Why The Stimulus Didn't Work (Hint: It's not Obama's fault)

  • Posted by a hidden member.
    Log in to view his profile

    Mar 22, 2011 5:00 PM GMT
    Interesting view on how the big cuts in state spending basically absorbed any impact that the federal stimulus would had.

    Kevin DrumWhy did the 2009 stimulus package produce such meager results? Partly because the recession turned out to be worse than Obama's team thought, and partly because they didn't press for a big enough package even for the recession they thought we had. But another reason is that at the same time the feds were spending more money, state governments were cutting back. The chart below from CBPP tells the story. They have data for all but six states, and on average for 2012, "those 44 states plan to spend 9.4 percent less than their states spent before the recession, adjusted for inflation." That's not just less than last year, it's less than 2008. That wiped out nearly the entire effect of the federal stimulus pacakge.


    blog_state_spending_cbpp.jpg
  • Posted by a hidden member.
    Log in to view his profile

    Mar 22, 2011 5:06 PM GMT
    Christian73 saidInteresting view on how the big cuts in state spending basically absorbed any impact that the federal stimulus would had.

    Kevin DrumWhy did the 2009 stimulus package produce such meager results? Partly because the recession turned out to be worse than Obama's team thought, and partly because they didn't press for a big enough package even for the recession they thought we had. But another reason is that at the same time the feds were spending more money, state governments were cutting back. The chart below from CBPP tells the story. They have data for all but six states, and on average for 2012, "those 44 states plan to spend 9.4 percent less than their states spent before the recession, adjusted for inflation." That's not just less than last year, it's less than 2008. That wiped out nearly the entire effect of the federal stimulus pacakge.


    blog_state_spending_cbpp.jpg
    Wow.. you must have researched all the same things I did last night!
    And ALL 50 states are projecting a buget gap for 12-13.. I wonder why that is? Can we say serious recession and lack of tax base for revenue?
  • Posted by a hidden member.
    Log in to view his profile

    Mar 22, 2011 6:32 PM GMT
    How many threads have SB started with:
    *[fact/poll/opinion/rumor]*Obama*[some kind of badness even if he has nothing to blame for it]*.mp4

    that prompted you to post this one, Christian? lol
  • Posted by a hidden member.
    Log in to view his profile

    Mar 22, 2011 6:45 PM GMT
    Christian73 saidInteresting view on how the big cuts in state spending basically absorbed any impact that the federal stimulus would had.

    Kevin DrumWhy did the 2009 stimulus package produce such meager results? Partly because the recession turned out to be worse than Obama's team thought, and partly because they didn't press for a big enough package even for the recession they thought we had. But another reason is that at the same time the feds were spending more money, state governments were cutting back. The chart below from CBPP tells the story. They have data for all but six states, and on average for 2012, "those 44 states plan to spend 9.4 percent less than their states spent before the recession, adjusted for inflation." That's not just less than last year, it's less than 2008. That wiped out nearly the entire effect of the federal stimulus pacakge.


    blog_state_spending_cbpp.jpg


    Not sure if you had an opportunity to review the source of the study. (I believe you may have forgotten to link it:
    http://www.cbpp.org/cms/index.cfm?fa=view&id=3389
    http://motherjones.com/kevin-drum/2011/03/chart-day-why-stimulus-didnt-work

    But here are the authors:
    - Michael Leachman: Earlier in his career, Leachman worked as a community organizer in Chicago and, during graduate school, conducted a range of research projects in collaboration with community organizations. Leachman holds a Ph.D. in sociology from Loyola University Chicago.
    - Erica Williams: Williams holds a B.A. in Sociology and Spanish Studies from Santa Clara University and an M.A. in International Policy the Monterey Institute of International Studies.
    - Nicholas Johnson. Johnson holds a graduate degree from Duke University's Terry Sanford Institute of Public Policy.

    It may have been helpful had there been at least one economist to lend credence to their findings as I'm sure you'll agree. I'm curious if you have the numbers. It's a curious claim they make. How much was the stimulus and how much was the decrease in spending at the state level in actual dollar amounts?
  • Posted by a hidden member.
    Log in to view his profile

    Mar 22, 2011 7:00 PM GMT
    q1w2e3 saidHow many threads have SB started with:
    *[fact/poll/opinion/rumor]*Obama*[some kind of badness even if he has nothing to blame for it]*.mp4

    that prompted you to post this one, Christian? lol


    Something like that... icon_lol.gif

    In general, though, it's just that these are incredibly complex issues that don't get treated that way, either on here or in the media.