The Stimulus Worked

In non-partisan economic circles there’s very little debate that the federal stimulus passed last year had a positive effect on the economy.

Where Obama and Co. got themselves into hot water was their underestimation, at the time the stimulus bill was being promoted, of the recession’s severity. Had the administration correctly forecasted potential unemployment the public would have a greater appreciation for how well the stimulus worked.

If you prefer to listen to someone explain why the stimulus worked, here’s economist Mark Zandi from Moody’s Economy.com

By the way, I have not encountered any Ghanaians who are aware of the US recession. And quite frankly, while I know it has devastated millions of American families, I have a difficult time remembering that when I’m faced each day with the struggles of the average Ghanaian: Like students who do not return to school for the term because their family can not afford the boarding and tuition fees (less than $200); Women who sleep in the open air on benches along the market streets so they can be next to their “store” (essentially a 4-foot tall wooden box, sometimes with an umbrella above it) incase someone wishes to make a purchase; Young men who are on the streets at dawn pulling large carts of coconuts to the spot along the road where they will sell them all day long, hacking the top open with a machete and handing them to passing motorists for 30 cents each; And children of all ages darting between cars at busy intersections and highway on and off-ramps selling gum, water, and candy from platters or bowls placed confidently atop their head, each sale clearing a profit of perhaps 3 to 5 cents.

Yes, the recession in the US has been severe, but life here is much, much different.