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and in the short run... but hey, movement in the right direction, and (politically) a welcome realization of reality by the CBO.
The[URL="http://www.washingtontimes.com/topics/congressional-budget-office/"] Congressional Budget Office[/url] on Tuesday downgraded its estimate of the benefits of President Obama’s 2009 stimulus package, saying it may have sustained as few as 700,000 jobs at its peak last year and that over the long run it will actually be a net drag on the economy....
CBO said it has concluded there is less of an indirect multiplier effect of federal spending. Those changes caused it to drop its estimates for total employment sustained by the spending in 2011 from between 1.2 million and 3.7 million down to between 600,000 and 3.6 million.
As for the long-term situation, CBO said its basic assumption is that each dollar of additional federal debt crowds out about a third of a dollar’s worth of private domestic capital. CBO does not calculate crowding out in the short term, which is why the Recovery Act boosts the economy in the near term.