CBO: Obama stimulus harmful over long haul

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.

Reaad it all.

Posted in * Economics, Politics, Economy, Office of the President, Politics in General, President Barack Obama, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The Fiscal Stimulus Package of 2009

11 comments on “CBO: Obama stimulus harmful over long haul

  1. austin says:

    That’s not the issue. Will the package help keep Democrats in power for a generation? That’s what this is really about.

  2. Jeffersonian says:

    Took the words right out of my mouth, Austin. It’s an economic fiasco, but a political marvel. Chicago machine politics writ large.

  3. Don R says:

    There’s an interesting related [url=http://business.theatlantic.com/2009/02/an_interview_with_robert_barro.php]interview with economist Robert Barro[/url] at The Atlantic. Regarding the “stimulus” bill, he said it’s “probably the worst bill that has been put forward since the 1930s.” The good news is that a lot, maybe even most, of the public is being fooled. We’ll see what happens.

  4. TACit says:

    Yes, exactly, #2. This new US Administration is Chicago machine politics writ large, and no one should ever lose sight of that – it needs to be repeated often. Possibly the likes of Rahm Emmanuel think the Democrats now in power can lift their party beyond those bad old days, but unfortunately, since that was how they got into power, they will find it awfully hard to shake those same adherents. This is probably why for example the corrupt ACORN organization is found as a recipient of largesse in the ‘new’ economic stimulus. There is too much that is old about this stimulus plan to bring about any authentic change.

  5. BrianInDioSpfd says:

    The stimulus is an attempt to prolong a severe recession into another great depression and keep the Democrat party in power for the next several decades.

  6. Katherine says:

    If even the CBO thinks this turkey of a bill is bad for the country, the Pelosi-Reid-Obama group ought to be dropping it — if, that is, they have the good of the country in mind.

  7. libraryjim says:

    They don’t, Katherine. Unfortunately, as Rhom Emmanual said “we cannot let a crisis like this go to waste, It’s the perfect opportunity to push our agenda through and make fundamental changes” or words to that effect. And a lot of that agenda is in this bill, which is why the three you mentioned want it passed so badly! And for us, it will be passed — badly.

    Jim Elliott
    Florida

  8. clayton says:

    I’m not sure this is the best bill possible, but I’m really sick of hearing the [url=http://www.factcheck.org/askfactcheck/does_the_stimulus_bill_include_a_52.html]lie about ACORN[/url]

  9. clayton says:

    ugh. failed html.

    [url=http://www.factcheck.org/askfactcheck/does_the_stimulus_bill_include_a_52.html]trying this again…[/url]

    [i]elves, if you can somehow combine the posts for me and fix the link, that would be great![/i]

  10. Katherine says:

    #8, Clayton, from the factcheck.org site:[blockquote]The House version of the stimulus bill does indeed include about $1 billion in funding for the Community Development Block Grants (CDBG) program and another $4.2 billion ($2.2 billion in the Senate’s version) in funding for the Neighborhood Stabilization Program (NSP).[/blockquote]The “lie” is that it goes directly to ACORN, whereas it might go to any number of groups who apply. Nonetheless, this kind of funding has no business being in an “economic stimulus” bill.

  11. TACit says:

    Exactly, #8 (and thanks for your efforts of looking at the factcheck.org site). It might go to any number of groups that would be distingishable from ACORN only by name.
    I came across this interesting quote about Obama in a new Mark Steyn essay, and thought it provides a very apt summary of the problem being created by this stimulus bill ‘charge’:
    [b]“He is a community organizer like Jesus was,” said Susan Sarandon, “and now we’re a community and he can organize us.”[/b]