About the only talking point Joe Biden didn’t repeat in his debate with Paul; Ryan was the one lionizing President Obama for having saved the country from another great depression.
He credited the president with having prevented a second great depression.
What’s surprising is that republicans, conservatives and the media have done so little to stash the Obama as savior claim in the attic of political untruths.
President saved us in an empty boast. The stimulus package enacted in February as evidence for the claim. The recession officially ended in June 2009—at a time when only a fraction of the $831 billion in stimulus funds had been spent.
The gross domestic product (GDP) shrank 12% during the 2007-2009 recession. “the largest estimates of the effect of the Obama stimulus is about 3.5%”. :The great depressant was a 40% ‘recession’”. The math disproves the Obama claim. James Pethokoukis, the American Enterprise Institute noted the drop in GDP ended in December. “ The big break happened before the stimulus was passed”. It occurred before Obama had taken office. If there was a threat of a depression, it was gone. Unemployment continued to grow for a few months but it’s a lagging indicator.
Economists weren’t predicting a Depression. Obama’s economics, surveying the economy as he entered the White House, didn’t see any indication of one. Nor did the CBO. Obama’s program wasn’t unique, except in its failure to spark a strong recovery. If anyone is responsible for averting a financial disaster, it’s the much-maligned chairman of the Federal Reserve, Ben Bernanke. He acted early and often to prevent a catastrophic collapse, with remarkable success.
After Bear Stearns collapsed in March 2008, Bernanke opened the Fed’s discount window—with its cheap loans—to non-commercial banks like Goldman and Morgan. After Lehman went under in Sept. 2008 Bernanke was instrumental in creating the $700 billion TARP that kept the big banks alive.
So in Dec. 2008, a full month before Obama was inaugurated, the Bernanke Fed cut interest rates near zero. Obama claims all the credit for himself for saving the economy.
Because the economic recovery is so sickly, Bernanke has been forced to step in again, this time to rescue Obama from his wrongheaded policies. To stave off a new recession, he has eased nometary policy three times—QE1, QE2, QE3—by buying trillions in governmental-held mortgages and bonds at the risk of higher inflation.
Obama was to create conditions conducive to a sharp snap-back form the recession. He hasn’t done this, Bernanke job was to stop the economic free-fall in 2008. He did that
Source—weekly standard, Fred Barnes.