Wednesday, September 2, 2009

How Stimulating

The latest mantra from the Republicans is that the stimulus package passed by Congress last winter is not working, and Rep. Eric Cantor (R-VA), aka one of the GOP Great White Hopes, is suggesting that the rest of the money set aside for it should be repealed. However, according to The Wall Street Journal, it is working.

The U.S. economy is beginning to show signs of improvement, with many economists asserting the worst is past and data pointing to stronger-than-expected growth. On Tuesday, data showed manufacturing grew in August for the first time in more than a year. “There’s a method to the madness. We’re getting out of this,” said Brian Bethune, chief U.S. financial economist at IHS Global Insight.

Much of the stimulus spending is just beginning to trickle through the economy, with spending expected to peak sometime later this year or in early 2010. The government has funneled about $60 billion of the $288 billion in promised tax cuts to U.S. households, while about $84 billion of the $499 billion in spending has been paid. About $200 billion has been promised to certain projects, such as infrastructure and energy projects.

Economists say the money out the door — combined with the expectation of additional funds flowing soon — is fueling growth above where it would have been without any government action.

Yeah, but everyone knows that the WSJ is nothing but a left-wing rag and is just another mouthpiece for the Obama administration. And the Republicans have a stellar record when it comes to handling the economy. After all, they very effectively took a budget surplus in 2001 and pissed it into multi-billion dollar deficit on tax cuts for the rich and a needless war in just two years. Who can argue with financial management like that?