GOP played politics on stimulus bill, and lost anyway
Arlen Specter was one of just three Senate Republicans to buck his party and vote in favor of President Obama’s stimulus package. After he announced his decision, he says, a fellow GOP senator approached him in private to offer congratulations.
When asked, however, that unknown senator declined to join Specter because he was too afraid of drawing a primary challenge. He was glad somebody was doing the right thing, but he wouldn’t risk it himself.
As Specter put it, “there are a lot of people in the Republican caucus who are glad to see this action taken without their fingerprints, without their participation. … I think a good part of the caucus agrees with the person I quoted.”
In the House, of course, not a single Republican voted in favor of the stimulus bill, a fact the GOP celebrated as a great victory. As Republican Party chairman Michael Steele later told the House GOP, “The goose egg that you laid on the president’s desk was just beautiful.”
Given such remarks, it’s pretty clear that Republicans in Congress decided to approach the stimulus measure not on its merits but as a matter of party discipline; they voted not as individuals with minds of their own, but in lockstep, as a party following a herd instinct. Before the vote, the small number of GOP members who had expressed support for the stimulus or were waffling were pressured not to betray their fellow party members, and the pressure worked.
In parliamentary systems such as Great Britain, of course, such party-line votes are common, but until the early ’90s, they were relatively rare in Congress. That changed when Newt Gingrich became House minority whip and began to use party-line votes as a way to define the GOP brand to the American public.
In 1993, for instance, President Clinton proposed a major tax increase to help bring down soaring deficits and restore fiscal confidence on Wall Street. The proposal passed, but without a single Republican vote in the House. After that vote, Gingrich made a prediction about its economic impact:
“We’ll be in a recession by next year, and I think [Clinton’s] tax increase will increase the deficit by putting Americans out of work.”
In economic terms, Gingrich could not have been more mistaken. The deficit did not increase; it fell annually from $300 billion in 1993, reaching surplus in 1999. The average unemployment rate —- 6.9 percent in 1993 —- also declined in every subsequent year of Clinton’s presidency.
However, if Gingrich’s stand was bad economics, it proved to be good politics. The party unity they displayed helped define the Republicans as tax-cutters and the Democrats as tax-hikers in the public eye, contributing significantly to the surprise Republican takeover of the House in 1994. That’s the model House Republicans are trying to emulate.
However, there’s another example that may prove more telling. In late 1995, Gingrich again used party discipline to block passage of a federal budget and forcing a shutdown of the government. The American people were not amused, and this time they sided not with the Republicans but with Clinton. Gingrich was forced to publicly back down, a humiliation he never overcame.
At a time of perceived crisis, in other words, public tolerance for partisan games proved pretty low. And the standoff of 14 years ago doesn’t compare in severity to the economic emergency confronting us today.
In poll after poll, roughly 60 percent of Americans say they approve of how Obama is handling the economy. More tellingly, in a CNN poll 60 percent of Americans say they approve of how congressional Democrats are handling it, while 55 percent disapprove of Republican congressional leadership. A new AP poll puts it even more starkly — 68 percent approve of Obama’s handling of the economy, 49 percent approve of how congressional Democrats are approaching it. Only 33 percent approve of the Republican approach, with 59 percent disapproving.
In times of stress, people naturally seek comfort in unity. The Republicans, hurting politically, turned to each other for that comfort. But the American people, also under stress, also sought unity and instead saw the GOP act in boldly partisan fashion. They clearly don’t approve.
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101 comments Add your comment
Mrs. Godzilla
February 19th, 2009
6:29 am
And the funny business continues.
“GOP lawmakers tout projects in the stimulus bill they opposed”
http://www.mcclatchydc.com/251/story/62181.html
Sit back and watch the tap dancing!
AJC/DNC Management
February 19th, 2009
6:39 am
Thank you for clarifying the fact that Republicans had nothing to do with the “stimulus” bill, we appreciate your acknowledgment.
