Over Stimulation for the US Economy?

Monday, August 31, 2009 , , , 0 Comments

Yeah ok, I buy that. At least we can start putting away that whole "2nd stimulus" bullshit. I hope.


The U.S. economy does not need a second fiscal stimulus package, instead the government should cut spending over the next two years, according to a survey of business economists released on Monday.

Most economists in the National Association for Business Economics (NABE) semi-annual poll were concerned about the outlook for the U.S. government budget. Also, they doubted health-care reforms proposed by the Obama administration would lower costs while increasing access and maintaining quality.

"This is one of the fastest-moving and most controversial economic policy environments we have experienced in a generation," said NABE president Chris Varvares. "The more vexing policy challenges about which there is less agreement are federal health-care ... budget policies."

The government early this year stepped in with a $787 billion package of spending and tax cuts to break the worst recession since the Great Depression of the 1930s. Separately, it bailed out banks to prevent the financial system from collapsing.

Those actions left the economy saddled with a $1.58 trillion budget deficit in fiscal 2009, and a shortfall of about $9 trillion between 2010 and 2019.

The ballooning budget deficit is causing alarm and feeding into opposition to President Barack Obama's central policy priority of overhauling the U.S. health-care system, whose price tag is $1 trillion.

While economists in the NABE survey acknowledged that the stimulus package had helped to brake the pace of the economy's decline in the second quarter, only 35 percent viewed fiscal policy as being "about right".

Half of the respondents saw fiscal policy as too stimulative. About 266 members took part in the poll which was conducted between August 3-18. The U.S. economy contracted at a 1.0 percent annual rate in the second quarter after collapsing 6.4 percent in the first three months of the year.

"Too stimulative" LMAO. Like all those bazillions of jobs that were saved or created as a result? Or the sustainable projects funded by stimulus funny money? Oh wait... none of that happened.

I know when I get overstimulated I need a nap and maybe a nice cuddle. Perhaps the US economy can do the same once it's done convulsing on the floor. Just a suggestion.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.