Rocky Vega

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.

Best,

Rocky Vega,
The Daily Reckoning

Rocky Vega

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.

  • tony bonn

    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….

  • BTH

    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.

Recent Articles

Extra!
Missing Money: What Government Accounting Really Looks Like

Jeff Desjardins

Everyone knows how comically terrible government accounting is, but few people may realize just how bad it's gotten... This infographic shows how trillions of dollars of government money has gone missing money over the last several years. And what's worse... that no one seems to care where it went...


Sage Advice for Bored Investors

Chris Mayer

It's amazing what some people will do out of sheer boredom. Investors, for example, will often throw money around, simply because they have nothing better to do - as if making MORE moves automatically translates to MORE money. Today, Chris Mayer explains why this emotion is so dangerous and how staving it off can save you a ton of money...


The One Word Every IPO Investor Needs to Know

Jonas Elmerraji

When a big company IPOs, investors can hardly contain their excitement. In a flash of exuberance, they throw money at a company they've already decided is worth something... even if the market hasn't made up its mind yet. Today, Jonas Elmerraji explains how one simple word can change the fate of every IPO investor. Read on...


How to Escape Obamacare in One Bold Move

Chris Campbell

Think it's impossible to escape the throes of Obamacare? Think again. Today, Chris Campbell relays the story of one man was able to get out from under the (un)Affordable Care Act, and how you can do it too. Don't see another doctor, take another pill, or shop around for better medical insurance until you read his story...


Let the Alibaba IPO Show You Where the Market’s Headed

Greg Guenthner

For the last few days, the market has been buzzing with excitement over the Alibaba IPO. Well, the day is finally here. And while some investors line up with their lotto tickets, ready to snatch it up no matter what the price, Greg Guenthner suggests a slightly more restrained approach. Read on...