$787 Billion Doesn’t Buy Very Much These Days April 24, 2009Posted by geoff in News.
The Labor Department released its latest employment figures, prompting some fairly dire projections from economists:
Worse-than-expected news on unemployment and home sales Thursday dampened optimism that a broad economic recovery might be near.
Many analysts don’t expect the housing slide to show signs of stabilizing until the second half of this year. They said layoffs may be at their high point, but that the jobless rate, already at a 25-year high, will keep rising until the middle of 2010.
Rise until 2010? RISE UNTIL 2010?
That can’t be – Obama’s economic team promised us that if we passed the stimulus package, unemployment would start dropping by July 1st! In fact, they even made a graph to show us how wonderful the stimulus package was going to be:
See? SEE? The unemployment rate was never supposed to go over 8%. But when you compare projections to the actual unemployment results (the triangles in maroon), the actual data doesn’t seem to follow the “With Recovery Plan” curve.
In a stunning surprise, the data does follow the curve projected by the GOP and the conservative punditry, who said there would be no near-term benefit from the stimulus package. Now the economists are saying that the unemployment rate won’t start dropping until the middle of 2010. Gee, that’s when it would have started dropping if we had done nothing.
I know we all thought the stimulus package was not focused very well on near-term relief, but I don’t think anybody would have predicted that it would have absolutely no benefit 2 months after it had passed. …or more than a year after it had passed.