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. Cindy PA

    Biden's an idiot !

    September 3, 2009 01:51 pm at 1:51 pm |
  2. The black Spider

    At least the $787 billion is being spent HERE IN AMERICA on the american people Not to Buy GUNS AND KILL IRAK people in a dumb war.

    September 3, 2009 01:51 pm at 1:51 pm |
  3. Cliff

    Well, more BIDENISM!
    What a wacko!
    One just need look at reports from RESPONSIBLE economists and they paint an entirely different picture.
    The SPENDULUS promoted by Obamities is just that. SPEND, SPEND and SPEND SOME MORE.
    Wait until he does his "back-flip" on taxes. It won't be long.
    Keep drinking the kool-aid socialists, as things become worse!

    September 3, 2009 01:52 pm at 1:52 pm |
  4. Brian

    Doesn't 40 + 34 + 27 = 101%? Did someone vote twice...? Or is that just "Biden" math.

    September 3, 2009 01:53 pm at 1:53 pm |
  5. munchmom

    RNC = Limbaugh Failure said: "The RNC needs quit their continual lies and read the Wall Street Journal, which noted the success of the stimulus towards our economic recovery."

    The Wall Street Journal doesn't live where I live, doesn't buy my groceries or gas, and doesn't have to worry that the state could lay us off. With states going into overdrive in trying to handle dwindling coffers to operate, cutting jobs, furloughing employees, and closing places down, don't tell me there is improvement in the economy. All those who say there is are living off the government (Obama, Biden, Pelosi, Reid, etc, etc) and don't have to worry about a single thing. Get real–get into the trenches where it has really hit home and tell me the recession is waning!

    September 3, 2009 01:53 pm at 1:53 pm |
  6. Carbide Depression

    I am witnesssing the devatation of the industrial cutting tool market, which has been at 50% of their 2008 sales volume since last Novemeber, 2008. See KMT (stock symbol) press releases.
    There is no stimulus for manufacturing. Just take a look at the latest Cutting Tool Engineering magazine...ZCC (China) Cobra (India) coming here in droves, while Biden Boasts Blatently about the Democratic "Let's grow a bigger government and tax anyone who makes money and starts a business and employees people!"
    Hm, someday anyone with an original thought (certainly not a Democrat) and a better mousetrip will simply not choose to live here and start their company here. I wonder who will pay for paving roads that don't need it then........

    September 3, 2009 01:54 pm at 1:54 pm |
  7. MJ

    What recovery!! Someone needs to show him how to add 0+0. The three stooges really are a comedy show. Too bad no one is laughing.
    Really have had enough of the massive spending that our children and grandchildren will be paying for years to come. Show US the jobs!

    September 3, 2009 01:54 pm at 1:54 pm |
  8. Lillie

    The Obama Administration is doing a good job in spite of the oversize plate they were handed by the BUSH/CHENEY legacy! ummmm And no matter what happens, the HATERS will never give this administration any credit! President Obama and Vice President Biden were elected overwhelmingly!! GET OVER IT!!!!

    September 3, 2009 01:54 pm at 1:54 pm |
  9. Mike

    America is now the country of whiners. The dems whined when Bush pushed thru the stimulus plan and now the repubs are whining because Obama continued the plan. That god these guys didn't listen to the people or the pundits and saved our economy. Hover waited and let the banks fail leading to the great depression. Of course most Americans wouldn't know this because they are uneducated idiots with opinions on every subject. China and India are going to eat our lunch because we are lazy, stupid and unwilling to realize we don't know everything.

    Please fellow Americans, dem or repub, quit your whining and pull yourself up from this mess.

    September 3, 2009 01:55 pm at 1:55 pm |
  10. Tom L

    It's laughable that he says that our economy is recovering. Of course it is, to some extent. It's called an economic cycle.

    However, the funniest part is that he is crediting the stiumulus package with being the reason when only 15% of the money has been spent.

    September 3, 2009 01:56 pm at 1:56 pm |
  11. Idiot_Pelosi

    Ok, one can pull numbers out of their behind one way or another, so let's stick to some factual numbers.

    WHAT IS THE DEFICIT?

    HOW MUCH AS IT GROWN UNDER OBUMMER / BIDEN?

    Thank you, now argue those REAL numbers.

    September 3, 2009 01:56 pm at 1:56 pm |
  12. Ridgeway

    The cost has yet to be determined Commrades.

    September 3, 2009 01:57 pm at 1:57 pm |
  13. Truth-Bomb Thrower

    WHAT A JOKE!! We were coming out of the recession when these two clowns came into office. The SO-CALLED stimulus package has done nothing but buy votes for the DNC and bury us and our children under even more debt.

