Stimulus FAIL: America Worse Off Now than Predicted
Via Greg Mankiw, some interesting insight on the effect stimulus measures have had on America - or rather, an enlightening peek at the reality of our predicament.
When the Obama stimulus plan was proposed, the president's economic team put out a report in January 2009 that purported to show what would happen with and without the fiscal stimulus. The chart above is from page four that report, together with the actual results over the past couple months. As you can see, the actual outcome is significantly worse than the projection with the stimulus plan and is, in fact, roughly on track with what was projected without the stimulus.
What does this mean? One interpretation is that the fiscal stimulus has failed to achieve what Team Obama thought it would. Another interpretation is that the baseline was worse than they believed at the time. I am confident the report authors would adopt the second interpretation.
Remember, too, that even these numbers are likely watered down through the magic of federal government interpretation. Encouraging news, eh kids?
So, uh, is there still a vacancy in Canada??