American Sauce: Obama's stimulus bill
February 24th, 2011
04:25 PM ET
3 years ago

American Sauce: Obama's stimulus bill

Capitol Hill (CNN) – Did President Obama's stimulus bill help at all? And how much did that package of spending cost in the end?

The Congressional Budget Office just provided some new answers. (We at American Sauce confess to checking the CBO webpage for fun.)

The summary? Government analysts now believe the 2009 stimulus bill, or American Recovery and Reinvestment Act or ARRA, will cost $821 billion over ten years. That's an increase of $7 billion over their last estimate.

How many jobs did it provide? CBO says the stimulus bill funded the equivalent of at least 2 million full-time jobs, and up to 5 million full-time jobs, at its peak in mid-2010.

But don't just settle for those headlines, read more.


Stimulus Costs – CBO Conclusions

- Cost of the stimulus bill will be $7 billion higher than expected.

- The increase comes mostly from unexpected increases in Medicaid.

- CBO now believes the stimulus bill will cost $821 billion over ten years (2009-2019).

Jobs & The Economy – CBO Conclusions

- The stimulus bill funded between 2 million and 5.2 million full-time equivalents at its peak in mid-2010.

- CBO does not conclude how many total jobs were funded over the past two years.

- The unemployment rate dropped between 0.7 and 2 percentage points in 2010.

- The stimulus bill boosted GDP between 1.1 and 4.6 percent during each quarter of 2010.

Reward For Reading This Far

- Interest Rates: CBO concluded the Federal Reserve will raise interest rates at the end of 2011, not in 2012 as last predicted.

- ARRA is fading: CBO says 70 percent of its impact was felt in 2009 and 2010.

- Stimulus Peak: Was in the first half of 2010. CBO expects jobs coming from the bill will "drop sharply" this year.

For more nerdy, fast and good information, follow Lisa on Twitter: @LisaDCNN


Filed under: American Sauce
soundoff (35 Responses)
  1. Bill

    Is this another guess by the CBO? Like the last time they projected the cost? Or maybe it is like the Health Care Bill they keep changing the numbers on?

    February 24, 2011 04:35 pm at 4:35 pm |
  2. The Real Tom Paine

    Uh oh, don't tell the truth, it will make a conservative's head explode.

    February 24, 2011 04:35 pm at 4:35 pm |
  3. DemoCommunists for a Better Way - Bankruptcy

    - The stimulus bill funded between 2 million and 5.2 million full-time equivalents at its peak in mid-2010.

    then this:

    - CBO does not conclude how many total jobs were funded over the past two years.

    ==================================================================================

    What the heck kind of drivel is this? Doublespeak beyond belief!

    This joke of a bill was such a success that unemployment rose a full 2% points HIGHER than they claimed it would, AND HAS STAYED THERE. Anybody who believes this leftist spending spree did ANYTHING but waste nearly a trillion dollars (that we had to borrow and our children will have to repay) is not living in the real world. Donkey Democrats think taxiing and spending by the federal government cures all ills.

    February 24, 2011 04:40 pm at 4:40 pm |
  4. Four and The Door

    Taking average numbers, the Grand Stimulus Experiment apparently cost about $250,000 per job.
    If this is the case, hopefully Obama, Pelosi and Reid won't try to claim this was about jobs. If this was it they proved that the Federal Government must never use massive spending to create jobs.

    An interesting side note would be how much these millions of jobs paid on average. I'll guess it's less than 20% of what the American taxpayer paid for each "job" they claim was saved. Even using these numbers, no bargain that's for sure!

    February 24, 2011 04:41 pm at 4:41 pm |
  5. Inmyopinion

    No, because those that received stimulus money did not create permanent jobs which is what families need. My opinion is that people look around, do their own homework, make their own list of those jobs created by the stimulus money and then decide if those in the media, newspapers, magazines, etc... are correct in their reports. Ask yourselves, is there a difference in your own town from the stimulus money?

    February 24, 2011 04:46 pm at 4:46 pm |
  6. S. In California

    And just what would ole Johnny and Silly Sarah have done? Nothing. Nothing except go to more wars and let the homeless and unemployed FIND THEIR OWN WAY. Just like they did (Johnny married a millionaire and the mouth piece sold hatred). That's their interpretation of the American dream. I got mine now go and get yours.

    February 24, 2011 04:51 pm at 4:51 pm |
  7. ConservaFascists

    Well it did what it was intended to do and that was to stimulate the economy. I don;t work at CBO, but I'm sure if the stimulus wasn't passed, alot more jobs would have been lost. That's something not indicated by the CBO: Jobs Saved

    February 24, 2011 04:52 pm at 4:52 pm |
  8. Me

    Jobs saved and a small decrease in unemployment. No Depression status= success. We are still here. we are still alive and will continue to grwo

    February 24, 2011 04:54 pm at 4:54 pm |
  9. Wire Palladin, S. F.

    At least the republicans can take pride in bringing us to the brink of a great depression with their unfunded wars, unfunded tax cuts, unfunded drug programs, unfunded extension of tax cuts for the wealthy, voting to repeal a health reform which would save America $230 billion.

    February 24, 2011 04:55 pm at 4:55 pm |
  10. Sgt Schultz

    It doesn't matter what the cynics say. The facts don't lie. Our economy was in the toilet and our financial system was on the brink of collapse. If we let McCain get elected we probably would have seen another Great Depression instead of a Great Recession.

    February 24, 2011 04:56 pm at 4:56 pm |
  11. lance

    this should be called the communist chinese loan not the stimulus package that obama and liberals like to refer it as.

