Stimulus Package Performs

The lead article in today’s New York Times is titled, “New Consensus Views Stimulus as Worthy Step.” It describes the reaction of non-partisan analysts in evaluating the stimulus. They largely agree that the package worked well and that the unemployment rate would be even higher without it.

Though the Obama prediction of 8 percent unemployment was exceeded, these economists believe it could have been as high as 11 percent without it.  Plus the economy was in “free fall” when the package was enacted, and things have largely pulled back from the brink since then.

This is good news for the Obama administration currently mired in the health care debate. Republicans are accusing President Obama of focusing on the major item on his agenda, healthcare, as opposed to the major item on the agenda of the American people, jobs.

While economists feel that the stimulus package could have been more front-loaded to create more jobs, more quickly, perhaps through infrastructure projects or other forms of support that get spent immediately, such as food stamps or unemployment checks, it is always good to see a non-partisan group support President Obama, because these days he really needs it.

Side note: As I write this blog entry, the Democrats have just won the first test vote on healthcare in the U.S. Senate. Kudos, President Obama!