CBO Stimulus Estimate: $75 Billion Mistake?

Tuesday, 03 Aug 2010 01:19 PM

By David A. Patten

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Some 18 months after Congress passed the Obama administration's record stimulus spending package, media outlets still cannot agree on how much the program actually costs. In fact, they're not even close.

The estimates provided by various news outlets vary by as much as $75 billion.

Initially, the Congressional Budget Office assessed the program's cost at $787 billion. But 11 months later, in January 2010, the CBO revised that cost estimate upward to $862 billion, blaming higher-than-expected unemployment for the increase.

It seems some news outlets never got the CBO's memo, however. CNN, the Los Angeles Times, The Washington Post, The Huffington Post, and The New York Times all continue to use the lesser figure in their reports.

Alan Viard, who writes the Enterprise Blog for the American Enterprise Institute, says some media "inexplicably cling" to the incorrect estimate. He praises The Wall Street Journal's consistent use of the higher number, but is dismayed by how often the wrong number appears in other media.

"Given our limited understanding of the business cycle, we may never be able to speak with certainty about the impact of the stimulus on jobs and the economy," he writes. "But can't we at least use the current cost estimate?"

Many conservatives warned all along the stimulus cost estimates were suspect. The Heritage Foundation's "The Foundry" blog even called them "pure fantasy."

"No one believes that the increased funding for programs the left loves like Head Start, Medicaid, COBRA, and the Earned Income Tax Credit is in anyway temporary," The Foundry declared in February 2009. "No Congress under control of the left will ever cut funding for these programs."

The Foundation's prediction for the actual 10-year cost of the stimulus: $3.27 trillion.


© 2014 Newsmax. All rights reserved.

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

US Plans to Arm, Train Ukraine National Guard

Friday, 01 Aug 2014 23:20 PM

The Obama administration has notified Congress of its plans to train and arm the Ukrainian national guard next year, the . . .

House GOP Lauds Passage of 'Responsible' Border Bill

Friday, 01 Aug 2014 23:02 PM

House Republicans praised the passing of legislation that would give President Barack Obama $694 million to address the  . . .

Congress Approves $225 Million for Israeli 'Iron Dome' System

Friday, 01 Aug 2014 22:54 PM

Congress approved $225 million in emergency funding for Israel's Iron Dome missile defense system on Friday, sending t . . .

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