More tellingly, in a CNN poll 60 percent of Americans say they approve of how congressional Democrats are handling it, while 55 percent disapprove of Republican congressional leadership.
Oh boy, the CNN newsroom disapproves of Republicans, isn’t that the way it is supposed to be?
democrats wrote the stimulus bill with Republicans locked out, they rejected Republican input, they failed to address all of the Republican concerns, who, pray tell, are the “partisans?”
Joey
February 19th, 2009
6:40 am
It appears to me that the Senate and House votes somewhat matched the poll approving Obama. However, according to the AP poll, the vote was starkly different from the poll disapproving of congressional Democrats.
This raises several questions. Three of which are:
Do those of us out here who oppose this stimulus, and the several associated spending measures, deserve to have our voices heard in the form of Senators and House members voting against the bill?
Were any Democrat Senators pressured into voting for the bill?
Were the Democrat House members voting against the bill granted permission by the high priestess Pelosi?
ByteMe
February 19th, 2009
6:41 am
In times of stress, people naturally seek comfort in unity.
Let us unite to help the Republican Party become a boutique brand.
GodHatesTrash
February 19th, 2009
6:51 am
Cowardly leadership for a party full of cowards.
Caveman
February 19th, 2009
6:56 am
If the republicans were “locked out” when the stimulus bill was written, why were some of their proposed tax cuts part of the bill? I guess “locked out” really means that the republicans and their corporate masters weren’t allowed to put everything they wanted in the bill.
Wonder why that is? Oh yeah, because the American people threw their sorry butts out of power en masse. Sorry, a minority party doesn’t get everything they want. Get over it.
Cherokee
February 19th, 2009
6:58 am
The honorable thing for Republican house members to do, of course, is work to influence the Republicans in their states to refuse the monies from the stimulus.
Can we expect such integrity, for example, from the good Drs. Gingrey and Price?
Righhhhhttttt….
AJC/DNC Management
February 19th, 2009
7:01 am
Caveman February 19th, 2009 6:56 am If the republicans were “locked out” when the stimulus bill was written, why were some of their proposed tax cuts part of the bill?
Because the democrats had to bribe a bunch of RINOs just to get their abomination passed, moron.
AJC/DNC Management
February 19th, 2009
7:18 am
Oblahmasan begged Republicans to vote for this bill, even though they were not allowed to even read, and to their great credit, they told wonder boy to go pound sand.
Victory #1.
Seven House Democrats voted against the monstrosity, despite CNN newsroom polls.
Victory #2.
democrats hid behind their RINO human shields when announcing passage of this travesty, apparently not even brave enough to take credit for their own handiwork, gee, I wonder why?
Victory #3.
In the coming years, even though the economy of the United States is mired in a deep depression, the ghettos will once again be brimming with financial activity on the 1st and 15th of every month, a wondrous sight for every decent American to behold.
Victory #4.
AJC/DNC Management, YOU'RE FIRED
February 19th, 2009
7:20 am
“Because the democrats had to bribe a bunch of RINOs just to get their abomination passed, moron.”
I’m sorry, but it seems that you’re the freaking moron, Moron. The Reflublicans played politics with our dire situation. They should be ashamed, because the stimulus is going to work and they will try and take as much credit from it as they can. The days of the conservatives are OVER! Thank god.
Taxpayer
February 19th, 2009
7:23 am
Well, Jay, you know that old saying, You can lead a Republican to shelter but you can’t make him come in out of the yellow rain, or something like that. I think it’s one of those corollaries of the Trickle Down Theory.
DB, Gwinnettian
February 19th, 2009
7:26 am
“We’ll be in a recession by next year, and I think [Clinton’s] tax increase will increase the deficit by putting Americans out of work.”
This man isn’t selling apples on the street to make ends meet, why, again?
The racist language is a shame...
