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Defending Stimulus, Obama Preaches Patience, Seeks to Regain Credibility

Posted Jul 13, 2009 02:13pm EDT by Aaron Task in Newsmakers

President Obama took the unusual step of defending the $787 billion stimulus package in an op-ed piece in The Washington Post on Sunday:

"The American Recovery and Reinvestment Act was not expected to restore the economy to full health on its own but to provide the boost necessary to stop the free fall. So far, it has done that," the President wrote. "It was, from the start, a two-year program, and it will steadily save and create jobs as it ramps up over this summer and fall. We must let it work the way it's supposed to, with the understanding that in any recession, unemployment tends to recover more slowly than other measures of economic activity."

The President's effort here is twofold (at least):

  • He's trying to salvage his credibility on the economy by reminding Americans they must be patient, that there are no quick solutions, and that it's too soon to judge the stimulus program, which many Republicans are already declaring to be a "flop." This is particularly important as the White House must manage expectations at a time when Obama's support among independents is slipping.
  • He's trying to redefine the debate about the need for a second stimulus (or third if you count the 2008 Bush tax rebate) after Vice President Biden's "misread" comment opened the door to speculation about another package coming soon.

As Henry and I discuss in the accompanying video, there's a legitimate debate to be had about the shape and structure of the stimulus package, and whether a second is really necessary. But what's mostly going on here is an effort by both parties to shape the public's perception, which is often synonymous with reality -- especially in Washington D.C.

In other words, it's just politics. As usual.

138 Comments

madmilker
madmilker - Monday July 13, 2009 02:22PM EDT

in tat picture...looks like he's pointing tat finger again....tats rude!

you
Yahoo! Finance User - Monday July 13, 2009 02:24PM EDT

will the willing WaPo obama op ed? unusual? LOLOLOL hardly the will state run lib media for obama... Obama has failed..9.5% unemployment? where are the SHOVEL READY JOBS????? HE PROMISED LOLOLOL... obama LOST 2 million jobs already ....heckle and jeckle here are two obama lovers covering up for obama.. lolol...obama LIED with his stimulus working ... STIMULUS IS ONLY TO PAY OFF OBAMA SUPPORTERS... JUST LIKE ACORN... his thugs and goons in ACORN need billions of $$ to get obama reelected... Biden ADMITS THE ADMIN IS TOTALLY LOST ... but they are getting socialism... bawhahahahahahahahhahahaha.... obama bubble is bursting....biden is TOO STUPID TO TRY A TRIAL BALLOON.... LOL

madmilker
madmilker - Monday July 13, 2009 02:27PM EDT

in tat picture it looks like he is pointing tat finger again....tats rude!

you
Yahoo! Finance User - Monday July 13, 2009 02:29PM EDT

obama has NO credibility... he is just a socialist wanting to run America into the ground for his own personal gain..when did obama say it would take years and years and years to fix the economy when running for potus??? BAWHAHAHAHAHH... nobody believes it will be fixed overnight dufooses... BUT, OBAMA IS DOING MORE HARM WITH THE STIMULUS FOR ACORN .... obama is harming the economy not helping it.. idiots.... FREEZE PAYROLL TAXES, CUT CAP GAIN. ... DRASTIC TAX CUTS... let small business alone... BUT NOPE... OBAMA WANTS MORE TAXES HIGHER TAXES, DULLARDS.. IT AIN'T WORKING OBAMA ...WHITNEY HAS IT 13% UNEMPLOYMENT IS COMING.. (THAT'S A LITTLE LOW).... HOPE AND CHANGE MORONS, HOPE AND CHANGE

you
Yahoo! Finance User - Monday July 13, 2009 02:30PM EDT

HEY, don't have a job?.... have patience obama says... wait just a couple more years... let em eat cake

you
- Monday July 13, 2009 02:35PM EDT

No change Bush-Obama the same even worse!!!!!!!!!!!!!

Sensible
Sensible - Monday July 13, 2009 02:37PM EDT

It's simple. He admitted he never read it before signing it so how can you defend it?

roger
roger - Monday July 13, 2009 02:40PM EDT

More double talk.. Don't trust the man.. never did.... Q: What's the Biggest Lie Ever Told? A: Hi! Where Here From The Goverment and We Want To Help You! (Just ask a Native American..)

you
Yahoo! Finance User - Monday July 13, 2009 02:41PM EDT

Left Right - they are all the same. Left-Right Paradigm Audit the Federal Reserve Now!

Roger F
Roger F - Monday July 13, 2009 02:41PM EDT

Obaba, is just tring to save face. This is just another bull shi* deal. He is the best used car salesman I have ever saw. His team will say anything to save face, they are going to draw out the plan so the economy will recover on its' own. We are going to get screwed by this, when it fails, he will say it is because one or more of his projects didn't get passed. We can not afford all his programs if we are not working and there is no jobs to be found. I don't know about everyone but, I can't wait to get a job until 2016, can anyone. He and the rest of them CROOKS need to stay home and speed this crap up if I'm ever going to buy this horse crap. He and Crngress are traveling all over the world giving away our tax money to help others, we need to spend that money RIGHT HERE AT HOME. When we are set and running good with LOW unemployment ect.. then we'll talk about helping others.

