Why Has the Obama Stimulus Failed?

Discussion in 'Politics' started by Revmitchell, Jul 3, 2010.

  1. Revmitchell

    Revmitchell
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    The centerpiece of Obama’s short-term stimulus program was $862 billion in poorly targeted tax cuts and ineffectual spending increases he signed into law in February 2009, since supplemented by a number of smaller budget-busting “jobs” bills. Obama had one big shot at really helping the economy and he took it, holding nothing back. As short-term economic stimulus, it was doomed from the outset because it was based on the erroneous assumption that deficit spending can increase total demand in a slack economy.

    The theory underlying Obama’s stimulus is that the economy was weak because total demand was too low. The suggested solution is then to increase demand by increasing government spending, exploding the deficit in the process.

    This theory of demand manipulation through deficit spending ignores the simplest of realities: Government spending must be financed. So to finance deficit spending, government must borrow from private markets, thereby reducing private demand by the same amount as deficit spending increases public demand.[5] In effect, the theory says that if I take a dollar from my right pocket and put it my left, then I am a dollar richer. No wonder it always fails.


    [5]See J. D. Foster, “Keynesian Fiscal Stimulus Policies Stimulate Debt—Not the Economy,” Heritage Foundation Backgrounder No. 2302, July 27, 2009, at http://www.heritage.org/Research/Economy/bg2302.cfm

    More Here
     
  2. KenH

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    Yes, it has failed.
     
  3. Deacon

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    It indebted the U.S. to an aggressive foreign power, decreasing China’s eagerness to destroy the U.S. economicly (in fact they’re quite concerned that we’re destroying it ourselves).

    The stimulus increased the number of people dependent upon the government, an attempt to tip the scale toward a popular socialist agenda.

    Rob
     
  4. AresMan

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    The "stimulus" failed just like ALL "stimulus" fails. "Stimulus" from central economic planning causes moral hazard. It provides incentives for people to ration their money irrationally (;)) on goods or services that otherwise would be counterproductive or exuberant. It interferes with the normal rationale of the market of people voluntarily making mutual exchanges for the benefit of the marginal utility of both parties by favoring one party at the expense of the other.

    Economic stimuli inflate bubbles that must burst so that things can, with pain, return to normal.
     
  5. Baptist Believer

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    It really doesn't take much intelligence to figure out that if consumers and private businesses/industry are having financial trouble because the credit market has dried up, the last thing you want to do is have the U.S. government competing against your own citizens and businesses for unprecedented amounts of credit to spend on temporary measures.

    If the government had a large surplus of cash in the coffers (that's a fantasy), then government spending on infrastructure would be a massive benefit to the population and would help bring recovery very quickly.

    The problem with many of our Washington leaders is that they have learned lots of economic theory (some of it very good), but they aren't dealing with the realities of our current economic situation.

    By their actions, they have taken a bad situation and made it much worse. I think history will record that the Obama administration's economic leadership was a major disaster for the nation and the broader world.
     
  6. Robert Snow

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    First, I don't think the stimulus effort has failed. The biggest problem has been the republicans doing all they can to sabotage everything this administration does. The idea is to do anything, regardless of consequence, to win back the Congress in 2010 and the White House in 2012. They don't care how much damage they do and how many people get hurt.
     
  7. targus

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    What is your evidence?
     
  8. Baptist Believer

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    Then why has our economy not improved?

    Where is the benefit for all of the hundreds of millions of dollars we have spent?

    Well politics has gotten in the way of doing the right thing for a long time. And Democrats are at least as guilty of this as Republicans.

    But if a representative of the people believes the Obama administration is doing the WRONG thing in regarding to handling our economic policy, shouldn't they try to do something about it? Didn't Democrats do the same thing with Bush?

    That's the nature of representative democracy.

    For those who think Obama's policies are devastating our economy, now and for the future, winning back seats in Congress and the White House is the sane and logical step for moving the country in a new direction.

    The Democrats pushed for this with their "Hope" and "Change" campaign. Why is it now bad for Republicans to pursue the same goals?

    The voters get to decide who they want to lead. Why is this a bad thing?