February 19th, 2009
7:31 am
That this blog invites “civil” dialogue about race yet tolerates thinly veiled and offensive racist word plays on the president’s name like Oblahmasan and Brakkka. Even the GOP faithful, like McCain, denounced this type of racist rhetoric.
Some more even handed monitoring of this blog would get the tone out of the closet racist’s gutter.
ByteMe
February 19th, 2009
7:32 am
Poor AJC/DNC. You can tell how really wrong he is by how much name-calling he does. Can’t even clearly articulate his position without resorting to junior-high-level taunting.
Pathetic.
Dave R
February 19th, 2009
7:39 am
Jay, you keep trying to use polls as a source of input to provide leadership. The American people, by and large, are a society of American Idol worshiping, what’s the next new craze I can get my hands on, people with short-term interests. That is the main reason we have President Hope and Change in the Oval Office right now. In six months, if the so-called stimulus package isn’t working (as I predict it will not be), and the economy is still in the tank, these same people who love what is going on right now will be at the throats of those Beautiful People in liberal-land.
Leadership is never based on putting a finger to the winds to decide what to do. Nor is it something that looks to the next year or two years to see if it is successful. If Michael Steele is smart (and I think he is), he’ll take his time and craft a long-term strategy to regain the House and Senate when the policies of Hope and Change fail miserably.
Now, on to your revisionist history, Jay. The deficit fell, not because of increased tax revenue, but because of budget CUTS and smaller increases in spending – both of which can be attributed to the President and Congress working together to craft something that would accomplish that goal. However, Gingrich failed in 1995 to hold firm on the government shutdown as well. His lack of leadership was relying on polls.
As to Sen. Specter’s comments regarding another Senator’s thanking him? I have a lot of trouble believing him. I think he is looking for political cover and comfort right now, and finding none. Therefore, the “unnamed” fellow Senator to thank him. Arlen Specter is a failure as a Republican in a blue state, and is up for re-election next year (if my research is right). He voted for HIS job security, not ours. And frankly, any Senator who wants a Congressional inquiry into whether the New England Patriots videotaped his Philadelphia Eagles before the Super Bowl is no fan of small government.
AJC/DNC Management
February 19th, 2009
7:47 am
Bipartisanship? The administration failed even to respond to GOP offers to endorse an Obama campaign proposal to suspend capital gains taxes for new small businesses.-Karl Rove, WSJ
Funny as hell, the GOP is proposing oblahmi’s kampaign promises and getting rejected for their troubles, bwahahahahaha.
DB, Gwinnettian
February 19th, 2009
7:51 am
You can tell how really wrong he is by how much name-calling he does.
Name-calling is not always the key to understanding whether a commenter is completely full of crap, but it’s a good indicator, yes. Try to imagine ajc/dnc posting for an entire day without his pet names for people and organizations he dislikes. You can’t, can you?
david
February 19th, 2009
7:56 am
It is very shortsighted to see this so called stimulus bill as a success or failure.The worst part about it is that they are no American worker provisions in the bill.The greedy,yes greedy contractors, are going to win bids based on who they know not the quality or qualifications to do a particular job.Furthermore they will continue to exploit illegal immigrants for cheap labor on these projects.This will only stimulate whatever country they are from.I would also like to point out that I never got a job from a poor person cause quite frankly they can’t pay you.We are constantly demonizing big companies that actually have the resources and capital to move their operations to another country say Ireland.In Ireland the corporate tax rate is 11%. What is stopping any company with enough resources from becoming an Irish based company to which the Federal government would see no tax revenue from? I also would like to point out that the Democrats and Republicans BOTH serve their masters.Who are these Masters? If you don’t know by now that big money controls the body politic then you are either stupid or have your head in the sand.The two party system keeps us divided.As long as the two party system prevails the people will never be served.
Taxpayer
February 19th, 2009
7:59 am
All of you Republicans out there in your dream worlds be sure to storm the offices of your state governors and legislators and demand that they refuse that stimulus money. Come on. Show America that you will not falter in the face of failure. No sir. Show America that you go down with your shipload of principled pandering as a united party. The few, the proud, the minority Republicans. And, remember, don’t go down without a fight. Just say NO.
