Stimulus to Cost $27B More Than Original Price Tag

Tuesday, 24 Aug 2010 06:40 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

President Barack Obama's massive stimulus measure has created or saved as many as 3.3 million jobs and continues to boost economic growth in the second half of 2010, but it's come at a higher price tag than originally billed.

Congressional analysts released new figures Tuesday estimating that the law enacted in January of 2009 — then projected to cost $787 billion over a decade — would cost $814 billion. That's still lower than the Congressional Budget Office estimated in January, when it said the measure would cost $862 billion.

The report comes 10 weeks before midterm congressional elections in which Republicans are hammering Democrats and Obama on the economy, charging they've pushed runaway spending without creating promised jobs.

The analysis credits the stimulus measure with increasing the number of people employed somewhere between 1.4 million and 3.3 million jobs between April and June — and boosting the gross domestic product by as much as 4.5 percent. The figures are slightly less rosy than the picture Obama's economic advisers painted last month, when they said the stimulus law had "raised employment by 2.5-to-3.6 million relative to what it otherwise would have been" during that period.

In May, the nonpartisan office estimated the law had created or saved between 1.2 million and 2.8 million jobs during the first three months of the year, and increased GDP by up to 4.2 percent.

The measure has lowered unemployment as much as 1.8 percent in the second quarter of the year, according to the report.

In a speech Tuesday, House Republican Leader John Boehner of Ohio gave a stinging indictment of Obama's fiscal policies and demanded that he fire his top economic aides.

"All this 'stimulus' spending has gotten us nowhere," Boehner proclaimed in Cleveland.

Vice President Joe Biden said the report confirms the stimulus measure has indeed worked.

"So while Republicans in Congress — the same party that got us into this mess in the first place — may want to turn back the clock and drive us back into the same ditch we're making our way out of, it's now clearer than ever before that we can't afford to go backward," Biden said in a statement.

The analysis also suggests, however, that most of the bang the still-lagging economy is going to get for its stimulus buck has already occurred. About 70 percent of the measure's cost will have been incurred by the end of next month, the report said, and its effects on jobs and economic growth are expected to dwindle in the second half of the year and gradually disappear starting in 2011.

——

Online:

CBO website: http://www.cbo.gov

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

House Passes $694 Million Border Security Bill

Friday, 01 Aug 2014 20:48 PM

The House of Representatives late on Friday approved $694 million in new funds to further secure the U.S. border with Me . . .

Hayden 'Disappointed' Obama Used Word 'Torture' at News Conference

Friday, 01 Aug 2014 19:58 PM

President Barack Obama admitted on Friday that the U.S. tortured some al-Qaida detainees captured after the 9/11 attac . . .

GOP Slams Obama for Attacks on Immigration Impasse

Friday, 01 Aug 2014 19:36 PM

Republicans quickly slammed President Barack Obama's attack on the GOP for not working with him to solve the illegal imm . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved