Is Economic Policy Debate a Fraud?

Bailout and stimulus worked, say economists, and no reasonable people disagree

Democrats and Republicans in Congress champion such profoundly opposed economic policies, so you might imagine that experts would also be deeply divided on how to manage things. But "nothing could be further from the truth," write Betsey Stevenson and Justin Wolfers of Pennsylvania's Wharton School.

They cite economists surveyed by the University of Chicago's Booth School of Business, who mostly agree that bank bailouts lowered unemployment. That's in stark contrast to politicians on both sides of the aisle who've taken a populist stance against the bank bailouts. Obama's stimulus, too, is viewed as a success at reducing unemployment by 92% of economists surveyed, in contrast to Republican congressmen who claim that it failed.

Stevenson and Wolfers allege that the fault lies not with politicians, but with Republican voters, who "have pushed their representatives to adopt positions that are at odds with the best of modern economic thinking." This, they claim, means that congressional Republicans are blocking textbook solutions to problems like high unemployment, and their motives are "raw politics."

Via Bloomberg Business Week.

Do you think either the bailout or the stimulus worked?

[jimmy]

The bailouts worked? The only thing the bailouts achieved is proping up failing businesses and preventing the market from reallocating capital. The market is trying to correct malinvestment, this has to happen. Austrian economists understand this.

[Bobolinsky]

There is no source article. Please cite your sources politix.topix.com

[Bobolinsky]

Betsey Stevenson
http://www.dol.gov/_sec/aboutosec/bio-stevens...

"Betsey Stevenson is Chief Economist to Secretary Hilda L. Solis."

That's Secretary of Labor Hilda L. Solis

"She is currently on leave from her position as an Assistant Professor of Business and Public Policy at the University of Pennsylvania's Wharton School."

"Dr Stevenson has published widely in leading economics journals about the impact of public policies on the labor market, with a focus on women and families."

Not so much on economics I guess.

[Bobolinsky]

Whoops... I found the source article Mary...

Here it is.

The U.S. Economic Policy Debate Is a Sham
http://www.brookings.edu/research/opinions/20...

[Bobolinsky]

I haven't cracked Justin Wolfers yet but this give a little more perspective.

Economists in Love: Betsey Stevenson and Justin Wolfers
http://www.itsthedishes.com/2343/2011/03/econ...

[Souljah]

well were no longer @ 11 percent unemployent... which did not start to drop until after the stimulus and strategic bail outs.(which I did not agree with at the time. the banks should've been held accountable, but as long as they pay us back its a great idea.)

[Bobolinsky]

When did the U-3 number hit 11%?

[Souljah]

estimated it got as high as 10.5 percent

[Souljah]

My bad i saw it on the news, I must've been watching fox as they said unemp. was at 10.5-10.6 percent i remember, but according to this site unemployment's highest peak was @ 10.1 percent at it's peak around nov-dec 2009

[Souljah]

http://www.tradingeconomics.com/united-states...

[srennelkztirF]

Doesn't matter because NONE of those figures count all of those that are unemployed. If they did, the current number would be so high that the Dems wouldn't let BHO run for a second term on their ticket.

[autiger]

Success ?? That's laughable.. We will soon find out.. Romney will have his chance as President.. The "proof will be in the pudden".. Heck..we can't even have the real unemployment rate w/ out the Govt. messing w/ the numbers.. This election is about one person. President Obama.. Can't spin that..

[the_z]

yea the number we get is their twisted number instead of the true one in which ppl have given up or have taken a low paying job cause they couldn't find anything else.

[autiger]

They deleted "jobs available"... then we dont count people who stoppef looking for a job .. If the same numbers were used as 4 years ago.. Unemployment would be close to 10%.

[Nikki6]

It's funny because this story is followed by GM's record losses. Obama fanboys will lie about anything....

[Wilberhum]

Boy did you get that one right. :( Obama fanboys will lie about anything and Romney's fanboys always tell the truth. No bigotry on your part. Da

[Stratton]

You can find economists who will tell you that the bailout and stimulus worked, but you won't find one that will quantify how much those measures reduced unemployment by. Because they can't. Because they didn't.

[armed_liberal]

They both worked. The US economy has turned the corner and we can now see the light at the end of the tunnel. Thank God we still have an auto industry. Thank God Mitt Romney wasn't president the last 4 years.

[srennelkztirF]

@Tolles - David Axelrod's Politix-account doesn't get the little "verified"-checkmark ? WTF is up with that?

[marine1]

what goverment policy does not consist of fraud might be a better question??

[Bobolinsky]

Here's a fun video by a woman that feels like she's been the victim of "fraud" of another sort.

Obama Supporter Interviews Her 2008 Self
http://www.youtube.com/watch... #!

I have no idea if she was an actual Obama supprter or if she just plays one on Youtube. But it's funny anyway :)

[DerivePI]

"Translation for Dummies" - Have you forgotten about 4% unemployment and personal responsibility yet?

[srennelkztirF]

The "University of Chicago Booth School of Business"? Never heard of it. Is that a fancy name for the Center for American Progress?

[MrGrey]

I find it funny how all the comments on this article further reinforce the authors point