Thursday, February 2, 2012

Graphic Proof of the Impact of the Stimulus Program and the Fact That Keynesian Economics is Correct

Too Graphic for Conservatives to Watch – They Must be Accompanied by an Adult

One of the most strident statements that Conservatives make is that the President’s Stimulus Package of 2009 was a total failure and that it did not create or save a single job.  That’s because government policy cannot create jobs, or at least say the hundreds of far right politicians who have held government jobs for decades, and some for all of their adult working life (yes, we’re talking about you John McCain).

Jared Bernstein seems to always put together a nice set of graphics that show the real picture, and here is his graph of GDP growth prior to and after the enactment of the Stimulus plan in early 2009.  Notice that the impact was strong and immediate. 

And here is his chart showing employment gains and losses.  Notice also that the loss of jobs did not stop immediately.  It couldn’t American was too deep into a hold.  And finally notice the difference between the private sector and the public sector.  Yes, you are reading that correctly.  Government, whose policies are supposed to promote job creation is itself a destroyer of jobs.    Of course much of this is happening at the state and local level where Republicans have taken control. 

So the Republican plan is to cut jobs in government and then blame the President for the job losses. And guess what, the plan is working.  Nice going people.

1 comment:

  1. If you think that a stimulus bill can have a strong and immediate impact, I suggest you go back and read your Keynes