Schrader TV comment: Faltering on the stimulus

A year ago on KGW-TV Kurt Schrader gave the stimulus a ranking of a “nine.” (link here). He said ““I give it a nine. There’s jobs being created and retained like never before… This is what the government is supposed to do for you.”

Fast forward to last weekend on Straight Talk, Kurt Schrader had second thoughts and said he’d now give the stimulus an “eight.” Schrader said, “I’d probably still give it at least an eight or so. I would have liked things to roll out a little quicker. I’d have liked to be out of the recession a little sooner.”

Alee Lockman, spokeswoman for the Scott Bruun for Congress campaign said “Kurt Schrader has finally realized his support of the failed stimulus is going to cost him votes this fall. Oregonians would like to be out of the recession a little sooner too, but unlike Schrader, they aren’t placing their hope in more government spending and Nancy Pelosi. As Oregonians become increasingly dissatisfied with the failures of the stimulus and the mounting deficit, will Kurt Schrader’s rating of the stimulus continue to decrease?”

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Posted by at 11:38 | Posted in Measure 37 | 9 Comments |Email This Post Email This Post |Print This Post Print This Post
  • Bob Clark

    My view as the proverbial two handed economist is the first round of bank bailouts in the latter half of ’08, and reinforced by the incoming Bama administration, was necessary to stave off a run on the banks scenario. So, this slug of government intervention was totally necessary. However, the subsequent stimulus has been largely ineffective because such stimulus has left investors, businesses, and consumers with less confidence in the economy. The worry became what will happen when such stimulus is withdrawn, and will it have to be repaid in the form of higher taxes or inflation in the near to medium term. So, the second round of stimulus (the $800 million) hasn’t really worked because of the degree of existing indebtness of the U.S government. Keynsian economics may be constrained by existing public indebtness, lowering the sense of wealth among economic actors and thereby confidence. Japan has tried the Keynsian route with muted results as consumers tend to save any stimulus they receive for lack of confidence in their economy.

    • valley p

      “So, the second round of stimulus (the $800 million) hasn’t really worked because of the degree of existing indebtness of the U.S government. Keynsian economics may be constrained by existing public indebtness, lowering the sense of wealth among economic actors and thereby confidence”

      The latest CBO analysis disagrees with you and agrees with Schrader. The “stimulus” bill added 2-5 points to the GDP and several million jobs. Corporate profits are at highs, and consumer spending is up, so all this about “confidence” is a red herring.

      As predicted by Krugman and others, the $750B stiumulus was only about half of what it needed to be to get unemployment down to tolerable levels.

  • Bob Clark

    Oops. That should’ve been $800 billion, and not $800 million.

    • Rupert in Springfield

      In my opinion you are right about much of this. The stimulus left investors nervous about the debt and how the country was going into and how to pay for it. This combined with Obamas propensity to look for tax solutions rather than growth solutions has left companies and investors worried that a tax increase was in the offing and thus we see the retention of corporate profits to record levels.

      The uncertainty was compounded by the possible expiration of the Bush tax cuts, along with the continued manipulation of the housing market by Fmae and Fmac repeating the mistakes of the past in the recent financial reform bill along with the uncertain future costs and tax implications of Obamacare.

      Not a lot of this is news and in fact is fairly obvious. Obama would do well to settle the Bush tax cut expiration issue one way or the other post haste. His recent talk about renewing the cuts, just not for upper income earners is a belated but good step in the right direction.

      • valley p

        “His recent talk about renewing the cuts, just not for upper income earners is a belated but good step in the right direction. ”

        His recent talk? He campaigned on that and has been consistent on it ever since being elected. Its Mitch McConnell and the Republicans who are now introducing “uncertainty” by hinting they will oppose any effort to extend the tax cuts if they don’t include their rich donors. Maybe you guys should take your “uncertainty” case up with them.

        As for the deficit. Its easy to fix. Don’t extend any of the tax cuts, bring the troops home and the current deficit is pretty much gone. Piece of cake.

        • Rupert in Springfield

          >As for the deficit. Its easy to fix. Don’t extend any of the tax cuts

          No it wouldn’t you utter idiot. The deficit is around $1.7T annually, the tax cuts amount to a fraction of that, even using static projections.

          Please – again I beg you – do not enter into economic discussions as you constantly do pop offs like this that indicate a complete lack of understanding of the material.

          Im not an economist, but even a casual observer has more sense and knowledge than you on this sort of thing.

          • valley p

            I may be an idiot, but I’m smart enough to know that much of the current deficit is due to stimulus spending, which ends after this FY, and residual TARP spending, which also ends.

            Eliminating the Bush tax cuts, all of them, would bring the annual deficit down to only $350 billion in 2015 according to the CBO. Ending both wars and briging the troops home would take care of most of the remaining $350B.

            You want a balanced budget or do you want 2 unfunded wars and continued tax cuts? Its a choice Rupert. Bush made his choice and broke the economy. What is yours? What is your party’s? Are you guys fiscally responsible or aren’t you? You have a great chance to prove it.

            “Please – again I beg you – do not enter into economic discussions”

            Begging won’t help Rupert. Try a dose of fiscal reality instead.

            “Im not an economist, but even a casual observer has more sense and knowledge than you on this sort of thing. ”

            No, you aren’t. And apparently you don’t qualify as a casual observer either. You do qualify as math challenged.

  • paul

    It is commendable that Schrader has helped some vets with a particular disease, but it would be nice if he helped the rest of us by NOT voting for every tax and spend bill Pelosi can dream up.
    I would like to see Scott Bruun replace Schrader and stand up for the majority of us in Oregon.

  • Woody

    As a sign-maker I can attest to the stimulus helping with jobs. We have been so busy making signs about the projects we are very, very profitable this year.

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