CBO: Stimulus law will cost $43 billion more than estimated

The Congressional Budget Office said in a new report that President Obama’s economic stimulus law will raise the federal deficit $830 billion over ten years, $43 billion more than the initially estimated cost of $787 billion.

During the law’s consideration in Congress, the Joint Committee on Taxation made the initial estimate.

CBO estimated the law lowered the unemployment rate by between .6 and 1.8 percent in the first quarter of 2011 and increased the number of people employed by between 1.2 million and 3.3 million during that same period.

Obama and congressional Democrats enacted the law, arguing it would provide a quick jolt to the economy. Republicans opposed the law, saying it would increase deficits and wasn’t designed to work quickly.

CBO estimated the government spending in the law had a major impact on the economy, increasing the Gross National Product by as much as 4.6 percent in the second quarter of 2010.

However, the unemployment rate has continued to remain high since 2009, hurting Obama politically.

CBO  based its estimate on macroeconomic modelling, saying the jobs “created or saved” reports by recipients of stimulus dollars could not provide a full picture of the economic impact.

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  • Snake-Eyes

    I have often wondered just how much $ was spent on those signs like the one in the picture….seriously, what is the final cost of placing one of those signs? I bet one would be astounded at its cost.

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  • ballotbox

    A few things to remember, Omama took office jan, 09, sence then
    gal,gas,1.83 today 3.95 crude oil Europe,43.48 today, 99.02
    crude oil west tx, 38.74 today 91.38 corn 3.56 today 6.33
    soybeans 9.66 today 13.75 sugar cane,raw, 13.37 , today 35.39
    number food stamps recipients 31,983,716 today 43,200,878
    Regular household income, $50,112 today $49,777
    This is just a few of the things this administration has achieved, This is without the National debt going from 10.627 tr, to 14.052 tr. This is the hope and change the people that voted for him got! Nooooobama 2012!

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  • jar59

    An 830 billion dollar slush fund for public-sector unions and other Obama political allies and voter groups.

    This administration should be in prison.

  • flips

    I’m glad Obama we invested reparing US infrastructure.
    How does this $830 billion price tag compare?

    The Bush Medicare prescription drug program cost $272 billion.

    The wars in Iraq and Afghanistan cost $1.26 trillion through 2011.

    Bush’s tax cuts cost $1.5 trillion.

    • SignOfTheDollar

      In generally accepted accounting practices, a reduction in revenue is not show as an expense. Therefore, tax cuts DO NOT COST.

      The only thing that COST government is when they write checks payable to crack whores, bogus scientist studying ant farts and bailing out General Motors. This statement is not entirely correct either. It doesn’t government a damned thing, it cost TAXPAYERS.

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  • GeniousIQ

    This all started under Bush so let’s quit with the partisan BS. The banks and corporations are getting paid off on the backs of the middle class. Welcome to America, circa 1980 and on.

    • ladylove

      I don’t argue that Bush has full responsibility when he was in office, for what he did and did not do.

      then we have what Pelosi,, Reid, Dean, and a few others did when they controled the house, that set things in motion, that made things much, much worse.

      but the moment Obama took the oath of office, both on Jan 20, and 21, 2009 he took full responsibility for the way things were.

      Obama did not inherit a thing, nor has any President inherited anything, the good or the bad, from their predesessor, they choose to TAKE IT ON. and each and everyone of them did it willingly, and that includes Obama.

      and Obama promised to make things better, and all he has done is make things worse,

      unemployment is at it’s worse in something like 60 years.

      th4 so called stimulus package has done nothing to create jobs, but more to destroy jobs.

      cash for clunkers, ended up costing more to give a $4500.00 credit, than the cost of each vehicle bought.

      the so called housing rebate, was so full of fraud, and most by the very people in charge of regulating it, that it too, was a disaster.

      we have all seen and heard of the waste involved in the stimulus oackage, with money going to TAX CHEATS, and people who did not need it, to pet projects, and kickbacks.

      I can supply you with proof.

      and now they want even more money.

      please do not even attempt to put the blame all on Bush, whom I have no use for, and start putting it where it belongs, as of today.

      Bush may have added to this disater, but the democrats, did their best to make it worse, and then Obama added, and added, and added and continues to add, to the problem.

      • log cabin

        “nor has any President inherited anything..”

        So FDR didn’t inherit Great Depression from Herbert Hoover?

        • BigRmv

          Log Cabin, reading comprehension is not your strong suit.

          The lady clearly wrote, in her 3rd paragraph that, “…nor has any President inherited anything, the good or the bad, from their predesessor, they choose to TAKE IT ON. and each and everyone of them did it willingly…”

          So, no, according to her statement, FDR did not inherit the Great Depression. He accepted the job of running the country as it was.

          How often have we heard from the left that GWB didn’t inherit problems from W(B)JC and then had the left turn around and say, “Clinton gave Bush a surplus”? You don’t get it both ways (and BTW — A budget surplus vs. deficit is not the same as having revenue).