The CBO is claiming that the stimulus bill created 1.4 and 3.1 million jobs. But what is missing is the number of jobs killed by the extra debt.
When the government increases the debt, they must sell bonds. When they sell bonds, investors must buy them. When money is being invested in bonds, capital for private industry dries up.
This logic is validated by the job numbers which show more government jobs while private industry is shrinking.
Another sin of commission is the true cost. Because the ARRA increased the number of government jobs, we are no on the hook for long term employment, expensive and increasing benefits and pensions.
But the do admit one thing:
Because that path cannot be observed, the new data add only limited information about ARRA’s impact. Economic output and employment in 2009 were lower than CBO had projected at the time of enactment.
In otherwords, we count the jobs added…not the jobs destroyed.
You can leave a response, or trackback from your own site.
Share on Facebook
Very astute and succinct analysis of a misleading headline! Applause!