The Congressional Budget Office late Monday said it estimates that the federal stimulus package sustained between 600,000 and 1.6 million jobs in the third quarter, and raised gross domestic product by 1.2 to 3.2 percentage points higher than it would have been without the program.
That sound you just heard was Glenn Beck’s head exploding.
For all the talk about skyrocketing budget deficits, the massive expansion of government, and the spread of the socialist “disease” it looks the President’s stimulus bill is *gasp* working. When the Wall Street Journal is reporting that democratic economic policies are working, you know the GOP is in trouble. Oh well, so much for Republicans getting their Christmas wish this year. (Clearly they’ve been naughty). I suppose the country will just have to avoid collapse one more day. *sigh* Sadness.
But as Ezra Klein notes, the CBO analysis provides even more oh so interesting information for Democrats:
Leading the list of high-multiplier items is direct spending by the federal government, infrastructure aid to states and localities, other types of aid to states and localities, and transfer payments (think unemployment insurance and food stamps) to individuals. At the bottom of the list are corporate tax cuts, the new homeowner’s tax credit and individual tax cuts.
In other words, the breakdown of the stimulus shows us that the most effective parts of the stimulus were those championed by progressives (government spending, state aid, infrastructure investment) while the least effective were conservative policies democrats included in order to draw bipartisan support (that never showed up).
Government Spending: 1,649
Tax Cuts: 3
Damn it feels good to be a gangster.