Palin’s economic analysis relies on faulty claims
Posted in Main Blog (All Posts) on November 1st, 2010 4:44 am by HL
Palin’s economic analysis relies on faulty claims
Sarah Palin criticized the Obama administration over the “jobless recovery,” saying the stimulus “did not work.” But numerous independent and private analysts have agreed that the stimulus significantly raised employment.
Palin claims stimulus “did not work”
Palin: “We know that the stimulus, the nearly trillion dollars that were spent that just created more debt, did not work.” On the October 31 edition of Fox Broadcasting Co.’s Fox News Sunday, Palin said: “I believe things are getting worse. We have still this jobless recovery. We know that the stimulus, the nearly trillion dollars that were spent that just created more debt, did not work. And yet [President Obama] still talks about more bailouts, more stimulus.”
Independent and private analysts: Stimulus significantly raised employment
CEA: ARRA raised employment “by between 2.5 and 3.6 million.” In its fourth quarterly report on the American Recovery and Reinvestment Act (ARRA) of 2009, the White House’s Council of Economic Advisers (CEA) stated that “as of the second quarter of 2010, the ARRA has raised employment relative to what it otherwise would have been by between 2.5 and 3.6 million. These estimates are broadly consistent with the direct recipient reporting data available for 2010:Q1.”
Independent analysts agree that recovery act significantly raised employment. In its quarterly report, the CEA included figures from independent analyses that also credited the recovery act with increasing employment:
CBO estimates stimulus increased employment by up to 3.3 million jobs. The nonpartisan Congressional Budget Office (CBO) estimated in August that as of the second quarter of 2010, the stimulus “[i]ncreased the number of people employed by between 1.4 million and 3.3 million.”
