According to a new report released today by the nonpartisan Congressional Budget Office (CBO), the American Recovery and Reinvestment Act boosted the country's real GDP by up to 4.5% in the second quarter of 2010, and increased the number of American jobs by as much as 3.3 million.
These gains would not have been possible under Congressional Republican leadership. In fact, the Republican 'economic policies' laid out today by House Republican Leader John Boehner would eliminate these jobs and GDP growth.
From the report:
… CBO estimates that ARRA's policies had the following effects in the second quarter of calendar year 2010:
They raised real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.5 percent
Lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points
Increased the number of people employed by between 1.4 million and 3.3 million
Increased the number of full-time-equivalent jobs by 2.0 million to 4.8 million compared with what would have occurred otherwise
In a report published the same day as Minority Leader John Boehner’s criticism of President Obama’s economic policy, the CBO said the stimulus law boosted the economy by between 1.7% and 4.5%, lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points and increased the number of people employed by between 1.4 million and 3.3 million.
In practice, that means the stimulus plan is the main reason the U.S. economy grew during the second quarter.
The massive stimulus package boosted real GDP by up to 4.5 percent in the second quarter of 2010 and put up to 3.3 million people to work, the nonpartisan Congressional Budget Office said on Tuesday.
CBO’s latest estimate indicates that the stimulus effort, which remains a political hot potato ahead of the November congressional elections, may have prevented the sluggish U.S. economy from contracting between April and June.
Speaker Pelosi on the report:
The new CBO report confirms other independent reviews that the tough decisions made by Democrats have started the difficult job of economic recovery. Inaction –the course proposed by House Republican Leader John Boehner and his party — would have meant 3.3 million more unemployed, on top of the 8 million who lost their jobs due to the failed Bush economic policies supported by Republicans in Congress. We will not go back to that 'exact same' failed agenda, as Mr. Boehner and Republican leaders have promised.
Today's CBO report reiterates what top economists Mark Zandi and Alan Blinder wrote just a few weeks ago about the Recovery Act and other government action taken in response to the economic crisis. Their report found that without the government's response — including the Recovery Act — “the unemployment rate would have peaked at 16.5%;” there would have been about 8.5 million fewer jobs, on top of the more than 8 million already lost; and the nation's GDP would be about 6.5 percent lower this year.