This blog is for discussing issues in our complex global economy.
Is the stimulus working. Here is CNN Money’s opinion.
The economy is a complicated thing, and employment one of the most complex aspects of it. Nevertheless, people insist on trying to view it in simple terms such as “jobs created or saved.” There are a number of problems with this approach.
First, as the article rightly points out that the number of jobs “created or saved” depends almost entirely on the metrics applied. How does one designate a job as “saved” anyway?
Second, traditionally, jobs have recovered from a recession more or less in step with the recovery of other sectors of the economy, such as the financial sector. However, the recovery from the last major recession was a major exception to this, leading to the term “jobless recovery.” This recession appears to be behaving similarly. If employment seriously lags other financial indicators in recovering, then the only judgment that could be valid is Summers’s that we are not losing jobs at the same pace, which is not at all the same as claiming that a million jobs have been “created or saved.”
Third, even if jobs were to recover fairly quickly, this has been a severe enough downturn that it is unrealistic to expect a job recovery in less than a year after the stimulus was enacted, especially given that the majority of stimulus action is just now kicking in.
Having said all that, I do believe the stimulus was the right idea and will result in recovery eventually. Sadly, whatever the GOP leadership might be correct on, I cannot credit them with any astute analysis. The Republican leadership has ceased to base its statements on real thought or analysis and fallen to little more than naysaying and obstructionism. This is a true shame, as actual balance in the political domain can be extremely valuable in times of crisis.
Yes, i think in some ways it is, just remember things have to get worst before they can get better.
I do believe that Obama’s stimulus plan has created jobs, I think the republicans are just out to get Obama, because he’s a democrat. While agreeing with this article, the only thing I dislike is that the count for creating/saving jobs is only for direct jobs. For example, the seasonal jobs, people are still making money, it still counts as a job, so why doesn’t it count for the direct jobs?
I am still kinda on the fence of whether or not Obama’s stimulus plan has helped or not but i am leaning more towards yes. I hope my feelings are right because i don’t know how much more people can handle the unemployment rate. Hopefully the unemployment rate with start to decrease after it has been increasing so long. I also hope it gets better especially by the time i graduate good thing i am only a sophomore and have a couple years left.
it seems to me that the stimulus plans are creating more jobs. as others have already mentioned, things will get better before they get worse. i fully agree that as the economy as a whole rises, the unemployment rate will drop. i don’t really see why people are making it seem like a negative thing, it doesn’t seem like the stimulus plans are causing the unemployment rate to rise.
I have forgotten where the stimulus money came from. It appears that about half has been spent at this point nation wide. The article stated that the government wants business to step up their hiring, but they need to have a market for their product or services. If other businesses are not in a postion to expand then if seems to be kind of a stand off. If the economy starts to rise, unemployment will drop but I think we cannot expect such a quick turn around. By closing businesses like NUMMI, all of those employees need to look for jobs with their particular skill set. This stimulus money doesn’t take into account those businesses that need employees with certain types of training. A car mechanic is not going to hired by an accounting company. I don’t know how all of these different areas will be addressed in the future.
Will people every see the glass half full. I do think that we need to make more jobs available for the unemployed. But with the unofficial word about how many jobs have been made from the stimulus package why can’t you take that for what it’s worth? Even though there is no official number why can’t we take into account the number of jobs that the states are saying were saved and created? No one looks at the 10% unemployment rate and asks, man well if it weren’t for the jobs that the stimulus made available think about how much higher it would be! People want quick fixes and they want them to be big. It took us a while to get here so I believe it will take us even longer to get ourselves out of the whole, but be thankful of the progress we have made!
Regardless of whether or not the stimulus bill is creating jobs, I think that responding to our current economic problems in any way was better than doing nothing. The government, economists, big business, etc. all knew we entering or already in a big and unique financial mess. Not acting on it could have made it even worse. For instance, in the article I noticed that state evaluations also reported on jobs that were saved because of the stimulus. If the information from these reports is true, without it they would have contributed to a unemployment rate that’s been growing anyway, leading to even more problems in other areas of the economy. Imagine if it we had waited further. The problem I see here is that people are becoming too impatient with the stimulus bill and want to see results immediately. Since this is becoming a very unique situation for the country, it may be better to be very careful with how people and the government respond to it. It is already costing us too much to let another fatal misstep happen without dwelling on it first.
I think that although we haven’t seen any more jobs, the fact that we haven’t lost any more either is a good thing. If a very heavy rock fell off the side of a cliff, A) It would be hard to stop and B) It’s gonna take alot longer to get it back up there than it took to fall to that spot. I don’t know if Obama is really all we need anymore I am a democrat that took big part in this last election, and honestly I can’t wait till next year when I can vote some of these democrats out of congress. I hope to see the employment rate rise again, our country is hurtin’.
States using the stimulus money shows that they are saving or creating jobs. There has been a lot of good signs for the economy lately. Let’s just hope they can string together a few more and pull us out of this. I truly hope Obama’s plan works.
The stimulus plan has created jobs which have been benefinicial, but the unemployment rate in our country is still very high. The article brings about many points including the economy is turning around, “the number of jobs lost in the third quarter averaged 256,000 per month, two-thirds less than the country sustained at the beginning of the year.” There are still thousands of people jobless in America, but this is a good start and surely appreciated by the many people who gained jobs through this stimulus bill.
I am not sure how effective this stimulus plan has been. There has definitely been some good things coming out of it. The unemployment rate has now decreased and jobs are being given by many companies. It is a great start. But as far as the plan it self it is hard to say. The media may put out numbers and statistics on how well the plan has benefited the economy overall but we will never really know where exactly all this money is going to. Then again, we can not expect to see results immediately, bringing an economy that is in a recession back to where it was is hard to do in just a couple of months and even a couple of years. It takes a lot of work and patience. We won’t really get to see the results of this plan until later, and hopefully we will have some positive results.
i really hope this stimulus helps. im glad that so many jobs have been saved but i definitely hope that the government can direct the money in the right direction to not only keep saving but keep creating jobs. our unemployment rate is really high right now and it is really noticeable that people are struggling for jobs. i only hope that this will help us in the near future and lower the rate of unemployment.
This stimulus helps abruptly in the construction of new jobs; however, we need to be careful how to use those stimulus. We create inflation whenever we make bad choices with the money that is provided by our government. I hope this stimulus worked for those who needed.
I think that this stimulus will help. It’s good that so many jobs have been saved but let’s cross our fingers and hope that the government can direct the money in the right direction, and save even more jobs. The unemployment rate in the U.S is still astronomically high and people are still struggling for jobs.
12.7 billion dollars should create a lot more than 100,000 jobs in my mind. This is what happens when money is doled out in large sums at one moment. I think the stimulus money would have worked a lot better if they had been divvied up and handed out over a period of say, a year. The states would use the money way more efficiently and some of the later allotments of stimulus might not even be needed
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