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  • Joe Biden vs Joe Biden on the Stimulus

    The care with which we are carrying out the provisions of the Recovery Act has led some people to ask whether we are moving too slowly. But the act was intended to provide steady support for our economy over an extended period — not a jolt that would last only a few months.

    - Vice President Joe Biden New York Times, July 26, 2009.

    The Recovery Act, as we call it, provides a necessary jolt to our economy to implement what we refer as “shovel-ready” projects, meaning projects that were on the books that were needed in the municipalities and the states that would improve the quality of life for our constituents, the competitiveness of our businesses, but were unable to be funded.

    - Vice President Joe Biden, Remarks at The Progressive Governance Conference, March 28, 2009.

    Jolt or not jolt, President Barack Obama’s $787 billion stimulus plan is proving to be a colossal failure. President Obama promised the American people that if his stimulus passed, unemployment would not rise above 8% and that the U.S. economy would have 138.6 million jobs by 2010. In reality, the Obama stimulus has already witnessed 9.5% unemployment and is 6.4 million jobs short of what was promised by 2010. Heritage fellow J.D. Foster explains where Obama and Biden went wrong:

    The Keynesian stimulus theory fails for the simple reason that it is only half a theory. It correctly describes how deficit spending can raise the level of demand in part of the economy, and ignores how government borrowing to finance deficit spending automatically reduces demand elsewhere. Exculpatory allusions to idle saving simply do not wash in a modern economy supported by a modern financial system. Deficit spending does not create real purchasing power and so it cannot increase total demand in the economy. Deficit spending can only shift the pattern of demand toward government-centric preferences.

    Posted in Economics [slideshow_deploy]

    12 Responses to Joe Biden vs Joe Biden on the Stimulus

    1. matthew, queens, ny says:

      I hope Obama keeps Joe Biden around. He adds such a touch of humor; even if its unintentional. I like to say, gotta have my cup of JOE in the morning.

    2. Vested says:

      What an idiot!… Put this guy back on the train. . For the life of me, I can't figure out how we got to this point. I know people got a little discouraged in the last several years, but they didn't lose their friggin' minds. Pray that we can survive another 2.5 years of this bunch and then "hope" for a "change" . If not, maybe one of the State will seceede and we can all re-locate.

    3. Pingback: » Financial News Update - 07/27/09 NoisyRoom.net: Where liberty dwells, there is my country…

    4. Spiritof76 says:

      Deficit spending can happen with cut in corporate and personal taxes. That will be immediate and can boost the revenue to the government.

      A socialist president can not be bothered about real economic recovery. His only concern is to make sure that his governmental power increases using the stimulus spending as an excuse. As a matter of fact, he wants to make sure more and more percntages of people come to depend on the government- the essence of socilaism.

    5. Grace, Florida says:

      Now who do you think would make a better Vice President? Biden or Palin? I'd say Palin would have been the better choice. You betcha I do.

    6. Big Geno, New Jersey says:

      What did we expect!!!!!!!!!!!

    7. Jerry from Chicago says:

      Mr. Obama picked Joe for the same reason kings had court jesters. He's always good for a laugh.

      If Mr. Obama (hopefully) turns out to be a one-termer, Joe can always find a gig on Saturday Nite Live, playing himself.

    8. Lynn B. DeSpain says:

      Joe Biden couldn't make up his mind biven one choice!

      Hozro

    9. Marshall Hill MI. says:

      Bufoon and dangerous!

    10. Dick Keller says:

      He's one among many. Where are the statesmen of the past like Sen. Dirksen, Humphrey? We need to pray that God will have good reason to bless us with leaders like the Founding Fathers. Complaining doesn't seem to work. Logic doesn't seem to work. Emails and Blogs don't seem to work. Perhaps its time to get back to the basics and get back to God.

    11. Roger S., Ma. says:

      Deficit spending is useful only as a stop-gap, and then only if government uses the time "gained" (and inflationary impulse imparted)to get out of the free markets' way. Meaning, to control less of an economy, permitting market forces to find new equilibria more rapidly.

      In other words, what is taken out of the future economy by the deficit, must be replaced forthwith in the present through unloading the government incubus. To do this, the government must give up control, which is why it's not done, and the deficit remains deficit for the sake of deficit, which is why it works ever less well.

      A bit like addiction, requiring ever increasing dosages.

    12. Helmetfoot Boston, says:

      I'm glad "Joltin'" Joe is on the train as a passenger and not as an operator. He'd probably get lost enroute between trips. Not only that but retriaining him every week would be too expensive.

      Is Jay Leno looking for a 'sidekick?"

      Who handles his elevator trips?

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