U.S. Economy Gets Lift From Stimulus

According to Wall Street Journal Deborah Solomon’s reporting:
P1-AR408_Stimul_DV_20090901180516

Government efforts to funnel hundreds of billions of dollars into the U.S. economy appear to be helping the U.S. climb out of the worst recession in decades. But there’s little agreement about which programs are having the biggest impact. Some economists argue that efforts such as the Federal Reserve’s aggressive buying of Treasury debt and mortgage-backed securities, as well as government efforts to shore up banks, are providing a bigger boost than the administration’s $787 billion stimulus package.

Economists say the money out the door — combined with the expectation of additional funds flowing soon — is fueling growth above where it would have been without any government action.

In other words, government action was required to avoid a complete meltdown but the relative efficiency of any given government action cannot be assessed precisely, which isn’t at all surprising given we are in uncharted waters.

So much for the “government is the problem” crowd.

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2 Responses to “U.S. Economy Gets Lift From Stimulus”

  1. spudder Says:

    You left wing nuts got to be kidding, this is one of the worst recoveries since the great depression, why doesn’t some just admit that no one knows what they are doing, the can line their pockets but thats aout it , let count using your fingers and toes, you could borrow some one elses if you don’t know what comes after 9.

    • rectonoverso Says:

      Methinks you didn’t read the article. WSJ joiurnalists are not known for their left wing politics. Besides, the financial crisis we are recovering from was the greatest since the Great Depression, no wonder it takes longer to recover. The point is, as explained in the article, it would be even worse without the stimulus package and the TARP program.

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