CBO: Obama Stimulus Plan Worse than Ineffective

The Congressional Budget Office had bad news for Democratic leaders at a day when they tried to convince at least some Republicans to support the economic stimulus plan: the plan will give the economy a very minor boost in the short term, the CBO says in a recently published report, but will hurt the economy in the middle to long term.

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.

CBO estimates that by 2019 the Senate legislation would reduce GDP by 0.1 percent to 0.3 percent on net. [The House bill] would have similar long-run effects, CBO said in a letter to Sen. Judd Gregg, New Hampshire Republican, who was tapped by Mr. Obama on Tuesday to be Commerce Secretary.


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February 6, 2009 · Filed Under Barack HUSSEIN Obama, bail outs

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