Mt. Rushmore here he comes.
The CBO Quietly Downgrades Obama's $825 Bil StimulusObama will claim that he saved and created five million, ten million, a hundred million jobs. The truth? The facts? We are into the fourth year of the worst, most prolonged recession in American history, one that Obama promised to end three years ago.
Investor's Business Daily editorial
After nearly all the stimulus money has been spent, the Congressional Budget Office now admits it cost more than advertised, did less to boost growth and will hurt the economy in the long run.
In its latest quarterly report on the economic effects of the Obama stimulus, the CBO sharply lowered its "worst case" scenario while trimming many of its upper-bound estimates for stimulus-fueled growth and employment.
The new report finds, for example, that the stimulus may have added as little as 0.7% to GDP growth in 2010 — when spending was at its peak — and created as few as 700,000 new jobs.
Both are down significantly from the CBO's previous worst-case scenario.
The report also lowered the best-case estimate for added growth in 2010 to 4.1% from 4.2%.
In addition, the CBO says the extra infrastructure money didn't boost growth as much as it previously claimed, because states reacted by spending less out of their own budgets on highways.
So in other words, the CBO now says it's possible that the stimulus had virtually no meaningful effect on growth and employment despite its massive price tag.
All this comes after the CBO increased that price tag to $825 billion from its initial $787 billion — a 5% hike.
Adding insult to injury, the new report also says the stimulus will hurt economic growth in the long run because of "the resulting increase in government debt." Each dollar of additional debt, it reports, "crowds out about a third of a dollar's worth of private domestic capital." [link]
Obama's promise has gone unkept. It's time we unkeep him.