This news story should have come as a surprise, but it’s become easy to expect economists to change their minds after the facts contradict their earlier opinions. In that sense, few things seem as consistent as economists’ inconsistency.
After hearing them clamor so long for new stimulus and additional bailouts, we now hear they’ve changed their tune. The government-supplied “antidote” to the financial crisis was initially hailed as saving the nation, and perhaps the entire world, from depression. Now, a new survey of economists shows that they have actually decided, in looking back, that the whole stimulus basically wasn’t needed.
This from CNN/Money:
“In [the] latest quarterly survey by the National Association for Business Economics, the index that measures employment showed job growth for the first time in two years — but a majority of respondents felt the fiscal stimulus had no impact.
“NABE conducted the study by polling 68 of its members who work in economic roles at private-sector firms. About 73% of those surveyed said employment at their company is neither higher nor lower as a result of the $787 billion Recovery Act, which the White House’s Council of Economic Advisers says is on track to create or save 3.5 million jobs by the end of the year.
“That sentiment is shared for the recently passed $17.7 billion jobs bill that calls for tax breaks for businesses that hire and additional infrastructure spending. More than two-thirds of those polled believe the measure won’t affect payrolls, while 30% expect it to boost hiring ‘moderately.'”
According to this survey, not even economists believe in the stimulus charade. Or, in the jobs bill for that matter. The facts on the ground — at their very own firms — simply show otherwise. On the upside, if economists, of all people, are finally skeptical of printing our way to economic nirvana, then maybe there’s a chance that the meddling will slow.
You can read more details in CNN/Money’s coverage of how economists now say that the stimulus didn’t help.
Rocky Vega,The Daily Reckoning
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
oh come on now….stimulus spending is always de rigeur….the problem with the 17.7 billion usd jobs bill is the unit of measure…..of course a piddly 17.7 b usd will do nothing….but make it 17.7 trillion usd then we be talking stimulus….
In an interview with FactCheck.org, NABE spokeswoman Melissa Golding said to broadly declare the stimulus a failure based on the survey would be inaccurate. “We were asking them to measure the impact of the federal stimulus on their particular firm or industry,” she said. “It was very specific to their firm or industry.”
If you think about the design of the survey and compare it to this article, you will see the author of the CNN/Money misrepresented the results. And this author perpetuated and expanded upon this misrepresentation.
The 1st Amendment is an enormous responsibility. It only works if the Journalists live up to its standards.
The economist Milton Friedman didn’t go far enough when he said, “Concentrated power is not rendered harmless by the good intentions of those who create it.” Oftentimes, that power is rendered more harmful -- to the point of Hormegeddon -- the better the intentions behind it. In today's essay, Bill Bonner highlights the conditions necessary for popular delusions and the disasters they lead to. Read on...
Right now, health care makes up about 25% of the federal budget. A scary statistic to be sure... But here's an even scarier one: health care's portion of the federal budget doubles roughly every 20 years. Yikes! Addison Wiggin explains why this is and what needs to change to prevent health care from taking up half the federal budget. Read on...
Is your government too big? Find out in today’s Laissez Faire Today with six “red flags” to look out for. Chris Campbell covers everything from one ObamaCare whistleblower to the strange case of our new Ebola czar. Read on…
McDonalds stock is getting crushed right now. Shares have been in a tailspin since June. But it’s not just Mickey Dee’s. Coca Cola shares are in freefall, too. Bad news for them. But if you want to rake in a pile of easy money, it could be great news for you. See, Americans just aren’t choking down this junk like they used to. The fast food burger, fries and a Coke are just down payments on an early coronary - and Type II diabetes. And everyone’s finally gotten the message. So how can you play the trend? Greg Guenthner explains…
Panopticon goggles? Severe market panic in 2018? Gold confiscation by 2020? Jim Rickards' shocking thought-piece in the spirit of A Brave New World or 1984. Click to see how markets, economics, your money, gold, privacy, wealth building and more look a decade from now in the year 2024...