It’s not just President Obama’s Council of Economic Advisers that is saying that the federal stimulus plan helped the economy and created jobs. Leading private analysts have reached the same conclusion. The Council of Economic Advisers reported that the spending and tax cuts enacted last year added between 2.7 and 3.2 percent to the economy and saved or created about 3 million jobs. That closely matches recent studies by IHS Global Insight, Macroeconomic Advisers, and Moody’s Economy.com that estimated that, without the stimulus, the U.S. gross domestic product would be lower and the unemployment rate would be significantly higher.
Many people complain that the stimulus didn’t work because unemployment rates remain high. But Washington Post economics writer Ezra Klein wrote: “The question is not where unemployment rates are today. It’s where they’d be without the stimulus.” However, there is also the question of whether these benefits were worth the high cost.
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