We were on the brink of collapse but after the Stimulus was passed, we began to have job growth again, causing the unemployment to drop over 2%, however this came at a huge price, 800 billion dollars. And although we aren't in the same situation we were in during 2008-2009, the unemployment rate has not budged and has remained at 7.8-7.9%.
The reasoning behind the stimulus was Keynesian economic theory; the private sector was reducing spending and to stop and reverse negative growth in economic growth and jobs. Public spending would accomplish this. Unfortunately, as many have noted, the stimulus was was too small to bring back full employment. This was for two reasons; first, most dire, the severity of the Great Recession was underestimated in 2009; second, most embarrassingly, Obama and his team cut the size of the stimulus for political reasons. FDR did the same thing; he kept the government debt small until after 1937. The total cost of the stimulus has been ticked at 831 billion dollars for the period 2009-2019 or about 100 billion dollars per year, most of it concentrated in 2009 and 2010. The stimulus was implemented at the right time; it prevented depression, brought back growth within far within a year, in June 2009, of its passage and implementation. It did not bring full employment but from a peak of 10.1% unemployment is now 7.6%. Underemployment is a persistent problem, around 20%, the labor participation rate is a problem. End result; stimulus had a positive effect but not as positive as it could have been.
He said if it was passed unemployment would not go over 8%. Well after it passed it did not go back under 8% for over 3 years or until many peoples benefits ran out. It is still right at or around 8%. The package was so loaded with pork and payback for his campaign supporters, not to mention crony capitalism that it was doomed to fail. Few policies had much of and the ones that had the most bang for the buck were controversial. Like cash for clunkers, Solyndra, ext... Probably the best 2 things in the package were only a small percent of the package and that were the tax credit for buying a home (which took many foreclosures off the market) and that was a tiny piece of the package, and the other was the infrastructure projects which were also way too small of a percentage of the package. A more direct and pointed package half the size would have went further, but instead they were like kids in a candy store giving back to the interest groups that got them elected.
Just look at the statstics before and after the stimulus. Private sector spending went down by almost 50% and unemployement soared. That money further boosted the inflation in America. It doesn't take a genius to look at the before and after picture and say it was a huge hit to our economy. People need to understand the economy will recover. It does not need artificial money pumped in to add in confusion and uncertainty. Look at the crash of 1929 that supposedly started the great depression. Unemployment peaked at 9percent and fell to 6 percent 3 months after, then FDR did his own stimulus package by recklessly spending on hopeless government projects and just look how well that turned out.
The 2009 stimulus cost the country a great of money and increased the national debt greatly. President Obama thought this would solve the problems but it clearly did not do so. The unemployment rate is still very high and does not seem to be capable of getting to a sound level.
In my opinion, way too much of the money was spent on big companies. The average person did not see any change. I live in a small town that depends on manufacturing jobs. In the past few years, I have saw almost all of our manufacturing companies completely close down, mostly because of imports. We are the people hurting for jobs. Where's our help???
I think they had good intentions with the stimulus bill. Way too much of the money still went to big corporations. The average working person saw no change in their day to day living. This is where the change needs to take place. I live in a small town. We have had almost all of our manufacturing plants close down in the past few years. So show me where any help for the regular person went.