worked on by both parties, and everyone had read it, line by line and removed the "trash" before passing it, then I might agree that it really did stimulate our economy. As a Congress watcher for many years, our elected officials aren't there to serve the American people, they are there as a career, and with that as their aim, they don't make decisions for us, they make decisions for "THEM." Our country has abandoned the belief that they can do things on their own, that they can start over, that they can budget, that they can save, that they can work hard, that they can take care of their families on their own...now it is what can I get for free and who can I get to take care of me. Where is the personal self control, in number of children one has, in what house can I really afford, what model of car do I drive, how many times I use my credit card and max it out? I realize I am from another generation, but I really think we had it better because we accepted that we were the master of our own ship...we were responsible for our actions and our decisions and we looked to ourselves for that helping hand. I know I got off subject but felt like rambling this morning.

 

[Andy A]

I was a mere glint in my daddy's eye when the stockmarket crashed....but have heard tales and have read about it. I personally do not feel the stimulus avoided anything, because it was too packed with extras and wasteful spending. If it had been written with a specific purpose and without all the frills, and also worked on by both parties, and everyone had read it, line by line and removed the "trash" before passing it, then I might agree that it really did stimulate our economy. As a Congress watcher for many years, our elected officials aren't there to serve the American people, they are there as a career, and with that as their aim, they don't make decisions for us, they make decisions for "THEM." Our country has abandoned the belief that they can do things on their own, that they can start over, that they can budget, that they can save, that they can work hard, that they can take care of their families on their own...now it is what can I get for free and who can I get to take care of me. Where is the personal self control, in number of children one has, in what house can I really afford, what model of car do I drive, how many times I use my credit card and max it out? I realize I am from another generation, but I really think we had it better because we accepted that we were the master of our own ship...we were responsible for our actions and our decisions and we looked to ourselves for that helping hand. I know I got off subject but felt like rambling this morning.

Great post, EG. I am probably of the same generation but possibly a little "more elderly" than you. The only thing I would add is we were a generation that took care of those really in need. Welfare was a "dirty word" because you were expected to work if you were able to do so. The one difference is jobs were plentiful then, so some slack is due those capable of work but unable to find it. Back to the question at hand and it is a personal opinion. I really don't think the stimulus package has accomplished much due to the way it has been handled. Much of it is still unspent and it has been as much a grab of control by the executive branch as a stimulus to those in need.

 

[scooterbug44]

I think it helped, but not as much as they claimed or hoped.

 

[Lynnie]

Those who are for government intervention will say 'yes' and those who are not for government invention will say 'no.' However, I don't think these stimulus bills did anything to improve or grow GDP. Growth is cyclical. And, the definition of depression is six consecutive quarters of reduced GDP.

It is suggested that the psychology and effects of the word 'depression' will cause panic and that sometimes the numbers are manipulated to offset an impending depression. The nerve!!

 

[LuciferSam]

Those who are for government intervention will say 'yes' and those who are not for government invention will say 'no.' However, I don't think these stimulus bills did anything to improve or grow GDP. Growth is cyclical. And, the definition of depression is six consecutive quarters of reduced GDP.

It is suggested that the psychology and effects of the word 'depression' will cause panic and that sometimes the numbers are manipulated to offset an impending depression. The nerve!!

I don't know why you'd assume people stating their opinions would put objectivity aside. This may be an issue that can be proven one way or another.

 

[Andy A]

I don't no why you'd assume people stating their opinions would put objectivity aside. This may be an issue that can be proven one way or another.

And it is just as possible it cannot be proven one way or another, as I'm sure you're well aware. Also, I don't think anyone is putting objectivity aside.

 

[Lynnie]

I don't no why you'd assume people stating their opinions would put objectivity aside. This may be an issue that can be proven one way or another.

Sure, and in a few years when we are out of the woods, we can all look back objectively and say, 'yes.' Nah.

 

[LuciferSam]

And it is just as possible it cannot be proven one way or another, as I'm sure you're well aware. Also, I don't think anyone is putting objectivity aside.

Lynnie clearly stated that she thinks people are doing just that. She said "Those who are for government intervention will say 'yes' [stimulus averted depression] and those who are not for government invention will say 'no [stimulus did not avert depression].' That sort of thinking is subjective.

The article opens up by saying, "officials from both the Bush and Obama administrations have trumpeted how the government?s sweeping interventions to prop up the economy since 2008 helped avert a second depression". That would indicate that interventionist and non-interventionists alike were able to put their feelings aside and look at the data analytically.

 

[Bob]

in the good ole days the great generation could only dream of going to branson on the government's dime. back then everyone worked for a buck a day and the coloreds couldn't vote. it was a wonderful white bread world of repression, fear, and guilt on sunday. of course the stimulus didn't work because there were no freebies for the blue hairs.