Stimulus Worked: Economists

Good news for prez ahead of today's job-loss report
By Matt Cantor,  Newser User
Posted Aug 7, 2009 10:14 AM CDT
Vice President Joe Biden, accompanied by Council of Economic Advisers Christina Romer, speaks about the economy with reporters, Friday, June 5, 2009.   (AP Photo/Ron Edmonds)
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(Newser) – President Obama’s stimulus package appears to have helped the economy bottom out more swiftly, an economists’ report says. Analysts hold that the stimulus boosted economic growth by about a percentage point in the second quarter—not enough to keep the economy from shrinking but enough to slow the pace of decline, reports the New York Times.

“The signs of the stimulus are there,” said one economist. “Government—federal, state and local—is helping take the economy from recession to recovery. I think it’s the primary contributor.” The report notes, however, that the stimulus tax cuts weren’t particularly helpful since people saved them or used them to pay debts instead of rushing out to spend.