Joey
February 19th, 2009
8:10 am
Regarding the demands and pleas for Republican’s to refuse any bailout money I offer this:
Despite our efforts the bill passed. Despite our efforts we will be paying for this spending for a very long time. Since we are not going to be excused from repaying our share or more, it would be silly, even wrong, for us to decline the funds.
Mrs. Godzilla
February 19th, 2009
8:12 am
Taxpayer
I have for days been wondering where all the “THANKS BUT NO THANKS” is.
(I suspect it’s exactly where it was the last time we heard that phrase)
Jindal, Sanford, Barbour…..are making noises in that direction, but we shall see.
Shawny
February 19th, 2009
8:12 am
There many things wrong with your way of thinking, Bookman. First, you say, “Republicans in Congress decided to approach the stimulus measure not on its merits…”.
Merits?!? It is crap. A couple of days ago, on Jeopardy, the clue was “a step before communism, where the government takes control of the economy”. The answer was socialism. While I don’t believe (totally) that we have taken a large step toward socialism, I do believe that the spending in this bill is a bunch of crap that democrats want to push and have wanted to push for years, but really won’t do much to jump start the economy. We get massive debt with little benefit. Merits, you say. The republicans were right to vote against it. It should have been scaled down to only what is needed. So much for reduction in special interest, pork barrel spending. So much for transparency. NO LEGISLATOR could have read the entire thing in the time that was given to slam it through.
Try your best to re-remember your history. Current memory is faulty. Yes, Clinton wanted large tax increases. His slant in his 1st two years is what lead to the GOP takeover in both houses of congress. After Newt and the boys came in and wrote the budgets, cutting spending, we were able to balance the budget. Oh, yeah, and corporate profits were high with $9/bbl oil, which gets taxed.
And what does this have to do with the stimulus? It is the opposite of what happened during Clinton’s years. It is massive spending on a scale we haven’t seen in a very long time. And in today’s dollars, the current crisis isn’t as bad as in the early 80’s, much less the 30’s.
And polls take the pulse of the people, but the people want the money, so of course, they want the stimulus, even though it is not the right thing to do in the long term. The people don’t care about the increase in debt and devaluation of their savings, as the people can’t see that far into the future. It is about what can you do for me now?
Cherokee
February 19th, 2009
8:13 am
Joey, where are your principles? I didn’t think Republicans could be bought off so easily. You’re the party of values, right? Stand up for them…Just say NO!
Mrs. Godzilla
February 19th, 2009
8:14 am
Posted:
Regarding the demands and pleas for Republican’s to refuse any bailout money I offer this:
Despite our efforts the bill passed. Despite our efforts we will be paying for this spending for a very long time. Since we are not going to be excused from repaying our share or more, it would be silly, even wrong, for us to decline the funds.
SHORTER VERSION:
My priciples can be bought.
Cherokee
February 19th, 2009
8:16 am
And by the way, Joey, this bill contains the biggest tax cut in US history. And tax cuts always result in more money to the Treasury, right? (At least that’s what your leaders Boortz and Limbaugh spout.) So we’re all in for good times…
Taxpayer
February 19th, 2009
8:17 am
Let all the so-called “American” companies that don’t want to pay their taxes just leave. So what. There are plenty of foreign-owned companies that are more than willing to come here and pay taxes. They are more “American” than the so-called “American” companies. That argument of corporations leaving because of taxes is as wrong as the argument that the Republican party is the party to vote for if you want to end abortions. It’s just not true. Of course, there are plenty of so-called “American” companies that do take advantage of loop-holes of their own creation to skirt their responsibilities to we the people to pay their taxes by setting up shell corporations off-shore and other such deceitful, underhanded, filthy, un-American, “not paying for their share of protection by funding the US military to fight terrorism”, etc., games…Tell me all about how Corporations should not have to pay any taxes because we the people have to pick up the tab anyway and I’ll tell you to pull your head out of that overpaid, arrogant CEO’s and BOD’s buttocks. Lay off the flavor-aid — it kills.
