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Ignoring stimulus effects, CNN's Romans uncritically reported "safety net spending doesn't necessarily create new jobs"

February 03, 2009 3:37 pm ET

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SUMMARY: During a segment on the economic recovery legislation, CNN's Christine Romans asserted, "If your point is to create new jobs, the safety net spending doesn't necessarily create new jobs." But Romans ignored the connection between gross domestic product growth caused by that "safety net spending" and job creation. Congressional Budget Office director Douglas W. Elmendorf has testified that transfers to persons, such as unemployment insurance and nutrition assistance, are effective tools to stimulate GDP growth and that the stimulative effect on GDP leads to job creation.

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