    Ah, now you've lapsed into demonizing those you don't agree with. This is not a logical argument of the facts... this is broad-brush character assassination.

    Christians should have no part of character assassination and should focus on the issues of how our government can best serve the people.
     
  9. Revmitchell

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    Why don't you give us some examples.
     
  10. sag38

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    Yes, I'd love to see these "examples" too.
     
  11. Robert Snow

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    I gave my opinion. It doesn't matter what else I say, and you know it. It will all be turned around anyway. Besides, you all know that we can both find article after article supporting any position we want. It's pointless, each side simply refuses to accept what the other says.

    I know that there is a feeling in the U.S. by many that Reagan was a great president, some may even say he was the best. But, then again, I know plenty of machinist who were very glad to see Reagan leave office. Maybe Reagan was good for some sectors of our economy, but he devastated the industry I was in at the time.

    Alright, it's your turn. Let the attacks begin!
     
  12. just-want-peace

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    Question!

    Yes, you gave your opinion, and you were asked for some FACTS to back up your opinion, and all you do is complain that you're gonna be attacked.:rolleyes:

    Should that be taken as evidence that you have no facts to bolster your opinion?? Or are you just practicing "OBAMANAMICS" by refusing to supply what you claim is real but will not, just because somebody may not like it, or it's going to be doubted anyway, or --???

    Amazing how some folks conjure up more doubts and questions by their side-stepping, (just like the zero) when the matter could (according to them anyway) be so easily defended!:sleep:

    (Considering the above, you are probably correct that you'll just be attacked - but you could choose to discuss rather than whine and the attacks may never materialize. The choice is yours!):thumbs:
     
  13. Revmitchell

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    It is easy to say you have that "opinion" but without facts to back up your "opinion", regardless of how many way facts can be interpreted, then your words appear to be nothing more than an attack on those with views opposing your fave politician.

    My opinion is you do not really have that opinion. You just wanted to attack conservatives. The facts are that you have no facts to back up your "opinion" and then you throw in the disingenuous "Let the attacks begin". That is not even honest. It is nothing more than a very poor attempt to characterize those who oppose your dishonest posts in advance.
     
    #13 Revmitchell, Jul 5, 2010
    Last edited by a moderator: Jul 5, 2010
  14. carpro

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    Good responses, BB.
     
  15. Robert Snow

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    See, I told you. Now, while you all have been typing away to doing exactly what I said you would do, I have been enjoying some time at home. :laugh:
     
  16. targus

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    You told us what?

    I see no attacks...

    And I see nothing backing up your speculation that the stimulus did anything to improve the economy - if not making it even worse.
     
  17. Baptist Believer

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    Sure. But giving an opinion and not being willing to explain why you believe it doesn't make for a good conversation of the issues.

    If I said, "the color green is the best color in the spectrum, and anyone who doesn't think so is hateful", then I would be under more than a little obligation to respond to questions regarding that position if I wanted to be taken seriously on a discussion board.

    (FWIW, the best color is blue. If you don't understand that, there's little hope for you.) :wavey:

    Maybe, maybe not. I'm not beholden to either major party, so I'd be happy to agree with you if you could help me understand your position.

    Frankly, I'd love for the economic stimulus to have worked. Lots of people I know are unemployed right now, and I'm employed but hurting financially since all of my taxes are skyrocketing to make up for lost sales tax revenue. (Just my property taxes have gone up over $200/month over the last two years for a house that's not even 1,300 sf.)

    Forget articles... Just give me two or three areas of the economy that are booming (other than government employment) in a sustainable way and you will have given some credibility to your opinion.

    I don't usually accept things without evidence, especially when they contradict my experience. Provide some evidence and we'll see what happens.

    Sounds like a persecution complex.
     
  18. sag38

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    It's exactly as I figured and expected. Robert won't give an example because there aren't any. The stimulus package has cost billions and yet there's nothing to show for it except more bad news.
     
  19. Robert Snow

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    Yea, like you would ever concede that anything President Obama does is good. :tongue3:
     
  20. targus

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    Why is necessary for anyone here to concede that Obama has done anything good in order for you explain what the stimulus has done to support the economy?

    You keep posting - but never anything of substance.
     

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