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First, the article you posted had this near the end:
Told about the findings, another leading economist was unconvinced.
“I’m very surprised that they find these big impacts,” said John B. Taylor, a Stanford professor and a senior fellow at the Hoover Institution. “It doesn’t correspond at all to my empirical work.”
Mr. Taylor said the Fed had successfully stabilized the commercial paper and money markets, but he argued that its purchases of $1.25 trillion in mortgage-backed securities have not been effective. And he said the Obama administration’s stimulus program has had “very little impact and not much to show for it except a legacy of higher debt.”
The disagreement underscored the extent to which econometric estimates are heavily reliant on underlying assumptions and models, but Mr. Blinder and Mr. Zandi said they hoped their analysis would withstand scrutiny by other scholars.
“When all is said and done, the financial and fiscal policies will have cost taxpayers a substantial sum, but not nearly as much as most had feared and not nearly as much as if policy makers had not acted at all,” they write.
So, who would you believe? Now, read this article:
http://www.nytimes.com/2010/07/30/business/economy/30fed.html?src=me&ref=business
I agree that maybe unemployment may have been higher, but that's not the point. The point is all the jobs lost to begin with and not getting better. States are still struggling with high unemployment numbers in the teens. People can't pay taxes or spend money on consumer goods if they don't have a job. What happens next year when April 15 rolls around? Revenue for the federal government will not be nearly enough to cover all the spending that's been done. I could go on and on, but even the financial reform bill is not going to do the job it should.