Updates from Yesterday

Yesterday the ‘White House Council of Economic Advisors’, headed by Berekley economist Christina Romer, announced that” one million more people would have been out of work in August without programs funded by the $787 billion Stimulus Plan.”
A similar announcement given by ‘WeightWatchers of America’, also yesterday, said “their membership would have gained 10 billion more pounds this year without the aid of their nutrition programs.”

Other economists have speculated each announcement has the same probibility of being true.

And on another front, Carol Browner, the Director of the White House Office of Energy & Climate Change, has failed again. Yesterday NASA had to cancel yet another shuttle landing in Florida due to inclimate weather. Since assuming her new title and position Ms Browner has repeated allowed the Florida weather to interfere with both the launches and landings of the shuttle program. Some in Congress are calling for an investigation.

Comments

  1. What are the odds of having millions of healthcare events that supposedly don’t take place now occur in the future and not one single dime added to the deficit? I would say this is true because, most likely, trillions and trillions of dimes will be added.

  2. Randy in Richmond says:

    Leapin
    We must have consulted the same statistician.

  3. Romer’s estimates are probably pretty close and her numbers will be accepted, more or less, by most economists. That being said, the effectiveness of this package is going to be underwhelming as it was not infrastructure intensive and much too small to bring us back to anything near full employment. Her boss is going to pay dearly for her underestimation of the deteriorating labor market back in January.

  4. That was me.

  5. Randy in Richmond says:

    Other than in certain defined areas they don’t have a clue. I will agree that state and local governments have maintained their work forces but what will they do next year, and the year after. Predicting, and that’s what it is, saved jobs is next to impossible.

  6. State and local gvernments have not maintained their work forces in most states. They’re shedding jobs too as tax receipts have collapsed and federal funds have failed to fill the gap.

    Randy, government spending creates/saves jobs by pumping dollars into the economy, therefor, offsetting a portion of private demand. This is a fact. Many people take issue with government deficit spending to boost aggregate demand but all agree that it will, even if temporary, create/sustain jobs. Can you predict saved jobs? Not exactly. But you can calculate the improvement in GDP with stimulus and then calculate job creation from those numbers with relative accuracy.

  7. Randy in Richmond says:

    Strupp
    You can take it up with the Committee. I base the government work force statement on their conclusions, such as:
    As states reduced budget cuts, we would expect to see fewer layoffs in the areas of public safety, education, health care, and other sectors where state governments provide large amounts of financial support.” They show a graph to support this and then state:
    The figure shows that states that received more dollars in fiscal transfers added or saved more jobs in these sectors.
    This was the basis for my statement in the post and I stand by it , even though it has no bearing on the point I was making.