Friday, January 29, 2010

There you go again . . .

Oh, here goes the White House again with misleading correlations about the huge 5.7% growth in the economy in the 4th quarter, 2009.

I think stimulus was key to the 4th quarter. It was really critical to business fixed investment because there was a tax bonus depreciation in the stimulus that expired in December and juiced up fixed investment. And also, it was very critical to housing and residential investment because of the housing tax credit. And the decline in government spending would have been measurably greater without the money from the stimulus. So the stimulus was very, very important in the 4th quarter.

Oh, wait. That's former McCain campaign advisor economist Mark Zandi? Cool.

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