Democrats promised their 2009 stimulus law would get people back to work and jumpstart the economy. A look at the facts, however, tells a different story. As we approach the one-year anniversary of passage of the stimulus bill 49 out of 50 states have actually LOST jobs.

On January 26, 2010, the Congressional Budget Office revealed that this failure to create jobs has raised the law’s price tag from the original $787 billion to $862 billion – an increase of $75 billion.

The reason? Higher than expected unemployment and greater payouts of unemployment benefits, among other causes.

January 26, 2010 Congressional Budget Office Analysis:

* “When ARRA was being considered, the Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) estimated that it would increase budget deficits by a total of $787 billion between fiscal years 2009 and 2019.” (page 95)

* “CBO’s current projection of ARRA’s budgetary impact over the 2009–2019 period—a total increase in deficits of $862 billion—is about $75 billion greater than the agency originally estimated.” (page 98)

* "Although total spending from ARRA in 2009 was roughly in line with CBO’s estimate, the cost of some individual components varied from the amounts initially anticipated. Most significantly, outlays for additional unemployment compensation were about $10 billion higher than CBO originally estimated, because the unemployment rate was higher than anticipated and people continued to collect benefits for a longer period of time.” (page 97)

From Big Journalism:

Former Obama economic advisor, Clinton Secretary of Labor, and Berkely Prof. Robert Reich claimed yesterday in his column at Salon.com that Fox News played a role in the conservative resurgence of 1994:

In December 1994, Bill Clinton proposed a so-called middle-class bill of rights including more tax credits for families with children, expanded retirement accounts, and tax-deductible college tuition. Clinton had lost his battle for healthcare reform. Even worse, by that time the Dems had lost the House and Senate. Washington was riding a huge anti-incumbent wave. Right-wing populists were the ascendancy, with Newt Gingrich and Fox News leading the charge. Bill Clinton thought it desperately important to assure Americans he was on their side.

But Prof. Reich overlooked one minor detail: Fox News Channel’s first broadcast wasn’t until October 7, 1996.

The plan for FNC wasn’t even outlined until January of 1996, so what could explain such a patently false claim? Is the professor suggesting that even in 1994, Fox News’ imminence did in fact play a role in the political upheaval of that year?

Or is this a moment where Fox Derangement Syndrome enters the realm of full-blown paranoia?

Either way, where was Salon on this one to save Reich from himself? And would Prof. Reich tolerate fact-checking this poor from his college students?

Update... More from Big Journo:

Salon corrected the mistake. Reich’s article was cross-posted at Huffington Post (yet to be corrected) and at RobertReich.org, where the professor took out the error and replaced it with a dig at Fox News.

Of course, readers of your blog would have known much of this already via Mick’s post on David Brooks's ramblings on the “educated class,” and his crystal ball readings the day before the Massachusetts Senate election.

Michael Barone writes up the same stuff beautifully a week later, and proves it carefully with data.

Bottom line: The Democratic candidate held “the educated class” corridor, but failed to generate good turnout or high percentages in the factory and mill towns. The other corridors swung heavily to the Republican candidate. Under Barack Obama, who has chosen to live all his adult life in university neighborhoods, the Democratic Party has been reduced, at least in Massachusetts and in this special election, to “the educated class”—and not much else.

Posted by Donald L. Luskin at 9:54 AM | link  

Posted by Donald L. Luskin at 9:50 AM | link  

Monday, January 25, 2010

Posted by Donald L. Luskin at 5:38 PM | link