Economists agree that the current recession ranks with the worst economic crises since World War II, and that it is taking a terrible toll on most Americans.
But analysts disagree about the effectiveness of recent federal efforts to mitigate the recession’s effects, especially for the most vulnerable individuals and families.
In a new research brief, Brookings Institution economist and Institute for Research on Poverty affiliate Gary Burtless presents his report card for antipoverty initiatives of the Obama Administration and Congress, such as the American Recovery and Reinvestment Act; and the Worker, Home Ownership, and Business Assistance Act.
Burtless notes that a majority of respondents tell pollsters they think the stimulus package has either made no difference to the economy or has actually made things worse, and he argues that this assessment is wrong.
Net household incomes and consumption are higher than they would have been without the stimulus, and essential state spending on benefits to the poor, health insurance, and education is higher than would have been the case without the federal aid.
If Congress had rejected the Obama Administration’s stimulus package the recovery would have begun later and joblessness would have increased faster.
Even if the general public is unwilling to give the stimulus program even a gentleman’s C, most economists, including Burtless, think it deserves at least a B+.