Friday, January 29, 2010
The stimulus didn't work?
Just reported that the economy grew 5.7% last year, which was the fastest growth since 2003. Most of this came as a result of higher government spending that included programs like Cash for Clunkers, first time homebuyer tax credits etc.
There will be those in the media and conservatives on the right who will continue to say the stimulus didn't work, but that would be revisionism greater than anything ever attempted by a communist state.
True, jobs have not been create on balance, however, that is likely to come very soon.
What does it all mean for the stock market? Probably not that much help at all. The market looks ahead and what it sees, is Obama embracing the fiscal conservative approach, even as the evidence is clear that more of the same--stimulus--would have improved both the economy's fortunes and his own political clout as well.