Wednesday, May 26, 2010

Stimulus from Across the Pond

My attention has been drawn (thanks to James at Baseline Scenario) to some of the first estimates of the effect of the American Recovery and Reinvestment Act of 2009 (a $787 stimulus bill) on the US economy. I thought I'd repeat a few of the major achievements of the act:
  •  Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.2 percent,
  •  Lowered the unemployment rate by between 0.7 percentage points and 1.5 percentage points,
  •  Increased the number of people employed by between 1.2 million and 2.8 million, and
  •  Increased the number of full-time-equivalent jobs by 1.8 million to 4.1 million compared with what those amounts would have been otherwise.
Seems to emphasise the point that in times of trouble, stimulus is the way to go.

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