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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: mel221 who wrote (125524)	10/28/2012 6:47:02 PM
From: Sr K	Respond to of 149317

Mel: I am not an economist, ... If the economy is modeled as a set of equations, and Stimulus S (S = 5% of GDP) causes a change in GDP of T, then Stimulus -S causes a change in GDP of -T The Yahoo article misstates what many economists may think, calling a change in growth when they meant change in output or GDP. They couldn't be referring to a change in growth amount. Of course it has continuing effects in years after the stimulus, just as a negative number stimulus would. All of this compounds, whichever direction it is going in. That is why the Fed is so mindful of deflation and why Ben Bernanke is the right person to be Fed Chairman. The economy did not fall off a cliff a year after the stimulus money was spent. I don't know the numbers, but the GDP did not drop by $825 billion the next year and have to make that up just to have a zero growth year. If Republicans think the $825 billion added to output one year only, and that's what your statement sounds like, and that's what calling it a "waste" sounds like, and they don't realize it stepped up the level of the economy going forward, every year, compounding as the economic recovery takes hold, that would explain how people who know what Obama did and those who don't understand can see his performance differently. What is amazing to consider is that Romney may not understand. I believe Ryan does not understand. Romney, we can't tell what he thinks and knows.