Why the stimulus still matters, in one chart

at 01:57 PM ET, 11/14/2011

There are a few forms of federal stimulus that are still helping to prop up the economy, and if they’re allowed to expire at the end of the year, that could depress GDP growth by a full 1.5 to 2 percent, J.P. Morgan reminds us in a research note released on Friday. Via the Wall Street Journal, here’s a graphic showing what could happen to the economy if extended unemployment insurance benefits and payroll tax cuts aren’t renewed by Congress once they expire at the end of 2011.


These were measures included in the original stimulus that were extended last December, and J.P. Morgan estimates that they’ve lifted household disposable income by $150 billion this year alone.

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