September 3rd, 2009
11:41 AM ET
5 years ago

Biden credits stimulus plan with sparking economic recovery

Vice President Joe Biden trumpeted the role of the stimulus package in sparking an economic recovery.
Vice President Joe Biden trumpeted the role of the stimulus package in sparking an economic recovery.

WASHINGTON (CNN) - Vice President Joe Biden trumpeted the role of the administration's $787 billion stimulus package Thursday in sparking an economic recovery.

"There is a growing consensus: the recovery act is working," he told an audience at the Brookings Institute.

"Instead of talking about the beginning of a depression, we are talking about the end of a recession."

The stimulus plan, enacted almost 200 days ago, "is doing more faster and more efficiently and more effectively than most people expected," he argued.

The vice president, who is overseeing the implementation of the plan, cited multiple independent analysts who claim the stimulus plan has created or saved between 500,000 and 750,000 jobs.

Economists from Goldman Sachs, he noted, believe the recovery plan added over 2 percentage points in growth to the country's gross domestic product in the second quarter of 2009.

They believe it will add 3.3 points in the third quarter, he added.

The Republican National Committee sharply disputed Biden's claims, releasing a statement characterizing the stimulus plan as a failure.

"The Democrats' rhetoric on their economic experiment doesn't match with the reality of millions of Americans remaining unemployed," the statement said. "The stimulus was an economic experiment that failed."

Most Americans remain pessimistic about the state of the economy. Nearly nine in 10 believe the country is still in a recession, according to an August 28-31 CNN/Opinion Research Corporation poll.

Almost 40 percent of Americans believe the Obama administration's policies have improved economic conditions. Thirty-four percent believe Obama's policies have worsened the economic climate, while 27 percent believe they have had no effect.

Altogether, employers have announced over 1,070,000 job cuts so far this year - 60 percent more than at this point a year ago. The current tally is less than 200,000 away from surpassing the total number of job cuts in all of 2008.

The Labor Department's monthly jobs report, due Friday, is expected to show that the economy shed 265,000 jobs in August, slightly more than the 247,000 reported for July, according to a consensus estimate of economists compiled by the Web site Briefing.com.

The unemployment rate is predicted to rise from 9.4 to 9.5 percent.

–CNN's Jessica Dickler contributed to this report


Filed under: Economy • Joe Biden • Popular Posts
soundoff (184 Responses)
  1. Sam

    Stop the SPIN!!! The Stimulus was lots of PORK, the economy will recover when all the companies dishing out bad loans write them off and start loaning money to people who can repay it, not just everyone. Other businesses need to correct their poor business practices also! The govt does not need to own private industry. That is called SOCIALISM!!! CONGRESS needs to write good laws instead of special interest. If the Dems want Healthcare reform, all govt employees including the President, Congress and the Supreme Court use the basic health care service, not their special elitist programs. We can NOT afford 9 trillion dollars of debt. We can't afford a political party that thinks its ok to go from 1.2 trillion in debt to 9 trillion. We can't afford the taxes to pay the interest. There is no lie and no spin here. Just tell the truth.

    September 3, 2009 02:46 pm at 2:46 pm |
  2. Rick

    Although unemployment is still bad it would probably be around 12% had it not been for the stimulus. States for one would have had to lay off thousands more. Obama wouldn't have had to do the stimulus if George Bush not screwed things up so bad. He was the worst president of my lifetime and that is even including that idiot Ronald Reagan. The debt that republicans are so worried about was growing greatly under Bush and yeah Obama has to continue it until we get out of this hole. You don't slow up spening during the worse recession since the great depression. God bless Obama

    September 3, 2009 02:46 pm at 2:46 pm |
  3. Bruce

    What a load of crap biden is. There is very litle stimulus money that even got out. It got bogged down in regulations. If we are starting to pull out of this recession, which I truly doubt, then it was the market that bounced back and had absolutely NOTHING to do with the stimulus package, or lack of.

    September 3, 2009 02:48 pm at 2:48 pm |
  4. Nick

    The Republican recession ended in July. The GDP will be up ~3.5% in this third quarter. That is GREAT news.

    The Republicans are clueless and they will say that EVERYTHING done by a Democrat is a failure. They wanted to do nothing to soften their recession – to let Americans suffer years longer. The stimulus is less than halfway finished, so it will have even more impact in the future.

    I find it amazing that most Americans don't even know that they were the beneficiaries of the largest income tax cut in history and that came from the stimulus bill.

    Yes, we need more jobs, but we all know or should know that jobs are the last thing to return to normal after a recession. Those who lost jobs should know that the Obama administration has done everything possible to shorten the Republican recession so they can get new jobs sooner.

    The Republican recession ended as much as a year before some economists predicted. It certainly did not end later than anyone predicted. We can only credit Obama and his people.

    September 3, 2009 02:49 pm at 2:49 pm |
  5. Jon in CA

    Joe Biden is so out of touch... he has to LIE about meeting constituents at Katie's Restaurant (Palin/Biden debate).

    Katie's closed it's doors IN THE 80'S!!!

    Biden = baffoon

    September 3, 2009 02:50 pm at 2:50 pm |
  6. bess

    Thanks Joe. We needed a good laugh today.

    September 3, 2009 02:52 pm at 2:52 pm |
  7. Jimmy the Greek

    WHAT??? The recession is ending???

    FANTASTIC!!

    Freeze the remaining "stimulous" money, sell GM, and stop using "WE'RE IN A CRISIS" as justification for more government takoevers!!!

    September 3, 2009 02:54 pm at 2:54 pm |
  8. Tom Dissento

    According to my friends in the construction industry, it's starting to work well. I know three people who are working directly on stimulus-related projects: a school renovation, a police station repair job, and repairing a decaying bridge over I-91.

    September 3, 2009 02:54 pm at 2:54 pm |
  9. Me

    What economic recovery? The almost 10% unemployment? The rising inflation? The almost non-existant GDP growth lagging behind Japan, China, and half of Europe? The negative job creation? What recovery?

    September 3, 2009 02:54 pm at 2:54 pm |
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