U.S. Economy Gets Lift From Stimulus

[FredFlash]

By DEBORAH SOLOMON

WASHINGTON -- Government efforts to funnel hundreds of billions of dollars into the U.S. economy appear to be helping the U.S. climb out of the worst recession in decades.

Economists say the money out the door -- combined with the expectation of additional funds flowing soon -- is fueling growth above where it would have been without any government action.

Many forecasters say stimulus spending is adding two to three percentage points to economic growth in the second and third quarters, when measured at an annual rate.

The impact in the second quarter, calculated by analyzing how the extra funds flowing into the economy boost consumption, investment and spending, helped slow the rate of decline and will lay the groundwork for positive growth in the third quarter -- something that seemed almost implausible just a few months ago.

Some economists say the 1% contraction in the second quarter would have been far worse, possibly as much as 3.2%, if not for the stimulus.
U.S. Economy Gets Lift From Stimulus - WSJ.com

[itsbob (Premo)]

Originally Posted by FredFlash

By DEBORAH SOLOMON

WASHINGTON -- Government efforts to funnel hundreds of billions of dollars into the U.S. economy appear to be helping the U.S. climb out of the worst recession in decades.

Much of the stimulus spending is just beginning to trickle through the economy, with spending expected to peak sometime later this year or in early 2010.

The government has funneled about $60 billion of the $288 billion in promised tax cuts to U.S. households, while about $84 billion of the $499 billion in spending has been paid.

About $200 billion has been promised to certain projects, such as infrastructure and energy projects.

U.S. Economy Gets Lift From Stimulus - WSJ.com

I think you forgot the part where the economists piont to Bush's TARP and say that it was the money he put into the economy that is making the current difference, and the money he put out before leaving office was more than enough to serve it's purpose.

No reason to thow another TRILLION dollars at a problem that had already been resolved.

[FredFlash]

Much of the stimulus spending is just beginning to trickle through the economy, with spending expected to peak sometime later this year or in early 2010.

U.S. Economy Gets Lift From Stimulus - WSJ.com