Thursday, July 9, 2009

Claim: Stimulus made economy worse

A conservative friend who reads conservative websites sent me a story about the stimulus. The article claims unemployment is higher than if the government had not done any stimulus at all. The reasoning is that the predictions made in January of the effect of the stimulus were off. True. The administration was overly optimistic.

The article then points to the predictions for the economy made back then if there was no stimulus. Today's economy is worse than the prediction of what would happen with no stimulus. Therefore, the stimulus made the economy worse.

If you find that confusing I don't blame you. I had to read it twice to wrap my head around it.

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