DB, Gwinnettian
February 19th, 2009
8:19 am
Taxpayer @ 7.59, seriously, I’d just as soon drop this “GOPers are hypocrites for taking stimulus money” business, for two reasons:
1) Unless you believe in the concept of collective punishment, it’d be morally wrong to deny the citizens of those GOP-led states the benefits legislated by our government. I have no problem with otherwise dunderheaded governors and state legislatures doing the right thing on occasion.
2) I just think it’s a non-starter as a debate tactic. I never bought the notion that prominent Dems were somehow hypocritical because (to pick an especially lame example) they used legal tax loopholes to avoid paying taxes when they could, as was a charge hurled by The Stupids against Teresa Kerry back in 2004. I vote for people based on the type of policies they’re likely to promote, not because I think they’re morally wonderful, especially. The personalities ought to take a back seat.
(Hard as that may be for those pre-programmed to think of Obama voters as hopelessly smitten by the man’s personality, in my case anyway, it’s the truth.)
Just my .02 USD.
Cherokee
February 19th, 2009
8:27 am
You make a good point DB. But it’s hard to resist, even though I expect you’re correct.
Taxpayer
February 19th, 2009
8:29 am
And, despite “your” (Republican) efforts, that bill is laden with tax cuts. Darn those no good democrats. How dare them compromise with the fantastic four. Or, was it three. But it’s not too late. You can still have your principle and beat it too. Just take that money. Take all that you are entitled to and stick it in the bank. That’s right. Shove it in the vault. That’s tellin’ ‘em what for! Take it because you will have to pay it back. There’s no free ride and we all know that. Don’t we. Don’t WE! Take every penny and put it in something that earns interest and hold on to it until the bill arrives. Then pull that money out and pay it back and save we the people from the burden of paying it back later with interest. Do it. Do it NOW. What the hell are you waiting for! Copy this post and mail it off to your Republican — Done Nothing — representatives and tell them to DO IT. Do it for your children — if you have the guts.
AJC/DNC Management
February 19th, 2009
8:32 am
Blah, blah, blah-
Taxpayer February 19th, 2009 7:59 am All of you Republicans out there in your dream worlds be sure to storm the offices of your state governors and legislators and demand that they refuse that stimulus money.
You libs really should start listening to Conservative talk radio, so you can get a clue-
In part because of Sanford’s vocal opposition to accepting bailout money from a federal government that simply borrowed the funds for the loan in the first place, Rep. James Clyburn (D-S.C.) inserted a clause in the “stimulus” bill that allows state legislatures, through passage of a concurrent resolution, to override Governors who refuse to accept bailout cash, and take the money anyway.-AmSpec
duh
Mrs. Godzilla
February 19th, 2009
8:36 am
DB, you are wise and pragmatic.
However, being afraid to put “your money where your mouth” is or being seen as “silly” screams to be pointed out for the stuff and nonsense it is.
Mrs. Godzilla
February 19th, 2009
8:43 am
Andy,
If I remember correctly the founding fathers faced treason charges and death penalties but still managed to stand up for the they believed in.
Sanford is still saying maybe not…..
What makes a muskrat guard its musk in the misty mist of the dusky dusk?
COURAGE
Soothsayer
February 19th, 2009
8:46 am
No more Hummers? Oh, what a glorious day!
BDAtlanta
February 19th, 2009
8:50 am
I certainly hope we don’t have to see any more Lindsey Graham meltdown/tantrums in my lifetime. But that is probably asking too much…
Dave R
February 19th, 2009
8:52 am
Taxpayer, such vitriol for so early in the morning . . .
