Saturday, March 14, 2009

Fund on CBO Numbers

"The House asked the Congressional Budget Office to estimate the economic impact of the new $800 billion stimulus plan. On Monday CBO came back with its astonishing reply: The whole thing is a net long-term negative for the economy.

"CBO does say there will be 'positive near-term effect' over the next couple of years as GDP rises from the deluge of spending and debt. But, the agency adds, 'the legislation will reduce output slightly in the long run.' And remember: The CBO is run by the Democrats, [CBO Director Douglas] Elmendorf was selected by the Democrats, the Democrats can get rid of him if they wish, and even he says the plan will make America poorer.

"We were told...that the bill would fund long-term investments in solar power, weatherizing homes and Amtrak trains that were going to pay dividends for years to come. Just the opposite is's highly disconcerting that even Keynesians say that, in five or six years, we'd be be better off without Mr. Obama's stimulus."

-- John Fund, Wall Street Journal

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