So, remember when the GOP declared–prematurely–that the stimulus failed?
Well, guess who spoke too soon:
Recession eases; GDP dip smaller than expected
Economy dips at 1 percent pace in 2Q, sign recession may be finally drawing to a close
The economy sank at a pace of just 1 percent in the second quarter of the year, a new government report shows. It was a better-than-expected showing that provided the strongest signal yet that the longest recession since World War II is finally winding down.
The dip in gross domestic product for the April-to-June period, reported by the Commerce Department on Friday, comes after the economy was in a free fall, tumbling at an annual rate of 6.4 percent in the first three months of this year. That was the sharpest downhill slide in nearly three decades.
Less drastic spending cuts by businesses, a resumption of spending by federal and local governments and an improved trade picture were key forces behind the better performance.
Federal Reserve Chairman Ben Bernanke has said he thinks the recession will end later this year. And many analysts think the economy will start to grow again — perhaps at around a 1.5 percent pace — in the July-to-September quarter. That would be anemic growth by historical measures, but it would signal that the downturn has ended.
Obama’s stimulus package of tax cuts and increased government spending provided some support to second-quarter economic activity. But it will have more impact through the second half of this year and will carry a bigger punch in 2010, economists said.
More after the jump…
Unemployment is still high but–thanks to the Democratic stimulus package–the economic free-fall has stopped and the economy will continue to improve in the months to come.
President Obama and the Democrats made a tough decision in passing the stimulus over the GOP’s objections, but it turns out to have been the right decision–the (Republican-created) financial crisis has come to an end.
Just one more justification for why the Democrats are the majority and the Republicans are the minority–Democrats do what needs to be done while the GOP sits around, engaging in petty politicking and pointless demagoguery. I’m looking forward to 2010, when Democrats across the country will be (rightfully) claiming credit for reversing the economic meltdown while the GOP will have nothing but obstinance and failed rhetoric to run on.