Douglas
Douglas - Monday July 13, 2009 02:41PM EDT

Stimulas must be from the the grass roots - quit bailing out industry from the top down. The collective investments from individual citizens will stimulate growth. There are so many laws that tie the hands of individuals. If you want a green enconomy write a progressive net metering law which through the collective action of individuals, will allow people to be fairly compensated for energy produced by solar panels and wind turbines. Distributive Energy production is the "energy internet" of the future.

Roger F
Roger F - Monday July 13, 2009 02:42PM EDT

Obaba, is just tring to save face. This is just another bull shi* deal. He is the best used car salesman I have ever saw. His team will say anything to save face, they are going to draw out the plan so the economy will recover on its' own. We are going to get screwed by this, when it fails, he will say it is because one or more of his projects didn't get passed. We can not afford all his programs if we are not working and there is no jobs to be found. I don't know about everyone but, I can't wait to get a job until 2016, can anyone. He and the rest of them CROOKS need to stay home and speed this crap up if I'm ever going to buy this horse crap. He and Crngress are traveling all over the world giving away our tax money to help others, we need to spend that money RIGHT HERE AT HOME. When we are set and running good with LOW unemployment ect.. then we'll talk about helping others.

you
Yahoo! Finance User - Monday July 13, 2009 02:43PM EDT

Of course the stimulus didn't work, that's because there was no stimulus in the bill to begin with just a bunch of pork spending big surprise! When will Obama and the liberal Democrats own this economy! The MSM in this country refuses to hold Obama's feet to the fire! The stock market will not recover until this anti-business liberal administration gets booted in 2012! -THE CONSERVATIVE RESISTANCE "long live the resistance!"

you
Yahoo! Finance User - Monday July 13, 2009 02:43PM EDT

Without manufacturing jobs- this recession will grow. Start taxing imports and companies that manufacturer overseas should pay higher taxes.

you
Yahoo! Finance User - Monday July 13, 2009 02:43PM EDT

Without manufacturing jobs- this recession will grow. Start taxing imports and companies that manufacturer overseas should pay higher taxes.

Douglas
Douglas - Monday July 13, 2009 02:44PM EDT

. An effective national net metering policy would give citizens the right to choose distributive renewable energy as an alternative. Thousands of green energy investments would suddenly expand the economy, create jobs, reduce carbon emissions and lesson our dependence on foreign energy. The collective investments of thousands would work just like a shovel-ready TARP project but without TARP.

you
Yahoo! Finance User - Monday July 13, 2009 02:44PM EDT

Create manufacturing jobs or else this country will fold. Start taxing imports and companies that ship jobs overseas.

you
Yahoo! Finance User - Monday July 13, 2009 02:48PM EDT

So, Obama's lost 2 million jobs, eh? Bush lost 4 million, but he's the good guy, right? Obama's the socialist, but Bush increased the size of government more than any other President except for Roosevelt. If you look at the private sector, Bush lost 2 million jobs in his first term, and another 5 million in his second. But if you factor in the government jobs, he CREATED jobs in his first term and only lost 4 million in his second. But OBAMA's the big government socialist??? Where were the Republicans??? I want my party back!!!

you
Yahoo! Finance User - Monday July 13, 2009 02:51PM EDT

Could this happen with a 9.4% jobless rate and a all-but-certain 11% rate before the year end? Could this happen with a 130 debt to income ratio? Could this happen with a $13.87 trillion net worth destruction of the US Households based on our own Fed Fund Report since Q3 2007? Could this happen with a synchronized global race to the bottom featured by the upcoming SPECTACULAR collapse of fraudulent economy of People's Republic of China (their days are numbered. You shoud not be surprised when I say their economy will collapse in less than 600 days) if you have ever come to a slight realization of their loan losses. The latest breath-taking fraud is, "New Chinese bank lending for June was 1.53 trillion yuan ($224 billion), double the lending in May. The total already for the year is an astounding 7.4 trillion yuan when the target for the entire year was 5 trillion. World Bank endorsed the modified-communist fraudster by inexplicably tagging the fraudulent GDP at $3.38 trillion. If you hold your nose tightly, it would be a 30% GDP so far! ******* One more set of numbers to crunch: the pork barrol stimulus spending of $800 billion will be very ineffcient and wasteful. Have you followed the "Big Dig" in Boston? Have you driven through that mess both literally and figuratively? Is it for a fact that the stimulus funds have been very slow to deploy and will go on for at least 2 more years? Can that win a food race with ever increasing jobless rate and a $13.87 trillion net worth destruction and counting??? Conclusion: In this case, Schiller's "BUT COULD go down a lot" should be safely revised to "Most likely will go down a lot". I would lean more toward Gary Shilling's $40 S&P EPS, although I can see it is still too generous. The best prediction is the future is unpreditable; But it does not mean conditions cannot induce the inevitable. This is a not a paradox becuase the latter requires you to simply include ALL determining variables in a specific set of relationship or relationships. If you have a 6 month to 12 month horizon, the likelihoods of successful selling at these price levels are simply overwhelming.

Its all about ME
Its all about ME - Monday July 13, 2009 02:56PM EDT

Hey, I dont know if this is a problem or not, but the China Kitched just down the street put up a new sigh. " JUST GOOD HOME COOKING " hey wait a fat second!!! wa do you think???

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