Washington Saved Our Economic Hide

http://www.realclearpolitics.com/articles/2010/08/19/washington_saved_our_economic_hide_106811.html

Washington Saved Our Economic Hide
By Froma Harrop


Clarence the angel has a tough job in "It's a Wonderful Life." He must show the suicidal George Bailey what terrible things would have happened had he not been born. Two prominent economists are playing Clarence to the multitudes who believe that forceful government intervention during the financial meltdown should never have been.

Using econometric models, Alan Blinder and Mark Zandi argue that the bailouts, the stimulus and other extraordinary actions saved America from nothing less than another Great Depression. Blinder was vice chairman of the Federal Reserve. Zandi is chief economist at Moody's Analytics and advised Republican presidential candidate John McCain.

Had Washington not taken any aggressive steps starting in 2008, the results would have been horrific, their study says. Real gross domestic product would have fallen a "stunning" 12 percent, rather than the actual decline of 4 percent. Nearly 17 million jobs would have vanished, twice as many as the real count. And the unemployment rate would have peaked at 16.5 percent.

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With no special government intervention, the 2010 deficit would have passed $2 trillion, according to their model. It would have reached $2.6 trillion in fiscal 2011 and $2.25 trillion in 2012.

Add outright deflation to the expected massive employment and falling GDP, Blinder and Zandi conclude, and "this dark scenario constitutes a 1930s-like depression."

Happily, government stepped in, and America bucked a catastrophe. How fortunate for us all that the tea party wasn't running Washington.

Is this not Wall Streeters saying that the bailout THEY got was good for me?

Instead of giving the bankers money, how about if a WPA program was instituted?

I ain't buying this.

They don't support a damn thing, and you think this would pass?

And don't forget Ben Nelson; he votes with the rethugs, so immediately cancel his vote out.

The stimulus should have been bigger but they wouldn't support that either.

Yea, reality sucks.

As it is, Americans across party lines are scratching their heads at the upper re-distribution of wealth. But I appreciate your consistent knee-jerk advocacy of the admin.

no rethug will support this, at least none I'm aware of.

And if you don't think this admin wants to promote and supply jobs if they could, then you're not living in reality. The economy is bringing the Dems down; people are angry and confused. I think they'd do whatever is feasible to correct the situation, but without support, it's tough. If you think this is a knee-jerk reaction, so be it. You can't answer the question, but you sure can criticize me for pointing out the obvious.

"or the idea that Dems (real ones) can't make hay out of such a refusal"

You bet people are upset. And you know the Blue Dogs are having a bit of trouble. I contend we could have made a splash with our triumvirate, out-voted the Thuglicans, and then sat back with a bowl of popcorn while the moderates and independents told the Baggers to STFU.

Ya know, govern.

member of Congress. The answer to your question is simple.

at least show some political courage and put it on the table

maybe Obama could even use some of that politicking skill of his and sell the idea to the American people

and tie it around their necks.

They'll say no so we won't try is not a winning strategy. Sometimes to win wars battles must be sacrificed.

Politics is the art of the possible not the easy.

This nation needs at least two trillion dollars of infrastructure investment simply to get the existing stuff to code. TO CODE...this isn't make work it is fundamentally vital to the function of commerce and the well being of our citizens.

Anybody that says no gets their state toured to highlight every decaying bridge and crumbling school while they have the culpability for every potential injury, death, and accident put around their neck like a noose, Democrat or Republican.

How are we supposed to compete with the world with our water, roads, sewer, power distribution, water lines, and internet saturation all rolling craps?

This is a battle you win if you relentlessly and ruthlessly fight it. Maybe not on the first try or the third. But if you keep the hammer falling the nail will be driven. This is an 80/20 issue or can be made one. There has been nothing like consistent messaging on this. Because it isn't a primary goal.

has actually done some good under the Obama admin? :nopity:

cause I think BHO has been woefully ineffective to date.

The fact that not enough was done should not confuse people on the point that what was done was vital

but instead are playing politics and making it seem like it's just a case of Overspending dems and blaming them for the lack of jobs instead of the policies of the past 30 years and the lax regulation and corporate ass kissing bush years that got us into this massive deficit. I HATE the refuklicans souless lying husks. BOners fake tan says it all.