1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Discuss politics - join our community by registering for free here! HOP - the political discussion forum

CBO: Dems' "stimulus" will do little good short-term, and harm long-term

Discussion in 'U.S. Politics' started by Little-Acorn, Feb 7, 2009.

  1. Little-Acorn

    Little-Acorn Well-Known Member

    Joined:
    Jan 23, 2009
    Messages:
    2,444
    Likes Received:
    151
    Trophy Points:
    63
    Location:
    San Diego, CA
    More and more people - and financial experts - are coming out against the so-calld "stimulus" bills being rammed through the House and Senate, which President Obama is insisting must be passed and signed quickly. Their lack of any real effect on the economy, is making people wonder what all that spending is really for.

    ---------------------------------------

    http://www.washingtontimes.com/news/2009/feb/04/cbo-obama-stimulus-harmful-over-long-haul/

    CBO: Obama stimulus harmful over long haul

    Stephen Dinan (Contact)
    Wednesday, February 4, 2009

    Associated Press

    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.

    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.

    The House last week passed a bill totaling about $820 billion while the Senate is working on a proposal reaching about $900 billion in spending increases and tax cuts.

    But Republicans and some moderate Democrats have balked at the size of the bill and at some of the spending items included in it, arguing they won't produce immediate jobs, which is the stated goal of the bill.

    The budget office had previously estimated service the debt due to the new spending could add hundreds of millions of dollars to the cost of the bill -- forcing the crowd-out.

    CBOs basic assumption is that, in the long run, each dollar of additional debt crowds out about a third of a dollars worth of private domestic capital, CBO said in its letter.

    CBO said there is no crowding out in the short term, so the plan would succeed in boosting growth in 2009 and 2010.

    The agency projected the Senate bill would produce between 1.4 percent and 4.1 percent higher growth in 2009 than if there was no action. For 2010, the plan would boost growth by 1.2 percent to 3.6 percent.

    CBO did project the bill would create jobs, though by 2011 the effects would be minuscule.
     
  2. TruthAboveAll

    TruthAboveAll Active Member

    Joined:
    May 4, 2007
    Messages:
    615
    Likes Received:
    30
    Trophy Points:
    28
    Location:
    Further North than I'd like
    Yep, heard lots about this on the evil "talk radio" circuit today. When the title "CBO" is thrown around, I don't think many are aware that this is the Congressional Budget Office, and is controlled by whichever party is in control of Congress.

    Then Dems being in control now, I find it incredibly ironic that the reports about this Porkulis package is so reserved. The dampening effect on the GDP is sobering, and damning.

    The article you shared above does not mention that they estimate that this spending package would produce as little as 1.3 million jobs, or as many as 3.9 million. Quite a range for an analytical estimate.

    Senator John Thune had a great point on this on C-SPAN today (Senate proceedings). At $980B (as of 11:30 a.m. EST today) that would be $769,230 per job at the low end of 1.3 million; $256,410 per job at the high end of 3.9 million. And as the report also states, a majority of the jobs "created" will disappear within a few years.

    Except, that is for the new "government" jobs that will be necessary to make all this spending happen. So much for P-BO's vaunted commitment to reviewing and eliminating unnecessary governmental departments and spending...

    Lemmings. They're a bunch of friggin' lemmings...
     
  3. Little-Acorn

    Little-Acorn Well-Known Member

    Joined:
    Jan 23, 2009
    Messages:
    2,444
    Likes Received:
    151
    Trophy Points:
    63
    Location:
    San Diego, CA
    I'll take it! Where do I sign up for that job?
     
  4. XCALIDEM

    XCALIDEM Active Member

    Joined:
    May 31, 2008
    Messages:
    1,052
    Likes Received:
    10
    Trophy Points:
    38
    Did you know that there was money allocated towards ACORN in this so called stimulus package? How was ACORNHOLE REVITALIZE our economy?
     
  5. Pandora

    Pandora Well-Known Member

    Joined:
    Apr 6, 2008
    Messages:
    11,790
    Likes Received:
    257
    Trophy Points:
    83
    Location:
    The people's republic of Eugene
    So the stimulus bill has reached an agreement in the senate and apparently its bi partisan because 3 RINO Republicans voted for it and zero republican votes in the house, actually 11 Dems voted against it and a few Dems said they were pressured by Pelosi to vote for it.

    I found this part especially funny and if you’re reading this PFOS I would love to know what you think of it.

    Obama complimented the “patriotism” of the three Rino’s who voted for it. Apparently it’s un-American to vote against the stim bill.

    I know how you got upset when anyone on the right questioned your patriotism so I wonder (and I bet I already know) how you feel about obama doing the same.

    New rules, its patriotic to spend gobs of tax payer dollars and apparently it’s unpatriotic to vote against the egg head


    Rush is going to have a blast on Mondays programming, he suggested that the stim bill be split up by voters 46 percent of Americans voted against the egg head so that much of the bill should go to tax cuts and 54 percent for egg head so use that “pork” money to spend and waste… and that seems to be what the bill has turned out to be, though I don’t trust the slime buckets when they say tax cuts, I think they mean tax credits more or less.
     
  6. Pidgey

    Pidgey Well-Known Member

    Joined:
    Jul 7, 2007
    Messages:
    1,125
    Likes Received:
    25
    Trophy Points:
    48
  7. XCALIDEM

    XCALIDEM Active Member

    Joined:
    May 31, 2008
    Messages:
    1,052
    Likes Received:
    10
    Trophy Points:
    38
    Did you know that there's another "stimulus" Bailout type of things in the works if this one doesn't work?
     
