Rupert Mudoch's Anti-American Fox News and Its Anti-American Team of Hacks Claim Stimulus Failed
Fox News' Stuart Varney is citing revisions to economic projections for 2012 to revive the myth that the 2009 stimulus failed. In fact, independent economists agree that the stimulus significantly raised employment and increased GDP, and experts say it is the winding down of stimulus spending that is causing a "fiscal drag" on the economy.
Fox's Stuart Varney: Unemployment Forecast Proves The Stimulus Failed
OMB: Unemployment Expected To Average 9 Percent In 2012. The White House Office of Management and Budget released its mid-session budget review on September 1, projecting that the average monthly unemployment rate in 2012 would be 9 percent. [Fiscal Year 2012 Mid-Session Review, Office of Management and Budget, 9/1/11]
Stuart Varney: OMB's Updated Forecast Proves That The Stimulus Failed. On Fox & Friends, Fox Business host Stuart Varney said:
VARNEY: Look, there's a lot of pressure on the president to come up with something big, bold and new come next Thursday evening. And there's a lot of skepticism that he can do it. Is he going to propose a brand new trillion dollar stimulus program? I mean, this forecast of nine percent unemployment is an admission that the first stimulus program did not work. [Fox News, Fox & Friends, 9/2/11]
But Economists Have Said It's A Decline In Stimulus Spending That Is Causing A "Fiscal Drag" On The Economy
CBO: 85 Percent Of Stimulus Funds Spent By End Of June. In its latest report on the effects of the American Recovery and Reinvestment Act, the Congressional Budget Office reported that 85 percent of the stimulus had been spent by the end of June 2011. [Congressional Budget Office, August 2011]
Krugman: "When The Spending Begins To Tail Off, The Effect On Growth Turns Negative." Paul Krugman, a Nobel prize winning economist and New York Times columnist, wrote in December 2009 that stimulus spending was projected to peak in 2010. He added:
And when the spending begins to tail off, the effect on growth turns negative. [The New York Times, The Conscience of a Liberal, 12/27/09]
Deutsche Bank: "As Stimulus Programs Wind Down" In 2011 "We'll Then Have A Straight Four Quarters Of Fiscal Drag." According to a November 2010, Business Insider report, Deutsche Bank projected that "the real effect of lost stimulus will start to hit" in the first quarter of 2011. The report continued:
We'll then have a straight four quarters of fiscal drag. [Business Insider, 11/5/10]
Mark Zandi: "The Benefit [Of The Stimulus] Is Fading, But This Is By Design." According to Talking Points Memo, Mark Zandi, Moody's chief economist, explained that the American Recovery and Reinvestment Act "was never intended to be a source of long-term economic growth," and that the stimulus provided "a significant benefit to the economy's performance over the past more than two years." Zandi added:
This benefit is fading, but this is by design. [Talking Points Memo, 7/5/11]
The fact is ( facts are terrible things thus Fox does not report them) Obama and Democrats stopped the economy from hemorrhaging jobs.
Conservatives are always prattling on about how they are for freedom. This is just a recent example of a Conservative being honest about what he thinks of one of the fundamental elements of freedom in the USA. Freedom is for the select few - Columnist: Registering Poor To Vote 'Like Handing Out Burglary Tools To Criminals'