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 Obama's Stimulus Did Little for Economy

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UrRight



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PostSubject: Obama's Stimulus Did Little for Economy   7/4/2011, 3:06 pm

[color=#6633FF]http://www.weeklystandard.com/blogs/obama-s-economists-stimulus-has-cost-278000-job_576014.html

[i]When the Obama administration releases a report on the Friday before a long weekend, it’s clearly not trying to draw attention to the report’s contents. Sure enough, the “Seventh Quarterly Report” on the economic impact of the “stimulus,” released on Friday, July 1, provides further evidence that President Obama’s economic “stimulus” did very little, if anything, to stimulate the economy, and a whole lot to stimulate the debt.


The report was written by the White House’s Council of Economic Advisors, a group of three economists who were all handpicked by Obama, and it chronicles the alleged success of the “stimulus” in adding or saving jobs. The council reports that, using “mainstream estimates of economic multipliers for the effects of fiscal stimulus” (which it describes as a “natural way to estimate the effects of” the legislation), the “stimulus” has added or saved just under 2.4 million jobs — whether private or public — at a cost (to date) of $666 billion. That’s a cost to taxpayers of $278,000 per job.

In other words, the government could simply have cut a $100,000 check to everyone whose employment was allegedly made possible by the “stimulus,” and taxpayers would have come out $427 billion ahead.

Furthermore, the council reports that, as of two quarters ago, the “stimulus” had added or saved just under 2.7 million jobs — or 288,000 more than it has now. In other words, over the past six months, the economy would have added or saved more jobs without the “stimulus” than it has with it. In comparison to how things would otherwise have been, the “stimulus” has been working in reverse over the past six months, causing the economy to shed jobs.

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Artie60438

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PostSubject: Re: Obama's Stimulus Did Little for Economy   7/4/2011, 7:52 pm

Quote :
The White House

Office of the Press Secretary
For Immediate Release
July 01, 2011
CEA Releases Seventh Quarterly Report on the Economic Impact of the Recovery Act

WASHINGTON, DC – The Council of Economic Advisers today released its latest quarterly report on the economic impact of the American Recovery and Reinvestment Act. The report shows that the Recovery Act continues to play a key role in supporting the economy. Specifically, the Recovery Act added as much as 3.2 percent to the level of first quarter GDP and raised employment by as many as 3.6 million jobs.

Overall, the Recovery Act has played a significant role in the turnaround of the economy, which has grown for seven straight quarters and has added 2.1 million private sector jobs over the past 15 months.

This is the seventh quarterly report the Council of Economic Advisers has submitted to Congress on the employment and economic impact of the Recovery Act. The report can be viewed in full HERE.

Key Findings

As of the first quarter of 2011, the Recovery Act raised employment by 2.4 to 3.6 million jobs.
GDP began to grow steadily in the third quarter of 2009, and has now grown for seven consecutive quarters, including continued growth in the first quarter of 2011.
The Recovery Act has raised the level of GDP as of the first quarter of 2011 by between 2.3 percent and 3.2 percent.
http://www.whitehouse.gov/the-press-office/2011/07/01/cea-releases-seventh-quarterly-report-economic-impact-recovery-act
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Artie60438

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PostSubject: Right’s latest talking point: Stimulus cost $278,000 per job   7/5/2011, 12:38 pm

In a nutshell the latest wingnut talking point is nothing more than their usual voodoo mathematics....
Right’s latest talking point: Stimulus cost $278,000 per job
By Greg Sargent

It’s the latest talking point on the right: The Obama stimulus has cost the taxpayers $278,000 per job created. That number comes from a Weekly Standard article from over the weekend, and House Speaker John Boehner promoted the story today on Twitter.

The Weekly Standard reached this conclusion by dividing the cost of the stimulus bill so far, $666 billion, by the Council of Economic Advisers’ low-end estimate of the number of jobs created by the stimulus, 2.4 million. The Standard concluded: “The government could simply have cut a $100,000 check to everyone whose employment was allegedly made possible by the `stimulus,’ and taxpayers would have come out $427 billion ahead.”

But the Standard story doesn’t take into account the fact that jobs aren’t the only thing that has been created by the American Recovery and Reinvestment Act. It also has funded infrastructure improvements and factory construction, as well as investments in education, as White House spokesperson Liz Oxhorn was quick to point out in an emailed statement:

“This study is based on partial information and false analysis. The Recovery Act was more than a measure to create and save jobs; it was also an investment in American infrastructure, education and industries that are critical to America’s long-term success and an investment in the economic future of America’s working families. Thanks to the Recovery Act, 110 million working families received a tax cut through the Making Work Pay tax credit, over 110,000 small businesses received critical access to capital through $27 billion in small business loans and more than 75,000 projects were started nationwide to improve our infrastructure, jump-start emerging industries and spur local economic development.”

As Jake Tapper notes, the White House has long pushed back hard on the math of dividing the stimulus’s cost by the number of jobs created. The White House’s preferred metric is the one found in the nonpartisan Congressional Budget Office’s most recent report on the stimulus, which found that its policies raised GDP by as much as 3.1 percent and increasted the number of full-time employed people by as much as 3.3 million.


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Artie60438

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PostSubject: Re: Obama's Stimulus Did Little for Economy   7/5/2011, 1:56 pm

Once last thing.....
How Much Did Each Bush "Job" Cost?
Quote :
Boehner and the Weekly Standard should have never gone down this road. Not just because the analysis was so juvenile, but also because this conceptual approach actually makes Obama's admittedly-flawed stimulus package a bargain compared to the economic and jobs record of George W. Bush, an economic and policy approach totally based on tax cuts that were sold to us based on the jobs they would allegedly create. And a policy and record totally supported by John Boehner and the GOP caucus in both houses of Congress.

If Boehner really wants to go down this road, then let's take the total cost of Bush's two tax cut packages, again both of which were wholeheartedly supported by Boehner and the GOP members of Congress. This figure, including the annual deficits and future debt and interest costs amounts to about $7.4 trillion dollars for the period 2001-2019. Then to follow the Weekly Standard's own flawed approach, we'll divide that figure by Bush's total net jobs record during his eight years, which amounted to a record-low 3 million jobs, some of which were then in fact wiped out by Bush's recession as he left office.

You do the math of what $7.4 trillion divided by 3 million comes out to.
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