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.
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