Will They, Won’t They – Fiscal Policy

Usually I make use of government statistics to make my economic arguments. This time I will use graphs sent out by an established Wall Street investment firm called John Thomas Financial. That’s kind of amusing, although Wall Street is a great place to find authentic economic reports without any trace of ideology. This series of graphs is simple and easy to digest. It shows various measures of the performance of the US economy between January 2007 and early 2012, with the enactment of the 2009 Stimulus marked clearly on each one. When you page through the graphs you can see the lag time between enactment and impact. You can see that the impact was significant and you can see that the impact is receding rapidly now.

President Obama has asked Congress to reconcile their respective Transportation bills and to pass something. The Transportation bill pays for the kind of public works programs that have always been approved by Republicans. Now, suddenly they aren’t okay, never mind what is good government. The President has asked for revenue-sharing for states, no more or less than in previous recessions under Republican Presidents. What was good for Reagan is good for the country. Today the House of Representatives refuses to take any fiscal steps to help the country get on its feet again. That’s not ideology, that’s a shame.

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