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US bailouts prevented 1930s-style Great Depression say economists1
Date Added: January 21, 2011 06:41:00 AM
Author: lydia24
Category: Business & Economy: Chemical Services and Supplies
Zandi and Blinder say that although economic activity and job creation remain extremely sluggish, the US economy has made "enormous progress" since its nadir last year: "Maybe the country and the world were just lucky. But we take another view: the great recession gave way to recovery as quickly as it did largely because of the unprecedented responses by monetary and fiscal policymakers." The study's authors are likely to have their findings hotly disputed by Republicans, who maintain that an unemployment rate stubbornly close to 10% means the government's interventions were a failure, fuelling an out-of-control budget deficit. Speaking earlier in the week, the Republicans' senate leader, Mitch McConnell, insisted stimulus efforts had "little or no results", and that such intervention "simply didn't work". "Simply borrowing money from our grandchildren to send down to state governments is not going to jump start the economy," McConnell told a newspaper in his home state of Kentucky. "The biggest way for the economy to recover is for the private sector to grow." But the producers of a multimillion-dollar biopic about Brazilian leader Luiz Inácio Lula da Silva say plans for a US release have hit a speedbump after one exhibitor backed out of showing the film, fearing Lula's controversial relationship with Iran might put off audiences. Lula, the Son of Brazil, a two-hour movie about one of the world's most popular presidents, was launched in Brazil on 1 January this year and follows the leftwing leader's rise from the scorched backlands of his country's north-east to the pinnacle of Brazilian politics.
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