The CBO Quietly Downgrades Obama's $825 Bil Stimulus - it costed more, did less than CBO's worst case estimates

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    Nov 24, 2011 5:56 AM GMT
    Surprise... well, not really.

    http://news.investors.com/ArticlePrint.aspx?id=592709&p=1

    Recovery: 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.
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    Nov 24, 2011 1:10 PM GMT
    More here: http://www.realjock.com/gayforums/1976086

    But - while it created as many as 700,000 *temporary jobs* let's remember that it is a plan that costed 825 billion dollars. For those who are counting, that's $1.1 million dollars per temporary job.

    Cost effective? For 825 billion you'd better hope someone was left happy.
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    Nov 24, 2011 5:40 PM GMT
    tumblr_leftkrHJkw1qf8yek.gif
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    Nov 24, 2011 8:59 PM GMT
    The stimulus bill cost the same as the Bush prescription drug bill.
    And the Bush prescription drug bill is a massive waste of taxpayer dollars/gift to Big Pharma.

    And if we hadn't had the Bush recession, the stimulus bill wouldn't have been necessary!

    The fact is that all of our economic woes are Bush's fault.
  • GQjock

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    Nov 25, 2011 3:19 PM GMT
    No Rid ..... The surprise but not really is that at the same time CORPRATE profits rose by 6%

    That's the surprise but not really in all of this
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    Nov 25, 2011 3:25 PM GMT
    GQjock saidNo Rid ..... The surprise but not really is that at the same time CORPRATE profits rose by 6%

    That's the surprise but not really in all of this


    Have a look at what percentage of those corporate profits are domestic versus foreign and I think you'll get your surprise.