New CBO Reports Show Stimulus Even Less Effective Than Previously Beli

[John Adams]

New CBO Reports Show Stimulus Even Less Effective Than Previously Believed...
 
Buried within the Congressional Budget Office's most recent report on the progress of President Obama's American Recovery and Reinvestment Act was a surprising admission: the CBO now estimates the stimulus might have been only half as effective as previously thought.
 
You wouldn't know it from the headlines. "Stimulus added up to 3.3M jobs," reads a representative piece from Politico reporting on the November CBO report. This headline is accurate for the high-end estimate. That estimate, however, is essentially unchanged from previous reports. In the past, the CBO's low estimate for jobs "created or saved" was 1.2 million which, in this report, has dropped to only 600,000.
 
A particularly unusual requirement in the stimulus was that the CBO issue regular reports on its estimates of the legislation's economic effectiveness. Standard neo-Keynesian macroeconomics, to which the CBO has long seemed to subscribe in its economic modeling, posits that government spending creates a "multiplier effect" that ripples throughout the economy and creates more growth than it would normally appear to. The CBO's newest report cuts one of their estimates in half, validating conservative criticism that they've been overestimating the effect of the stimulus.
 
If the debate about the law was shaped by the possibility that a $825 billion spending law would yield only six hundred thousand jobs, the debate may have been a lot different. Over $1.3 million dollars per job "created or saved?" That's not a number that Democrats are eager to be touting on Capitol Hill.
 
The Center on Budget and Policy Priorities put together a chart representing the CBO's revised estimates:

It might be difficult to find those who would argue that the stimulus was worth it if the CBO's new low-end estimate of jobs "created or saved" is accurate. The left will always have Paul Krugman and similar ideologically-aligned colleagues arguing that the CBO is wrong, that the economic multipliers are higher, and that the CBO is actually underestimating the growth that comes from a massive injection of government money into the economy. The problem for Krugman et. al is that the economics on such undertakings are far from settled.

[hoosier_daddy]

what a liar you are...

[jst-the-fax]

This latest drop in the unemployment rate is nothing short of "smoke & mirrors" in the respect it does not take into account those people out of benefits, those no longer looking for work or those under employed.  If they were to add those factors into the equation, the rate would be roughly 19%. But remember, these folks will vote...but more than likely not for that obama character!!!

Also...it was reported today that home sales were approx. 20% less than first reported. 


John,

Note the source of HD's chart...real believable source...not

http://democratsforprogress.com/forum/showthread.php?tid=8678

[John Adams]

It is a report from the CBO homo boy.......
 
Your charts are irrelevant and boring.....

[Dan]

Hoserhead,
 
Why do you find it necessary to lie?  Just tell us you want to destroy America and be honest about it.

[lluke47]

The stimulus was used to pay back liberal cronies who donate to the chimp's campaign coffers, no working people benefited from any of this money, what a crime, we should be dragging this administration out into the street and cover them with tar and yellow feathers...what a sorry criminal administration the idiots in America elected..

[D2D]

Hoosier, look at your chart!

Is the increase in employment equal to or greater to the decrease in employment?

NO!

Meaning there are more unemployed than you think!

[Baretta19]

what a liar you are...

Yes John you lie quoting the CBO, how dare you post facts that make Hoosiers boyfriend  look like a moron

[hoosier_daddy]

try to imagine you have a brain.  then look at the incredibly huge job loss numbers before obama and then how fast they improve after obama.  then look at the negative GDP before obama and then the positive GDP after.  and then ask yourself, what happened after obama got elected that could have made such a huge change in these all-important economic indicators?  oh, i know, you would say if you had a brain, it must be the stimulus!!  nothing else changed....get it?  if there is a big huge improvement to the economy right AFTER the stimulus is passed, and nothing else has changed, then that is what we call a "clue."  if we lost 3.5 million jobs the last 5 months of bush, which we did, and then within a year those incredibly huge 700,000 job losses a month had been turned around and were positive job gains, then how can you say the stimulus did not create or save at least 3.5 million jobs?  do you have no way of thinking logically?

[John Adams]

The private sector is not creating enough jobs at present and it will not as long as barry is in power...
 
Most economists say we need to be creating 250k jobs per month for a sustained period of time, years in order to fully recover, barry will not allow that....