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

Biden credits stimulus plan with sparking economic recovery

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/09/03/art.biden.0903.gi.jpg
caption="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. Ken

    So, the government spent $787 billion and saved/created 750,000 jobs. In other words, for every $1.05 million dollars spent, 1 (ONE) job was saved/created. Amazing. Kudos to the government for a well-planned attack against job losses.

    September 3, 2009 12:32 pm at 12:32 pm |
  2. gg

    I think this guy is not smart enough, maybe he just need to shut his mouth.

    September 3, 2009 12:32 pm at 12:32 pm |
  3. panem et circenses, but CNN won't post

    "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."

    Is this the same Goldman Sachs that got $12,000,000,000 in bailout money? Credibility problem there, don't you think? And a real journalist would have pointed this out.

    So if "we are talking about the end of a recession" let's not spend the 88% of the $787 billion, that's $692,560,000,000 ($692 billion), that hasn't yet been spent! That only 12% of the money has been spent so far is relevant and something else a real journalist would have pointed out.

    Journalism at CNN is dead.

    September 3, 2009 12:34 pm at 12:34 pm |
  4. mike

    9.5 % unemployment. Change we can believe in.

    September 3, 2009 12:34 pm at 12:34 pm |
  5. David, Silver Spring, MD

    The real test of the Recovery and Reinvestment Act will not be its impact on unemployment figures at the end of 2009, it will be its impact on U.S. competitiveness in the global economy in five to ten years.

    Investments in green energy and road repair may not put as many people "back to work" as grants to the local WalMart for youth employment programs, but they have a far more beneficial long-term impact on the health of the country and its citizens.

    September 3, 2009 12:34 pm at 12:34 pm |
  6. Shari, NY

    A friend of mine suddenly got a job after two years without one. I believe there is hope. I vividly remember the president stating from the begining of his tenure that things were in such a sorry state that (based on economic projections) it would take his ENTIRE TERM to turn things around. Of course, those who have memory lapses/losses will not remember this.

    September 3, 2009 12:35 pm at 12:35 pm |
  7. vic nashville , Tn

    Obama Administration doing best they can time for republicans to work with Obama

    September 3, 2009 12:35 pm at 12:35 pm |
  8. Mississippi Mike

    Um, what recovery? The unemployment rate is still expected to rise. The "recovery" he is mentioning is a slowing of economic decline. We're not talking about economic growth, just a slowing in the decline. It's clear that Democrats have no understanding of economics but this is absurd. Slow Joe needs to go!

    September 3, 2009 12:36 pm at 12:36 pm |
  9. Dan, WA

    This guy is a nut. Problem is our President has no idea what is going on and then comes Joe Biden to give a lecture. They are all out of touch with the general public and they want to pass anything through our throats. I hope American people will realize such a big mistake where they have put not only our lives at risk but also several generations.It is time for Barack and Joe to go to school to learn about presidency and how to manage it. This shows their lack of experience, judgment and everything. May God save us from this situation.

    September 3, 2009 12:36 pm at 12:36 pm |
  10. Scott, Tucson

    And just what planet is Joe living on?? Oops! I see that Larry M beat me to this quote already. The true reality check for the dems will come in 2010.

    September 3, 2009 12:37 pm at 12:37 pm |
  11. Artie

    Smoke and mirrors,Biden would claim anything!

    September 3, 2009 12:37 pm at 12:37 pm |
  12. Jack

    In what world does Biden live? Isn't happening here.

    September 3, 2009 12:38 pm at 12:38 pm |
  13. Biden's Bull

    How can the stimulus bill be working if most of it hasn't even been spent? What about TARP? Hasn't that played a role in the recovery? Biden and Obama are so full of bull that I can't listen to them without getting angry. Our country needs to do better than these two. Otherwise, our best days are behind us.

    September 3, 2009 12:38 pm at 12:38 pm |
  14. FactCheck

    $787 billion to SAVE or create 500,000 to 750,00 jobs is not a sign of recovery.
    --------

    But spending $800 billion to look for non-existent weapons of mass destruction was great, wasn't it?

    September 3, 2009 12:40 pm at 12:40 pm |
  15. Obama Victim

    let me get this straight please......a Democrat thinks a Democrat policy is effective.........................Now......this is news!!

    September 3, 2009 12:41 pm at 12:41 pm |
  16. Mark from Louisiana

    Joe sure isn't getting any smarter. I think the only new jobs created in Louisiana are at the Acorn head office, they got hundreds of millions of dollars in the stealfromus bill.......

    September 3, 2009 12:41 pm at 12:41 pm |
  17. J

    After a long miserable 8 years that sunk not only US economy but also global economy (Thanks President Bush)
    And for those who loss their job, losing their home, and their saving, you have President Bush to be thankful for

    It will take longer than 200 days to fixed this mess
    This Administration is doing everything they can under the circumstances and issues they are facing.

    Americans should be greatful, finally you have an intelligent President in the office

    September 3, 2009 12:41 pm at 12:41 pm |
  18. Chris D.

    I support the stimulus. It is working, slowly but surely. In 2010 we'll see a real boost also as the spending increases.
    Those who won't acknowledge facts, have just chosen to do so b/c they hate this administration........Men lie, women lie, numbers don't. The fact is we were headed for bread lines, and soup kitchens for a vast part of this country, Sept. 08', into about April, May of this year.
    We were headed into depression.....the only conglomerate that could hedge this pending deflation of the economy, was the government, due to it's ability to actually deficit spend, along w/ the fact that we're the only country in the world, that can print it's own money, w/o limit.......Now the fact is, yes it was, and still is a necesscary evil, to spend our way out of deflation......soon we will have to stop, and begin to hedge off inflation, and let capitalism do it's thing......the government get's a strong B- in my opinion.

    September 3, 2009 12:42 pm at 12:42 pm |
  19. Tomkat

    Independent again – Jobs – lagging economic indicator (meaning it is one of the last parts of the economy to come out of a recession. Glad to help....

    September 3, 2009 12:44 pm at 12:44 pm |
  20. Rose

    What world does Biden live in??? To think this guy is second in line to become the President. The package was so full of pork it isn't funny.
    I remember when Biden said that when the Seniors get their $250.00 from the program "it will go a long way" He has no clue. I thought Obama said the stimulus (or what ever they call it) would jump start the economy. We are still waiting.....

    September 3, 2009 12:44 pm at 12:44 pm |
  21. seebofubar

    Biden is an idiot!

    September 3, 2009 12:46 pm at 12:46 pm |
  22. Barry NiFong, Hawaii

    ANOTHER LIE by this administration. It has done nothing. For all of you liberal sheep, WHO IS GOING TO REPAY THE $9 TRILLION DEBT THAT YOUR SAVIOR MISSED BY $2 TRILLION.

    September 3, 2009 12:46 pm at 12:46 pm |
  23. C White

    Didn't Obama say it would get worse before it gets better? He said things would not turn around immediately. Why doesn't anyone listen to what he says instead of spreading rumors and lies?

    September 3, 2009 12:48 pm at 12:48 pm |
  24. gg

    Is it sound like MR. EXPERT on foregn policy?!!! not really.

    September 3, 2009 12:48 pm at 12:48 pm |
  25. TangledThorns

    Hey Joe, my neighbor and girlfriend can't find a job. My Dad also lost his house. Not everyone is skilled at repaving roads that don't need it!!

    September 3, 2009 12:48 pm at 12:48 pm |
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