From the CBO report: http://www.cbo.gov/sites/default/files/cbofiles/attachments/05-25-Impact_of_ARRA.pdf ARRA’s Long-Run Effects In contrast to its positive near-term macroeconomic effects, ARRA will reduce output slightly in the long run, CBO estimates—by between zero and 0.2 percent after 2016. But CBO expects that the legislation will have no long-term effects on employment because the U.S. economy will have a high rate of use of its labor resources in the long run. ARRA’s long-run impact on the economy will stem primarily from the resulting increase in government debt. To the extent that people hold their wealth in government securities rather than in a form that can be used to finance private investment, the increased debt tends to reduce the stock of productive private capital. In the long run, each dollar of additional debt crowds out about a third of a dollar’s worth of private domestic capital, CBO estimates. (The remainder of the rise in debt is offset by increases in private saving and inflows of foreign capital.) Because of uncertainty about the degree of crowding out, however, CBO’s range of estimates of ARRA’s long-run effects reflects the possibility that the extent of crowding out could be more or less than one-third of the added debt. Over the long term, the output of the economy depends on the stock of productive capital, the supply of labor, and productivity. The less productive capital there is as a result of lower private investment, the smaller will be the nation’s output over the long run.
In other shocking news, buying food and eating it leaves you with less money than you would have had if you didn't buy food. barfo
The CBO report wasn't very favorable to the stimulus proposed and enacted at all. The spending multipliers mostly sub 1.0 (a cost, not a benefit). The bump to GDP negligible. The cost per job created on the order of $500K (best case) to over $1M (realistic case). The summer of recovery never happened. Yet Obama's out bragging about 4M new jobs created, but those are since the stimulus spending ENDED, not due to the spending.
Yep. Without the stimulus, this country would have starved / collapsed. :MARIS61: :MARIS61: :MARIS61:
