When considering the latest study from Mark Zandi on the GOP’s efforts to rein in government spending, let’s not forget that he was the chief architect of the Democrats’ failed stimulus plan. Even as unemployment climbed into the double digits, Mr. Zandi continued to defend this failed policy. It shouldn’t come as a surprise that he would come out against the GOP’s common-sense efforts to put an end to more stimulus-style spending.
- Zandi Has Been Labeled The Oracle Of Stimulus. The economist pinpoints a paper he delivered at a Brookings Institution forum in January 2008, as his debut as the oracle of stimulus. Titled "Assessing the Macro Economic Impact of Fiscal Stimulus 2008," the report showed the GDP impact of individual measures, the effect on employment and the potential cost of inaction. All remain standard features of Zandi presentations. (The Washington Post, 2/3/09)
- Zandi Called For More Stimulus In March 2009 ... Less Than 30 Days After The Initial Stimulus Was Signed Into Law. “Policymakers need to do more. I don't think we're done," said Mark Zandi, chief economist at Moody's Economy.com, who has been advising House Democrats. "I think another stimulus package is a reasonable probability, given the way things are going.” (The Washington Post, 3/11/09)
- Zandi Declared That After Spending $787 Billion (Now $821 Billion) A Peak Unemployment Rate Of 10.5% Would Be A “Reasonable Expectation.” Zandi, one of the foremost economists cited by the Obama administration and Congress during the push for the $787 billion economic stimulus package in February, argued that despite the dismal economic predictions the recovery package was still a success and has prevented a massive problem from becoming even worse. "10.5 percent is a very reasonable expectation for the peak in unemployment, but I think it would be measurably higher if not for the stimulus package," Zandi said. "The stimulus in my view is working. It's just gotten overwhelmed by the magnitude of the economic crisis." (Fox News, 10/11/09)
Reminder: After spending $821 billion on a failed stimulus, the unemployment rate has remained at 9% or higher for the past 21 months.
To view the projected unemployment rate to the actual unemployment rate click HERE