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Fri Jul 6, 2012, 12:01 PM

The Republican recession vs. the Democratic recovery (updated)

Last edited Sat Jul 7, 2012, 02:06 PM - Edit history (1)

Republicans continue to push the message that "the stimulus failed". I, being the economist that I am, continue to claim that it worked. That our current weak economy is not because the stimulus didn't work, but because we never got another round of stimulus. If you are driving up a steep hill, hit the gas and get halfway up the hill. You don't take your foot off the gas and say "well, apparently hitting the gas didn't work, we are still only partway up this hill". No a sensible person would GIVE THE CAR MORE GAS.

But if the Repiblican-controlled Congress did that, then they would not have a bad economy that they could blame on Obama, and Democrats, from now until November.

As I said last time http://www.democraticunderground.com/1002129028 , some probably will not like the word "recovery" but I would say that even with the last three months of slow job growth, that positive job growth is still positive. So here, are the updated numbers of job gains (or losses) by quarters.

First the Republican recession - a very severe one

1st (93,000)
2nd (573,000)
3rd (1,002,000)
4th (1,895,000)
total (with Bush as President) (3,563,000)

1st (2,258,000) note - Obama was sworn in as President and the stimulus passed in the middle of this quarter
2nd (1,433,000)
total (in Obama's first five months in office (3,691,000)

Then the Democratic recovery (starting by slowing the freefall)

3rd (780,000)
4th (310,000)
total of the last half year (1,090,000)

That the economy was no longer losing 1,000,000+ jobs every quarter is a very positive thing. The economy was in free fall and the stimulus was like a parachute. When you open a parachute, you keep falling, but at a much slower rate so that the landing does not kill you.

1st +118,000
2nd +543,000
3rd (137,000)
4th +385,000
total 2010 + 909,000

1st + 497,000
2nd + 290,000
3rd + 441,000
4th + 412,000
total 2011 + 1,640,000

1st +677,000
2nd +225,000

Amazing though, almost a million jobs created so far this year, and to hear the media tell it, we are doomed, oh, the economy is so horrible. They even put this little nugget in their story, a story where they paint a gain of 80,000 jobs as a negative. "And the scheduled expiration of tax cuts at year's end has increased uncertainty for U.S. companies, making many hesitant to hire."

Oh no, the "uncertainty" of the end of the Bush tax cuts on INDIVIDUALS is making COMPANIES hesitant to hire.

What that really means is that the top 1% is sorta holding the economy hostage. They won't hire unless they are assured of billions in tax cuts. And the media (which coincidentally they happen to own) is helping them to make their case.

Another point I would make is that the Government, thanks to Republican philosophies, has CUT 49,000 jobs in the last three months. If they had instead just done nothing, the economy would have gained 274,000 jobs (at least, since those extra 49,000 working people would have spent their money, further stimulating the economy). The economy runs on consumer spending and consumers are spending less. Why? I would point to at least a couple of reasons. First, political doom and gloom rhetoric does not increase confidence. Second, Republicans continue to push for cuts in Government jobs which further reduces both confidence and consumer spending. If not for the cutbacks in government spending that Republicans have been demanding, the economy would have added another 187,000 jobs over the last year (on top of the 1.76 million that it added, almost 200,000 more would have put us over 2 million as well as further stimulating consumer spending).

As these Republican candidates run around promoting a return to Reagan/Bush policies as a cure for what ails the economy, they should constantly be reminded of 2008, that the economy went down on Bush's watch. That it was Bush's leadership and Republican pokicies that created the mess we are still digging out of.

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Reply The Republican recession vs. the Democratic recovery (updated) (Original post)
hfojvt Jul 2012 OP
Turbineguy Jul 2012 #1
hfojvt Jul 2012 #2
hfojvt Jul 2012 #3
hfojvt Jul 2012 #4
napkinz Jul 2012 #5
hfojvt Jul 2012 #7
kentuck Jul 2012 #6

Response to hfojvt (Original post)

Fri Jul 6, 2012, 12:17 PM

1. Republicans don't know how inertia affects large systems.

The Bush era economic problems were due to Clinton, Obama failed because he didn't turn around the economy within 2 weeks of taking office.

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Response to Turbineguy (Reply #1)

Fri Jul 6, 2012, 02:40 PM

2. I don't think people are reminded enough about how bad 2008 was

Nor do they realize how much we have turned around. Mostly what they hear about is the sputtering.

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Response to hfojvt (Original post)

Fri Jul 6, 2012, 09:26 PM

3. kick

let's try the night shift

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Response to hfojvt (Original post)

Sat Jul 7, 2012, 12:59 PM

4. one more weekend kick

I am gonna make 10 recs if it kills me.

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Response to hfojvt (Original post)

Sat Jul 7, 2012, 01:40 PM

5. Could you provide a link to sources?

... where the information comes from. (It's something I would like to use in future posts because I think it's important we stress the theme that Republicans are the party of recession and we are the party of recovery.)

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Response to napkinz (Reply #5)

Sat Jul 7, 2012, 02:13 PM

7. I sort of already did

my source comes from my previous post, which I then update with the new job numbers.

And the source from my previous post was the post before that, which I updated with the new job numbers.

The job numbers are the infamous BLS reports that get released and discussed at the beginning of every month, as I linked to them here http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1292760#1295617

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Response to hfojvt (Original post)

Sat Jul 7, 2012, 01:48 PM

6. The Democrats have just been too slow in fixing their mess.

They really did it good this time. But that's the way the game works. Republicans screw up the economy and create recessions or depressions and the Democrats have to clean up the mess. It's just that the last Republican recession was so devastating that it could not be cleaned up like their previous ones...

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