Sunday 1 November 2009

Stimulus Fuelled Much of Expansion –- Wall Street Journal

Oh, how it must have pained Rupert Murdoch to see that headline in his paper! The article said “the U.S. economy would have turned in a far worse performance in the third quarter without help from the federal government. “ And they also had to admit that cash for clunkers caused a one-point jump in GDP growth, and another half-point came from home building, caused by the government efforts to push down mortgage rates, slow down foreclosures, and give tax credits to home buyers. Meanwhile a USA Today survey of America’s states shows that Obama has already saved or created at least 388,000 jobs with the stimulus, and that’s based on only 33 states. And according to the CEA estimate, the total is around 600,000 to a million; the biggest impact was among teachers. Two thirds of Americans say our economic problems were Bush’s fault. And Obama has found another way to help the long-term economic prospects without having to tangle with the obstructionists in Congress: he is spending 3 billion in stimulus money to help build a new smart grid for energy delivery.

The Republicans dreamed they would win back power in 2010 by scaring people about health reform an the economy. But they are losing the public on both fronts, and getting embarrassed daily by the wingnut half of their own party.

Oh happy day.

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