As Stimulating As We Want It To Be

According to the Congressional Budget Office, the “Stimulus” of 2009 increased employment and lowered the unemployment rate.  Obamanomics is a success!!

Not so fast.

Reason.com’s Peter Suderman reveals the truth: the CBO’s reports do not measure real-word output from the stimulus.  They measure how much money was spent, then employ the same economic models used to justify the stimulus to calculate the estimated “jobs created/jobs saved/lower unemployment rate.”

There is no testing to see how accurate the models are.  That’s not just me talking.  Suderman quotes the CBO director himself saying “if the stimulus bill did not do what it was originally forecast to do, then that would not have been detected by the subsequent analysis.”

I recommend Veronique de Rugy and Daniel Mitchell to learn just how “stimulative” government spending really is.

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