President Obama's economic recovery package will actually hurt the economy more in the long run than if he were to do nothing, the nonpartisan Congressional Budget Office said Wednesday.
CBO, the official scorekeepers for legislation, said the House and Senate bills will help in the short term but result in so much government debt that within a few years they would crowd out private investment, actually leading to a lower Gross Domestic Product over the next 10 years than if the government had done nothing.
Scary stuff right?
But what is the true focus of the letter to Senator Gregg? Well how about we stroll on over to the CBO director's blog to see what they have to say about it.
In a letter sent today to Senators Grassley and Gregg, CBO analyzed the macroeconomic effects of an initial Senate version of the stimulus legislation (the Inouye-Baucus amendment in the nature of a substitute to H.R. 1, which is the House stimulus bill). CBO estimates that the Senate legislation would raise output by between 1.4 percent and 4.1 percent by the fourth quarter of 2009; by between 1.2 percent and 3.6 percent by the fourth quarter of 2010; and by between 0.4 percent and 1.2 percent by the fourth quarter of 2011. CBO estimates that the legislation would raise employment by 0.9 million to 2.5 million at the end of 2009; 1.3 million to 3.9 million at the end of 2010; and 0.6 million to 1.9 million at the end of 2011.
Thats what you call a bait and switch folks. Much like the article the Washington Times published earlier in the week where they clipped the words of Senator Max Bauchus in a press conference to make it seem like he was backing off trying to pass universal healthcare reforms this year when in truth every other source at the same press conference reported that Senator Bauchus' words projected the exact opposite. All newspapers are not created equal and the Wingnut times shouldn't be created at all. Talk about a waste of dead trees.
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