I, for one, have already asked my governor to refuse to take this money. It really is the principled thing to do. Unfortunately, the RINOs in our state legislature have no concept of cutting services or costs when revenues fall, and find themselves in a $2 billion deficit. Since they are in survival mode (they are trying to save their own skins) they have no reason to not accept this money.
Now, take a chill pill and adjust your tin foil hat a bit to the left (naturally). You’ll feel a lot better.
Now, I have no idea where you think that some folks feel that corporations shouldn’t pay any taxes, since not a single dime of tax money comes from the corporation anyway. Corporations are not consumers – individuals are. Ultimately, individual consumers fund all the taxes that corporations have to pay.
Ultimately, our short-term gratification of another trillion dollars in debt, funded by banks owned by countries that are not friendly towards us, will result in long-term consequences none of you liberals will ever understand. Because it is all about short-term gratification for you.
Joey
February 19th, 2009
8:57 am
Cherokee: O.K. I will say no. No, I will not behave in accordance with your misguided view of what I should do. And I confess I have no knowledge whether you think or don’t think.
Godzilla: If money is thrown into the garbage, should our principles prevent us from taking it out? For me the answer is no.
BDAtlanta
February 19th, 2009
9:00 am
This is a really good explanation of why the GOP acted the way it did: Calling Out the Conservative Lies on Stimulus
http://www.commondreams.org/view/2009/02/05-1
By the way, thanks to Bosch, Taxpayer, and others for the help on using links.
Taxpayer
February 19th, 2009
9:03 am
DB,
If the Republicans had not been grandstanding and making such idiots of themselves for we the people with their “just say no” campaign and other pathetic displays of pandering, then I might be a little more receptive. Their first attack against the stimulus was their “list” of all that massive amount of pork that was thrown in. Remember. I even went through that posted list and summed up the numbers and they amounted to about 1% of the total package. That was the Republican party’s big argument and it blew up in their face. Then, they started with all the crap about the massive spending that does no good and does not create anything but busy work, etc. Riiiight. Please don’t make me pull up all the proof straight from the Fed that debunks any such claims. Then, there’s the moaning about no tax cuts — the very type of cuts that Republicans (Isakson more recently) have already acknowledged will not have a stimulative effect in this situation because of the massive amount of debt that people are burdened with. But, in the spirit of compromise, a few Republicans sat down with the Democrats and included a lot of tax cuts that cover a lot of people. Then, some Republicans had to chime back in on wasteful, non-job-creating spending such as, paraphrasing Mrs. G, putting condoms on mice for the trip on a high speed train or something like that. You do recall some of those exaggerations that may be best used to describe the rants of talk show hosts rather than the deliberations of a senator or at least that should be the case. Now, what is all the latest rage from the Done Nothings. “We should have been given a chance to review this massive bill and read every single word over coffee.” Cut the crap, OK. First of all, how the hell did these bozos generate that very first list of pork barrel spending that amounted to 1% of the total. They magically managed to scour that entire bill in record time and found what amounted to the proverbial needle in a haystack. I mean, really. Republicans and their crap. Besides, they had already told us over and over how they were going to just say no to whatever it was and so they did. Give it a rest like I’m about to do. I need more coffee.
Eric
February 19th, 2009
9:06 am
Losers, everyone. If this stimulus plan works I expect the GOP members of the house and senate to jump en masse off the 14th Street bridge. It’ll be a new national holiday!
lovelyliz
February 19th, 2009
9:06 am
How short is the collective memory of the GOP. Thery’ve learned absolutely nothing from th mistakes of the Democrats who used to require the same absolute party loyalty and lost control of the country. The Republicans havent’ just stabbed themselves in the back. They are turning the knife.
Taxpayer
February 19th, 2009
9:12 am
Indeed, Dave. And it’s CuSO4∙5H2O. As for you other claims, pull your head out. I did promise to tell you that in my post so don’t hold it against me.
