Stimulating
Even Rupert Murdoch's Wall Street Journal is now conceding that President Barack Obama's economic stimulus package is having a positive impact.
In an article today, WSJ quotes economists as saying the bill has boosted economic activity even though it has not taken full effect yet.
The article states:
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.
For the third quarter, economists at Goldman Sachs & Co. predict the U.S. economy will grow by 3.3%.
"Without that extra stimulus, we would be somewhere around zero," said Jan Hatzius, chief U.S. economist for Goldman.
The article does quote some dissenting voices. There are those who believe actions by the Federal Reserve have had a larger impact, but it is still noteworthy when one of the most conservative, anti-Obama media outlets in the country says the stimulus is working.
In an article today, WSJ quotes economists as saying the bill has boosted economic activity even though it has not taken full effect yet.
The article states:
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.
For the third quarter, economists at Goldman Sachs & Co. predict the U.S. economy will grow by 3.3%.
"Without that extra stimulus, we would be somewhere around zero," said Jan Hatzius, chief U.S. economist for Goldman.
The article does quote some dissenting voices. There are those who believe actions by the Federal Reserve have had a larger impact, but it is still noteworthy when one of the most conservative, anti-Obama media outlets in the country says the stimulus is working.
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