  8. Pandora

    Pandora Well-Known Member

    Joined:
    Apr 6, 2008
    Messages:
    11,790
    Likes Received:
    257
    Trophy Points:
    83
    Location:
    The people's republic of Eugene
    This one wont work just like the last one did not work and yep they are ready with a new one that wont work either

    just like schools, when ever there is a problem they throw money at it and when that doesnt work they throw more money at it and they will never work but they wont ever stop throwing money at it

    a bunch of total retards IMO
     
  9. Mr. Shaman

    Mr. Shaman New Member

    Joined:
    Nov 27, 2007
    Messages:
    7,829
    Likes Received:
    12
    Trophy Points:
    0
    Yeah.....#11 addresses Porky's P.S.

    :rolleyes:
     
  10. Mr. Shaman

    Mr. Shaman New Member

    Joined:
    Nov 27, 2007
    Messages:
    7,829
    Likes Received:
    12
    Trophy Points:
    0
    There's only one small problem.....Porky Limbaugh is a liar.

    :rolleyes:
     
  11. Mr. Shaman

    Mr. Shaman New Member

    Joined:
    Nov 27, 2007
    Messages:
    7,829
    Likes Received:
    12
    Trophy Points:
    0
    <Yaaaaaaaawwwwwwwwnnnnnnnn....>

    We've heard all of this crap, before......​

    :rolleyes:
     
  12. Dr.Who

    Dr.Who Well-Known Member

    Joined:
    Jul 11, 2007
    Messages:
    6,776
    Likes Received:
    251
    Trophy Points:
    83
    Location:
    Horse Country
    From your source:

    "It also provides that "up to $750,000,000 shall be awarded by competition to nonprofit entities or consortia of nonprofit entities to provide community stabilization assistance."

    So I guess only some of 750 million will go to ACORN. That makes it all better!!

    ACORN's anual budget is about 40 million. So if they get half of 750 million (373 million) then their budget will have increased by almost ten times.

    Meanwhile any other group that gets funds for "community stabilization" will certainly be just as lefty socialist. Maybe Bill Ayers will get some?
     
  13. Dr.Who

    Dr.Who Well-Known Member

    Joined:
    Jul 11, 2007
    Messages:
    6,776
    Likes Received:
    251
    Trophy Points:
    83
    Location:
    Horse Country
    Here is something your source claims is a lie. Unfortunately for Media Matters that just isn't a lie:

    "CLAIM: Corporate tax rate cuts and capital gains tax rate cuts would provide substantial stimulus

    In a January 29 speech at the Heritage Foundation, Sen. Jim DeMint (R-SC) attacked the economic recovery plan and offered his own "Jobs Plan That Works," saying, in part: "Just as we cut taxes for families and small businesses, we need to cut them for corporations as well, from 35 percent to 25 percent. And we shouldn't be afraid to say so. Our corporate tax rate is one of the highest in the world, driving investment and jobs overseas. Lowering this key rate will unlock trillions of dollars to be invested in America instead of abroad." On the January 21 edition of Hannity's Fox News show, Michael Steele, now chairman of the Republican National Committee, said: "You want -- if you want to stimulate this economy, eliminate the capital gains tax for two years and see what happens. See what happens on Monday morning if you eliminate it today." Like DeMint and Steele, Limbaugh, in his January 29 Wall Street Journal op-ed on how best to stimulate the economy, wrote: "I say, cut the U.S. corporate tax rate -- at 35%, among the highest of all industrialized nations -- in half. Suspend the capital gains tax for a year to incentivize new investment, after which it would be reimposed at 10%." On the January 27 broadcast of his radio program, Hannity attacked the tax cuts in the recovery package as "anemic" because "They don't cut corporate tax rates. They don't cut capital gains tax rates."

    They even PROVE that they know it isn't a lie when they say:

    "many economists do not view corporate tax rate cuts and capital gains tax rate cuts as particularly effective methods for stimulating the economy. "

    If many don't view it that way then obviously many others do!!!

    Furthermore, Media Matters (because they are so unbiased) goes on to say:

    "every dollar spent through a "Cut in [the] Corporate Tax Rate" produces a GDP increase of only $0.30 "

    Hello!!! they just said that a dollar of spending on tax cuts (even though a cut is not spending) stimulates the economy!!!

    Who is lying now?

    Btw, many of the items in the Obama spending plan increase GDP by far less than $0.30.
     
  14. Mr. Shaman

    Mr. Shaman New Member

    Joined:
    Nov 27, 2007
    Messages:
    7,829
    Likes Received:
    12
    Trophy Points:
    0
    Yeah.....that's what's gonna happen. The terms "nonprofit entities or consortia of nonprofit entities" were given plural-status, just to fool everyone.

    Riiiiiiiiiiiiiiiiiiiiiiight. :rolleyes:

    Lemme guess.....you were no English Major, right? ​
     
  15. chestnut

    chestnut New Member

    Joined:
    Oct 21, 2008
    Messages:
    1,222
    Likes Received:
    10
    Trophy Points:
    0
    Acorn is getting their kickback for helping with the "voter registration". They are included in the non-profit provisions of the bill.

    But On C-Span the senate debated that Acorn be excluded as an ammendment.

    Those crooks at Acorn should get no part of this money.
     
Loading...

Share This Page