    February 24, 2011 04:57 pm at 4:57 pm |
  12. BeanerECMO

    Remember, it said the stimulus "funded" between 2 million and 5.2 million full-time equivalents at its peak in mid-2010. Nothing is said about how many jobs it provided. The stimulus went to states one time to shore up their unfunded state employees' union pension funds; i.e., AFSCME, NEA, etc. In other words, the fiscal crises was just kicked down the road to this year. And, the governors of responsible states are doing what it takes to close their budget gap – STOP and CUT SPENDING.

    February 24, 2011 05:00 pm at 5:00 pm |
  13. Wire Palladin, S. F.

    The republican plan, let them fail. As long as billionaires and foreign corporations pay to elect right wing nuts, the bagger party will continue to destroy America. For the bible thumpers, this is clearing a case of survival of the richest.

    February 24, 2011 05:00 pm at 5:00 pm |
  14. mike

    I guess we should put a republican in office then they would get rid of fair wages in this country and we can work like the chinese start getting your kids ready for the labor force hey god bless america lets stay united when we need the poor to protect us but any other time just spit on them when they need help

    February 24, 2011 05:03 pm at 5:03 pm |
  15. CTinDC

    I love it when I see these comments make simplistic number crunching. 250,000 per job? are we that lost and unintelligent that we dont even care to learn all of what the stimulus entailed. It was not as elementary as giving a company a couple of million to hire people. Please read before you comment.

    February 24, 2011 05:07 pm at 5:07 pm |
  16. 100% ETH

    ...it does help very well. The EU, specially the GERM. Chancellor, were joking about the President's stimulus package. She/the Chancellor said, "...it's just a bubble. It doesn't help". But now, we seen the good results. Most of the big Companies did make more profits out of it. They hired Thousands of people. They even paid-back what they owed.

    Now, we proofed that the American Sauce is much better than our European counter partners. The Euros is Euroded like Volcano/VODCAno.

    February 24, 2011 05:08 pm at 5:08 pm |
  17. Sue

    This is a sickening, disgusting joke!!! This so called 'stimulus' would have done more good sending US citizens the money-instead of spending about $250,000 per job. And, don't forget--a lot of the jobs 'created' were those supposedly 'saved' by the stimulus--the only administration in our history that was allowed to have a "jobs saved' category. And the main stream media still tries to provide cover/support/lies/spin for this lying, fraudulent, corrupt administration.

    February 24, 2011 05:08 pm at 5:08 pm |
  18. Jon

    So basically, it either funded or saved 2 to 5.2 million jobs and did have an effect on unemployment. Sorry for all of those who are disappointed we didn't get more bang for our buck – and yes, I include myself among them – but at least this put us back on track.

    February 24, 2011 05:09 pm at 5:09 pm |
  19. Sniffit

    At least the republicans can take pride in bringing us to the brink of a great depression with their unfunded wars, unfunded tax cuts, unfunded drug programs, unfunded extension of tax cuts for the wealthy, voting to repeal a health reform which would save America $230 billion.

    February 24, 2011 05:16 pm at 5:16 pm |
  20. vet in texas

    Almost a trillion dollars to save the country from an economic collapse or almost a trillion dollars in tax cuts for the top 2%......which is more wasteful? Who benefits from either? and what do we get for these amounts?

    February 24, 2011 05:20 pm at 5:20 pm |
  21. Sue

    Inmyopinion: You are absolutely right......People just need to look at their own families, neighborhoods, cities, states, etc. to see if the "stimulus' really worked. Where are all of the 'shovel ready' jobs? Fortunately, the majority of Independents-who will decide the elections in 2012--are very much awake/aware of the lies, spin, manipulation, and fraud going on within the most corrupt administration in the history of our country.

    February 24, 2011 05:23 pm at 5:23 pm |
  22. Agnim

    Being spared the Second Republicon Great Depression isn't a bad thing!

    Had a Republicon become President, America wouldn't just wind up the Second Republicon Great Recession.
    It would have been "Hover time" Version 2 - the wild, warmongering & incompetent bush version of Republicon Depression.

    The great horrors is that sleeping Americans re-elected the nation's destroyers to finish off America.
    Guess when a nation's time is up, its time is up; and bad karma can't be avoided.
    It's like when a man's time is up, even he will kill himself. Same with America, re-electing republicons to off USA. Sad.

    February 24, 2011 05:24 pm at 5:24 pm |
  23. Sniffit

    " $250,000 per job."

    Is that really the best you morons can do? Almost HALF the Stimulus was TAX CUTS, credits and incentives, which are things the GOP consistently claims are the magic pixie dust that fixes everything and anything economic...altho we know that what they really mean is "but only when given to the ultra-wealthy and giant corporations." Moreover, if the people who consistently buy the inane talking point garbage you astroturfers show up to regurgitate every time there's any good news about Obama or the Dems weren't so stupid, angry, undereducated, bigotted and lazy, they'd bother to find the easily-googled pie charts and lists detailing what the breakdown of the Stimulus spending was and the numerous expert opinions about how it all works. Sadly, "President Darky is ruining America" is what they WANT to hear, so that's what they go looking for to the exclusion of all else....facts, evidence, expertise and historical record be d-mned.

    February 24, 2011 05:26 pm at 5:26 pm |
  24. Sniffit

    " And the main stream media still tries to provide cover/support/lies/spin for this lying, fraudulent, corrupt administration."

    Please tell us where the spin is in this article, which simply reports the findings of a group of overeducated economic experts whose opinions were brought to us by the letters P, H and D.

    February 24, 2011 05:28 pm at 5:28 pm |
  25. Sue

    CNN--where is the article about the CBO saying that the US is going to lose at 'least' 800,000 jobs due to Obamacare. I do not remember seeing that article here, did I miss it?

    February 24, 2011 05:37 pm at 5:37 pm |
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