Has the Stimulus Worked?

[Clyde]

Its been a few months, almost a year I guess, since the stimulus money was doled out.

 

Has it worked? Do you believe the economy is better and that people have benefitted?

[Lucky Charms]

No and no.

[GaViking]

No, I don't see an improvement in the economy or new jobs, unless you are talking Kroger's or Skyline. Unemployment is still high in NKY.

[rockmom]

Its been a few months, almost a year I guess, since the stimulus money was doled out.

 

Has it worked? Do you believe the economy is better and that people have benefitted?

 

I guess my thoughts are these:

 

I think that some positives can be seen. Here in Louisville, several projects are about to get underway that are a result of the stimulus money. The caveat is that most people on this board would eschew the projects. :lol:

 

I think that the economy is getting better. But to think it's recovered, or would recover in much less time than it took to tank was and is unrealistic.

 

I think that whether people have benefitted or not rather subjetive to answer. I'd say that there are those who have benefitted, those for which circumstances are relatively unchanged and those for whom it's gotten worse.

 

From my personal perspective, where I work, things are tough. However, although well down from last year, and not a direct recepient of any stimulus money (:lol:), the economic challenges have forced us to take a long hard look at how we do business. And we're actually in a very good position, relatively speaking. Not only in what we contract, but in how we manage our expenses, etc. We just had a meeting about it yesterday. There were some impressive, creative savings this year. In the long run, we are in a much better position by changing some philosophies.

 

As far as my personal economic situation, there have been no raises, no bonuses. However, nothing much has changed, because I have not had a pay cut, or lost my job. Both blessings, and I consider myself a lucky person. Not much really changed, as I already live a pretty scaled-down life by most definitions. :lol:

 

My daughter's job is with an automotive group. Last fall we were sick with worry about her losing her job. She'd just been promoted to a new department, and sales started sliding south. However, with the economic downturn hitting the automotive industry especially hard, her department was the ONLY department that actually hired people. They've been extraordinarly busy since last fall. She got a raise recently, so I think things are better for her.

 

My son had a really hard time getting the last of his school covered this year, because of the tightened credit. However, he was able to eventually get it all taken care of. He was able to get a great job this summer, and it's stable, which I count as a positive sign that the economy isn't still on the downturn, as his job is a discretionary expense for most.

 

My son's fiancee got a great job recently, but had to wait until right before school started to get the offers, as teachers in the school system didn't retire in the numbers expected.

 

A lot has to do with one's own personal agressiveness in fighting the downturn, and being willing to make the changes necessary to not suffer. Sometimes it's not enough to have been proactive before the crisis. You have to be creative and realistic about how you live while the economy is struggling.

[Clyde]

WSJ says its been effective.

 

http://online.wsj.com/article/SB125185379218478087.html

 

Agree?

[stick1]

I thought we were supposed to get a stimulus check when Obama took office? What happened with that one anybody know?

[titletownclown]

Some proponents of the stimulus argue that the funds have helped to save jobs that would have otherwise been lost without help from the stimulus funds. This claim is a bit nebulous in that it is somewhat immeasurable. Have jobs been saved because of the stimulus? Probably. How many have been saved? Probably hard to tell.

 

The economy is FINALLY starting to recover according to most economists. The recovery is surely a product of several factors: government sponsored incentives, cheap money, increases in worldwide demand for goods and services and the infusion of stimulus funds into the American economy.

 

The long-term effect on the dollar as a result of this "stimulus" is yet to be determined.

[woodsrider]

I have an August sales report that says no. My company has customers in almost any industry you can think of and sales have not better and aren't expected to get better.

[shooter]

WSJ says its been effective.

 

http://online.wsj.com/article/SB125185379218478087.html

 

Agree?

 

If by "it" you mean the $758B stimulus bill, the WSJ bill didn't say that "it" was working. The WSJ said government intervention in the markets appears to have helped. However, government intervention is much more than just the stimulus bill. I believe that the fed loaning money to banks and the fed flooding the market with money has stabilized what was an precarious situation so that has been beneficial. But stabilization is not growth.

 

Also, the stimulus package has had very little impact partially because most of the money hasn't even been spent yet and partially because most of the programs aren't very stimulative. But I am willing to say that "it" worked if that means we cancel spending the approximately $500B of the stimulus bill that hasn't been spent.

[Hearsay]

No, but it does not matter whether it ACTUALLY has or not. The President's people will declare that it has, and the drooling monodrones who follow will nod their heads and then turn Nancy Grace and Oprah back on.

[Clyde]

If by "it" you mean the $758B stimulus bill, the WSJ bill didn't say that "it" was working. The WSJ said government intervention in the markets appears to have helped. However, government intervention is much more than just the stimulus bill. I believe that the fed loaning money to banks and the fed flooding the market with money has stabilized what was an precarious situation so that has been beneficial. But stabilization is not growth.

 

Also, the stimulus package has had very little impact partially because most of the money hasn't even been spent yet and partially because most of the programs aren't very stimulative. But I am willing to say that "it" worked if that means we cancel spending the approximately $500B of the stimulus bill that hasn't been spent.

 

Fair enough.

[Clyde]

No, but it does not matter whether it ACTUALLY has or not. The President's people will declare that it has, and the drooling monodrones who follow will nod their heads and then turn Nancy Grace and Oprah back on.

 

Which part of this do you disagree with?

 

Economists say the money out the door -- combined with the expectation of additional funds flowing soon -- is fueling growth above where it would have been without any government action.

 

Many forecasters say stimulus spending is adding two to three percentage points to economic growth in the second and third quarters, when measured at an annual rate. The impact in the second quarter, calculated by analyzing how the extra funds flowing into the economy boost consumption, investment and spending, helped slow the rate of decline and will lay the groundwork for positive growth in the third quarter -- something that seemed almost implausible just a few months ago. Some economists say the 1% contraction in the second quarter would have been far worse, possibly as much as 3.2%, if not for the stimulus.

[cch5432]

It doesn't matter- at some point, something is going to have to be done to fix that deficit, and they are going to do it by printing more money, which will cause problems. Where did the money come from?

[Clyde]

It doesn't matter- at some point, something is going to have to be done to fix that deficit, and they are going to do it by printing more money, which will cause problems. Where did the money come from?

 

Are you of the belief that no matter what the immediate benefit is or may be that if there is a negative long-term national debt scenario that you do not take that trade?

[letabrotherspeak]

I think the banks have been very key and going all the way back to TARP under Bush and continuing through Obama may have had a bigger impact.

The stimulus itself is a boondoggle in my opinion and is nothing but short term. Many car companies are not getting there money from the "Cash for Clunkers" and it stimulated growth for Ford and Toyota...not much help for GM.

States are still in really bad shape I think they could have diverted more funds to help states and maybe with fewer strings attached because many state are turning down funds because in the end it hurts them more than helps them.

 

Schools have been receiving money from stimulus funds but not to hire teachers, but to be used for professional development and in a form to be used to purchase technology.