CommunistAJC
February 19th, 2009
9:12 am
Bookman,
unemployment is expected to jump to double digit numbers by years end. No one has read the bill including President Hussein. So, how is the GOP lost?
CommunistAJC
February 19th, 2009
9:15 am
Bookman,
also, the American people are not so forgiving when it comes to political screw ups. The GOP has nothing to lose now. The democrats have everything to lose. You can quote polls all day long but polls do not represent reality, comrade.
Bosch
February 19th, 2009
9:16 am
I heard once that Anne Coulter wasn’t really as obnoxious in real life – she does it for show, I mean she did date Bill Maher for a while.
That kind of behavior, along with the unknown Senator coming to Spector and saying, good job, in my opinion, is even more despicable. With Coulter’s case, she’s just raising hell to raise hell’s sake – she’s enticing the idiots amongst us to rattle their sabers against a made up group of people.
In the case of this unknown Senator – it shows politics as usual – someone is coward enough to not put their name on it when they know it’s a good thing because they are afraid of bucking the party.
Susan Collins and Olympia Snowe are heroes. Arlen Specter did it because he’s old and doesn’t have anything to lose.
BDAtlanta
February 19th, 2009
9:17 am
This is a really good explanation of why the GOP acted the way it did:
Calling Out the Conservative Lies on Stimulus
By the way, thanks to Bosch, Taxpayer, and others for the help on using links.
Andy the Welcher
February 19th, 2009
9:18 am
Well…
It appears as if the Democrats are welching now. What is the tally up to now? Maybe a dozen tainted cabinet members or failed appointees? Now it appears as if the illinois soap opera continues? Good job Dems… You won by going up against the “culture of corruption” now in a scant 30 days it appears as if they haven’t learned a damn thing in the last 8 years. Unbelievable…
ew
CommunistAJC
February 19th, 2009
9:19 am
Bookman, here is an article that sharply rejects your claim about the stimulus bill.
Fed Predicts Shrinking Economy, Higher Unemployment
Fed Downgrades Economic Forecast for This Year
Wednesday, February 18, 2009
By Jeannine Aversa, Associated Press
Washington (AP) – The Federal Reserve on Wednesday sharply downgraded its projections for the country’s economic performance this year, predicting the economy will actually shrink and unemployment will rise higher.
Under the new projections, the unemployment rate will rise to between 8.5 and 8.8 percent this year. The old forecasts, issued in mid-November, predicted the jobless rate would rise to between 7.1 and 7.6 percent.
The Fed also believes the economy will contract this year between 0.5 and 1.3 percent. The old forecast said the economy could shrink by 0.2 percent or expand by 1.1 percent.
The last time the economy registered a contraction for a full year was in 1991, by 0.2 percent. If the Fed’s new predictions prove correct, it would mark the weakest showing since a 1.9 percent drop in 1982, when the country had suffered through a severe recession.
The bleaker outlook represents the growing toll of the worst housing, credit and financial crises since the 1930s. All of those negative forces have plunged the nation into a recession, now in its second year.
“Given the strength of the forces currently weighing on the economy,” Fed officials “generally expected that the recovery would be unusually gradual and prolonged,” according to documents on the Fed’s updated economic outlook.
Against that backdrop, unemployment – now at 7.6 percent, the highest in more than 16 years – will keep climbing and stay elevated for quite some time, the Fed predicted.
Fed officials anticipated that unemployment would remain “substantially” higher than normal at the end of 2011 “even absent further economic shocks.”
http://www.cnsnews.com/public/content/article.aspx?RsrcID=43756
CommunistAJC
February 19th, 2009
9:21 am
BDAtlanta,
you may want to make sure that your links work before you post them, comrade.
BDAtlanta
February 19th, 2009
9:21 am
ooops; try this one:
: Calling Out the Conservative Lies on Stimulus
Mrs. Godzilla
February 19th, 2009
9:22 am
“Mr.” Joey
If you had a principled reason for tossing the cash, then you cash in your principles when you take it out.