Friday, July 01, 2011

Stimulus projections and reality

According to the Arizona Free Republic,
Back in January 2009, Christina Romer and Jared Bernstein produced a report estimating future unemployment rates with and without a stimulus plan. Their estimates, which were widely circulated, projected that unemployment would approach 9% without a stimulus, but would never exceed 8% with the plan.
This link to the Free Republic article shows that unemployment went significantly higher, and has remained higher than it was projected to do even if their had been no stimulus at all. In other words, the Obama administration flushed hundreds of billions of dollars down the hopper and not only did they not make things better, they made things worse than their own projections of what would happen if we did not pass the stimulus!

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