I've been seeing this ad a lot lately here in Ohio and I can't help but think that the person who wrote this moon-lights as a crazy guy screaming on the street corner. But it got me to thinking, how exactly did the Stimulus effect the economy, namely the jobs data, as that was its purpose. Especially since the Obama administration has been touting the now ubiquitous job creation graph.
While I'm not an economist, I do like to think that I'm able to read graphs, so while I might not know exactly what all of this terms mean, there does seem to be some sort of correlation between the Stimulus (which was passed February 2009) and positive economic data.
Now, we all know that correlation does not imply causation (as it would be silly to think that there is a causation between a decline in pirates and an increase in the global temperature). However, there does seem to be a great positive trend in the unemployment rate, GDP growth, and total private-sector payrolls (amongst other things) immediately following, or in the near term after, the passing of the American Recovery and Reinvestment Act.
So, Mr. Romney, where did this money go? It seems like it went where it was supposed to, perhaps not to the extent that was expected, but it sure looks like it worked to me (as I sit, cradling a beer, filling out job applications).
Sources:
Let's not forget Romney's position on economic stimulus in January 2009:
ReplyDeleteBLITZER: He's [Obama] talking about a $750 billion economic stimulus package. He wants it to be passed as soon as possible. It's unclear if whether it can be passed before he's inaugurated on January 20th. What do you think about this proposal?
ROMNEY: Well, I frankly wish that the last Congress would have dealt with the stimulus issue and that the president could assign that before leaving office. I think there is need for economic stimulus. Americans have lost about $11 trillion in net worth. That translates into about $400 billion a year less spending that they'll be doing, and that's net of additional government programs like Medicaid and unemployment insurance. And government can help make that up in a very difficult time. And that's one of the reasons why I think a stimulus program is needed.
I'd move quickly. These are unusual times. But it has to be something which relieves pressure on middle-income families. I think a tax cut is necessary for them as well as for businesses that are growing. We'll be investing in infrastructure and in energy technologies. But let's not make this a Christmas tree of all of the favors for various politicians who have helped out the Obama campaign, giving them special projects.
So what did the ARRA end up looking like? Tax cuts aimed at businesses and middle class families, unemployment benefits, infrastructure spending, aid to prop up state and local budgets (so, Medicaid and education, mostly).
The guy is slippery as shit.