Stimulus helped US

President Barack Obama deserves no great credit for reacting to the worst economic downturn since the Great Depression with stimulus spending, but he certainly deserves no blame.
Economists have long preached that fiscal stimulus was a necessary governmental role in combating recessions.
The recession of 2008 will earn a new chapter in economics textbooks because it so clearly demonstrated the accuracy of the stimulus models. European countries that adopted austerity to combat recession are reeling, belatedly recognizing that their poorly timed thrift is intensifying the recession and — due to decreased tax revenue — ballooning their deficits.
The U.S. economy, which implemented a smaller stimulus than most economists recommended, at least went in the right direction. The result is a slow recovery.
This is no coup for Obama. All he did was follow the advice of economists and the strategy successfully followed by his predecessors of both parties.
Blaming him for a slight increase in spending, though, makes little sense. We need only look to Europe to see that austerity is the worst response to a recession.


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Filed under Conservatism, Election 2012, stimulus

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