    September 3, 2009 01:58 pm at 1:58 pm |
  14. a progressive liberal and proud of it

    At some point Republi\cans are going to HAVE to pull their heads out of their hindquarters about this. The facts are the economy IS recovering. The facts are we were in danger of entering the greatest financial depression this country has faced since the Great Depression just 8 months ago. The facts are we were in that position, largley, because of George W. Bush's failed policies. The facts are the stimulus package was very much needed to pull us back from the edge of the cliff. Now, was the stimulus package perfect? No, but it was NEEDED and it's WORKING. Are more regulations needed to make sure we don't go there again. You better believe it and I think that once we're done with the crisis at hand, health insurance reform, you will see that addressed.

    September 3, 2009 02:00 pm at 2:00 pm |
  15. John from California

    The economic wreckage of Western Civilization had it's beginnings in the Ronald Reagan Era and almost reached the economic collapse so desired by the rich under the last Bush.

    In several short months the Democrats under the Obama/Biden leadership have managed to turn this shipwreck around despite republican foot dragging.

    It's time to support our President and tell these greedy republicans that we have had enough of their trickle down voodoo economics.

    September 3, 2009 02:01 pm at 2:01 pm |
  16. JDL

    The bloated stimulus package failed to meet all three of the necessary qualities needed to be effective, namely that it should be Timely, Targeted and Temporary. After 200 days, other than tax cuts, very little of the money has done anything – not Timely. Targeted – Tax cuts yes, and maybe a very few infrastructure projects. Much more at some of the dumbest pork projects imaginable. The rest was simply given to state and local governments, which do nothing productive for the economy, to cover their lack of fiscal responsibility. Temporary? No, it only leads to more habitual spending of the same kind. The only part that worked was Cash For Clunkers, a blatant bailout for our incompetent domestic auto industry, much of which, appropriately, is now owned by the Federal Government, where it should feel right at home.

    September 3, 2009 02:01 pm at 2:01 pm |
  17. Jeff

    How can you tell Biden is lying? His lips are moving!! Seriously, what a crock. Where'd the money go? 463 million to Tesla? So they can build a $100,000. dollar sportscar? That's getting us out of the recession? The Whitehouse is clueless and will resort to the same lying / spin every other administration used, while America continues to sink to new depths.

    September 3, 2009 02:02 pm at 2:02 pm |
  18. JDM

    This time last year the dam broke on Bushs watch! Companies drop alot people to clear their books ( wages, benefits, 401k's, health care packages). This year, those same companies can hire who they want instead keeping of out dated skill workers they had. We live in a international world now, we must sell to everyone. If your whinning and pinning for that job you had yesterday, sorry it is gone! Get off you butt and upgrade your education to match the needs of today and forge ahead! That used to be what Americans did!

    September 3, 2009 02:02 pm at 2:02 pm |
  19. Jared in Montana

    I only have nightmares about what our global economy would be like if both the Bush administration and the Obama administration hadn't thrown billions of dollars into it. We could all stand a little history lesson about J.P. Morgan and his actions during multiple economic catastrophies in the early 1900s. I doubt the economic advisers of our current times that encouraged our "stimulus packages" overlooked the powerful lessons we can gleam from Morgan's actions.

    September 3, 2009 02:03 pm at 2:03 pm |
  20. JP

    When you undertake an experiment with $787 billion, something has to show up somewhere.

    September 3, 2009 02:03 pm at 2:03 pm |
  21. Cindy

    Bravo, Joe! Bravo Mr. President! The President did not fail, as Rush, the Conservatives and Republican obstructionists hoped he would.

    Honestly... these citizens that hope that the stimulus fails, just so they can say "we told you so"; just so they can say, "we won, they lost..." have totally lost the plot.

    The country... the world too.. fell into a big hole. It's not easy to dig out of it, but we are doing it. Now if we can just get those banks to get off their arse, and start lending again, we'd recover soooo much quicker.

    September 3, 2009 02:07 pm at 2:07 pm |
  22. a progressive liberal and proud of it

    One more thing: One big reason unemployment is not coming down as fast as it should is because Republican governors are sitting on the stimulus money their states got and NOT using it to create jobs in their states. The reason they're doing this, you might rightfully ask??? They think it is in the best interest of the Republican party to defeat President Obama and they think a failing economy is the way to do it. Plain and simple. Pure cynical politics. Many, if not most, of these governers are in southern states, where most of the disatisfaction with President Obama is coming from. Full circle.

    September 3, 2009 02:07 pm at 2:07 pm |
  23. obummer, 1 and done

    I want some of what he's smoking!

    September 3, 2009 02:08 pm at 2:08 pm |
  24. bj,texas

    Poor Joe, instead of hairplugs he should've bought a brain.

    September 3, 2009 02:11 pm at 2:11 pm |
  25. The black Spider

    You all complain about the deficit and you have the right to be concerned. Democrats are also concerned about the deficit but how do you expect to fix your broken car with an empty bank account without borrowing and spending a penny you genious republicans?
    Oh I forgot we should all go to church and pray to the all mighty God and everything will be fine. I use to love the republicans but
    Conservatism nowadays = Ignorance and Biggotery

    September 3, 2009 02:11 pm at 2:11 pm |
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