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Killing A Meme At Birth


0bama will claim that his stimulus headed off "A Second Great Depression."

Like so many things he says, it's just not so.  IBD provides the details:

Did Obama Really Prevent A Second Great Depression?

By JOHN MERLINE, INVESTOR'S BUSINESS DAILY

It has become a common refrain at the White House and among administration supporters that President Obama's aggressive efforts to stimulate growth prevented an economic catastrophe.

"We had to hit the ground running and do everything we could to prevent a second Great Depression," Obama told supporters last week.

Politically, the claim makes sense. Casting the challenge Obama faced as immense can help explain the economy's lackluster performance in the two years since the recession officially ended.

But is it an accurate portrayal of what really happened?

IBD reviewed records of economic forecasts made just before Obama signed the stimulus bill into law, as well as economic data and monthly stimulus spending data from around that time, and reviews of the stimulus bill itself.

The conclusion is that in claiming to have staved off a Depression, the White House and its supporters seem to be engaging in a bit of historical revisionism.


I'm shocked, shocked, to hear that the President and his supporters are playng fast and loose with the truth.

Hat Tip: Glenn "Instapundit" Reynolds who comments:

In fact, it [the economy] did worse with the stimulus than they predicted it would do without a stimulus, but I don't think this helps the White House's case.
No, no it does not.



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Comments (17)

Obama's been claiming that ... (Below threshold)
Hank:

Obama's been claiming that for a while, that he prevented a second depression.

As with that absurd phrase, "jobs created or saved", it allows him to take credit for things that cannot be measured or proven.

I suppose we should cut him some slack. After all, he really doesn't have much to campaign on if facts are used. And the man has shown repeatedly, he'll say/read anything whether or not it's grounded in reality.

As with that absurd phra... (Below threshold)
jim m:

As with that absurd phrase, "jobs created or saved", it allows him to take credit for things that cannot be measured or proven.

Sure. obama has claimed to have saved jobs from nonexistent congressional districts.

This claim will look a lot less convincing (is that possible?) when we get the double dip recession with rampant inflation.

Barry is the great depressi... (Below threshold)
Sep14:

Barry is the great depression.

And here I was und... (Below threshold)
irongrampa:


And here I was under the impression that he merely prolonged the first one.


Tsk.

So the stimulus that Paul K... (Below threshold)
jim m:

So the stimulus that Paul Krugman is on record saying that it was too small to have the effect that we needed is successful at saving the economy when only 15% of it was spent by the time he admin claims the recession ended?

Talk about having it both ways: It was an unqualified success AND it was to small to have an effect.

If only FDR had known endin... (Below threshold)
Sep14:

If only FDR had known ending a depression was as easy as playing golf?

Why hasn't the RNC responde... (Below threshold)

Why hasn't the RNC responded to the 'Paul Ryan pushing an old lady off a cliff' ad with ad showing Obama, Pelosi, and Reid impersonators pushing a child in a stroller off a cliff?

Whoa... so now we are ackno... (Below threshold)
Josie:

Whoa... so now we are acknowledging that the recession actually ended two years ago ie the economy has been growing for 2 years straight?!?! Better tell that to our candidates.

Between the "stimulus" and ... (Below threshold)
Caesar Augustus:

Between the "stimulus" and the Fed's QE programs the government has thrown around 2 trillion dollars at the economy over the past two years, yet the total workforce is much lower today than it was when Obama took office and will be headed lower still over the next 12-16 months. Ergo the labor market has gotten worse and the national debt and deficit pictures simultaneously have gotten much worse.

Proving yet again that while Keynesian policies might sound real "cool" in economics classes on college campuses out in the real world they don't actually work so well.

If only FDR had known en... (Below threshold)
jim m:

If only FDR had known ending a depression was as easy as playing golf?

Given that FDR couldn't walk, having had polio, I'm guessing that playing golf wouldn't have been any easier for him.

Sit back and relax. After ... (Below threshold)
GarandFan:

Sit back and relax. After all, this is the first day of the "Second Summer of Wreckovery".

It's official. Obama owns t... (Below threshold)
WildWillie:

It's official. Obama owns the economy. The DNC Chair prognosticator said so.

Sept.14, you crack me up. That was funny.

There is no way you can prove the stimulus did anything except make certain indicators actually go up, like unemployment, the debt, etc. What a bozo. The left must really be perplexed but just can't say so. They do not practice free speech in the Dem party. ww

"Saved or created" is a mis... (Below threshold)
Jim Addison:

"Saved or created" is a misleading way of saying, "I just made that number up out of thin air." But the Obama Regime is built on lies and deceit, so we shouldn't expect any better.

Even the White House acknowledges the joke about "saved or created" in the transcript from last night:

Over the last 15 months we’ve created over 2.1 million private sector jobs. (Laughter.)

This was a DNC event, a fundraiser, so this means even people willing to give Obama money know he's full of it. Link to official transcript here: http://tinyurl.com/3h9oyoj

It has delayed the worst ... (Below threshold)
Will:

It has delayed the worst of a painful and necessary correction in both public and private debt markets. It has given the worst offenders who abused those markets (hand picked for rescue), the time and the means to survive such a correction with a strong portion of their wealth and power intact. It has destroyed the value of savings and increased those dependent on Government. The next neat trick will be to relinquish just enough power, at just the right time, to blame the next decade(or two)of pain on someone else (a time honored tradition).

Jim A., while I understand ... (Below threshold)
Upset Old Guy:

Jim A., while I understand and agree with what you said, that "SAVED or created" statement might be pretty accurate... as in" I haven't seen or heard of any layoffs in the public sector. If we extrapolate a number for public sector employees that would have been laid off without all those stimulus dollars (based on the percentage of layoffs in the private sector) Barry might be in the ballpark.

I haven't heard of so much as a teacher's aide being laid off where I live. The feds and the state governments have been happily sucking every dollar possible out the the economy. Dollars that could have been engaged in the private sector where capitol formation actually takes place. But he sure did SAVE those jobs... meaningless as they are to the economy.

"Given that FDR couldn't wa... (Below threshold)
Sep14:

"Given that FDR couldn't walk, having had polio, I'm guessing that playing golf wouldn't have been any easier for him."


Tell it to Barry! He dug us out of a depression and he swears by it.

So the stimulus th... (Below threshold)
So the stimulus that Paul Krugman is on record saying that it was too small to have the effect that we needed is successful at saving the economy when only 15% of it was spent by the time he admin claims the recession ended?

Krugman didn't claim it was too small to save the economy. As I recall, he claimed it was too small to completely bounce us back. Effectively, enough to stop the rush towards the cliff - just not enough to completely put us back on the road.

For what that's worth.




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