Economists are now calling for further stimulus spending in Obama's new jobs creation plan, the one the GOP has labeled "son of stimulus". Michael Hanson, senior economist at Bank of America and a former Federal Reserve economist, says that Obama's proposed Social Security tax cuts alone would add 1 percentage point to economic growth and create 1 million jobs a year, lowering unemployment by half a percentage point by 2012. The reason is that Social Security taxes would be cut on the first $5 million of a business' revenue, giving small businesses room to breathe while larger businesses, that have been much quicker to recover, will continue to pay in. As much as the GOP will try to characterize stimulus spending as short-sighted "big government" policy making, the facts do not support it. Unfortunately, many of their campaigns are short on facts and long on rhetoric, but it doesn't seem to bother their constituency much. The best thing for Washington to do right now, as President Obama said, "you should pass it."
Once Again, Obama's Stimulus Worked. It Just Didn't Work Enough
Obama's stimulus created millions of jobs, it just wasn't large enough to "do the job" of speeding up the recovery.
immediate effectiveness of The Recovery Act. When the bill was signed in February of 2009 there was an immediate uptick in monthly job growth while unemployment rate, which had been growing dramatically through 2008, suddenly stabilized. In addition, GDP shrank only one more quarter before growing, albeit slowly, every quarter afterward.