How much lower and how delayed will the recovery be due to the poor policies enacted by Congress in 1Q09?

The normal post-recession recovery has GDP at least equal to the peak to trough difference. That level is 4.4% for this one. FDR prolonged and deepened the Depression with his rampant spending. Obama just spent multiples more than the previous record deficit by allowing Pelosi and Reid to write the “Recovery Act” and putting together a ridiculous budget. Much of this will not enter into the economy until the natural recovery would have begun from no action at all. A stimulus ENCOURAGES spending. This bill WAS spending. There is a difference. The combination of tax credits and welfare through the tax system were the only stimulus in the bill. After that bill, we got 8,500+ earmarks in a supplemental budget. Bigger government and more spending…Now, the retroactive AIG bonus tax, the GM firing, and other actions are making people afraid to deal with the government on further “recovery” plans.