CBO Update on Obama Stimulus

[Dammy]

http://www.washingtontimes.com/news/2011/nov/22/cbo-stimulus-hurts-economy-long-run/

The Congressional Budget Office on Tuesday downgraded its estimate of the benefits of President Obama’s 2009 stimulus package, saying it may have sustained as few as 700,000 jobs at its peak last year and that over the long run it will actually be a net drag on the economy.

 

[redrumloa]

Wow, what a f***ing shocker? Not!

 

[FluffyMcDeath]

Wow, what a f***ing shocker? Not!

What, this?

its basic assumption is that each dollar of additional federal debt crowds out about a third of a dollar’s worth of private domestic capital.

i.e. that the long term drag is an ASSUMPTION. The long term effect is an a priori part of the model used - not the actual long term effect itself.