Saturday, July 4, 2009

Did Obama make the economy much worse?

A few months ago, Obama said that his economists analyzed the economy and decided that without the stimulus package, the unemployment will go up to 8.7%, with his stimulus package passed it would top at 7.9%. Today, we already see 9.4%, and it is especulated that unemployment will go above 10%.

Assuming that Obama hired the top economists, and their analysis AT THE TIME was correct, we can conclude that Obama's policies added 2.1% unemployment.

Of course, one could say that Obama's economists are idiots, who could easily miss a 25% increase in the number of unemployed - but then, who hired them? One could also claim that Obama knew the real numbers, but he lied so his programs could pass. That's another view.

BTW, in my posts on Slate, months and months ago I predicted 10% unemployment. I wonder if I am better than Obama's economists. I also wonder why right-wingers were able to predict that Obama would try to raise taxes on the middle class. I mean, the guy swore on his mother's grave that he won't do so. How coud they know? It's magic, I tell you.

1 comment:

Anonymous said...

Unemployment passsed 10% in May. The Dpt of Labor used the "seasonal adjustments" to back it back down. They can do that for another month or so, but by September when all the kids go back to school and they have to drop adjusting for 'summer jobs', there will be a big jump in the Unemployment rate. Keep in mind the Unemployment is a lagging indicator. That means it tells you what has happen, not what will happen.
It has been proven MANY times that you cannot spend your way out of a depression by printing money to fund make work jobs. Google Weimar Republic and Hyperinflation.