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Noreen Seebacher
User Rank
Blogger
Re: Jobs, GDP and the Federal Stimulus
Noreen Seebacher   2/26/2012 10:12:45 AM
NO RATINGS
Well, that's one way of looking at things @Big Jim. Anyone else care to weigh in?

BigJim
User Rank
Iron
Re: Jobs, GDP and the Federal Stimulus
BigJim   2/24/2012 9:54:12 AM
NO RATINGS
Government can't "make" jobs. The whole thing started with a flawed premise. Should've just dropped money from a plane. A lot of stupid people would've been trampled trying to catch the dollars, potentially freeing up jobs or at least dropping the unemployment rate.

It sounds harsh, but I believe in Darwin more than any political party.

AskAsa
User Rank
Platinum
Re: Jobs, GDP and the Federal Stimulus
AskAsa   2/24/2012 9:14:12 AM
NO RATINGS
Seems like some very expensive jobs -- including the ones I presume were created at the CBO.

Noreen Seebacher
User Rank
Blogger
Jobs, GDP and the Federal Stimulus
Noreen Seebacher   2/24/2012 8:39:52 AM
NO RATINGS
The Congressional Budget Office is required by law to produce regular reports on the number of jobs created by the American Recovery and Reinvestment Act of 2009 (ARRA), which was enacted in response to significant weakness in the economy. In its latest report, issued this week, CBO estimates that in the fourth quarter of 2011 ARRA's policies:
  • They raised real (inflation-adjusted) gross domestic product (GDP) by between 0.2% and 1.5%,
  • They lowered the unemployment rate by between 0.2 percentage points and 1.1 percentage points,
  • They increased the number of people employed by between 0.3 million and 2.0 million, and
  • They increased the number of full-time-equivalent (FTE) jobs by 0.4 million to 2.6 million. (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers.)

Those ranges reflect the substantial uncertainty that surrounds the broad economic effects of such policies and a range of economists' views about the magnitude of those effects.

In 2012 ARRA will:
  • Raise real GDP by between 0.1% and 0.8%, and
  • Increase the number of FTE jobs by between 0.2 million and 1.3 million.

In total, CBO estimates that the legislation will increase budget deficits by about $831 billion in the 10 years ending 2019.

What's your reaction? Was this spending worth it? Should we have increased the deficit $831 billion to create a maximum of 3.9 million FT equivalent jobs?  Or is that oversimplifying the spending?

 





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