Reflections on the recession the day after Obama addresses Congress

I am tired of all politicians talkiing like there is some kind of magic bullet for ending the recession - more stimulus, less regulation, lower taxrs, green energy development, corporate tax holidays.




The plain truth is that recessions are part of the business cycle and will end when it ends. Here is an analysis of US recessions since 1819 http://www.e-investing.in/world-economy/1749-us-recessions-observation.html In the last 200 years most recessions caused by systemic financial crisis have lasted much longer than recessions caused by other factors.



Whatever policy is in place when the recession ends, the proponents of that policy will take credit for ending the recession.



John, you are currently calling the 2009 Stimulus plan a failure because it didn't end the recession. (Funny that you are smarter than the CBO http://www.cbo.gov/ftpdocs/123xx/doc12385/08-24-ARRA.pdf who feels the stimulus did provide some employment and helped avoid a more serious financial breakdown). If we are in a 6 year recession then don't expect it to end before its time. Also, unfortunately, don't expect any politician to tell you this truth.



This being the case why do I feel the first stimulus was worth it and the new stimulus will be worthwhile? Because people are suffering and the stimulus helps the people hardest hit by the recession.



HuffPost approached 10 republican senators about Obama's proposal to reduce the payroll tax and only two, McCain and Brown responded. Both said they supported the tax cut but only on the employer's portion, not the employee portion. Their reason was to give employers more money to hire additional workers. This is complete BS. Everyone knows employers aren't hiring because there is a lack of demand. Most companies are sitting on money. The economy is awash with capital. The problem is that employers are willing to use it now.



I am tired of the argument that government stimulus only prolongs the recession, that the New Deal caused the depression, that Hoover just needed a little more time before the free market would work its magic and find jobs for everyone.



Say what you want about FDR and the New Deal. The people who benefited from FDR's Nes Deal were grateful to him for the rest of their lives. They believed he made their lives better. He made it possible for the unemployyed to find jobs and feed their families. He gave them hope that things would get better.



There are millions who have lost the livelihood and their homes who could use a little hope right now too