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On his radio and television shows, Bill O'Reilly claimed that the food-stamp provision in the economic recovery bill will not stimulate the economy. But economists, including the director of the bipartisan Congressional Budget Office and a reported adviser to the presidential campaign of Sen. John McCain, disagree.
The Politico reported the GOP claim that "it may take years before the stimulus plan spurs real job growth" and highlighted a video showing "a Joint Committee on Taxation staffer tell[ing] Michigan Rep. Dave Camp that he can't promise that the $275 billion in tax cuts in the stimulus will create any new jobs." In fact, CBO director Douglas Elmendorf has stated of the bill: "According to CBO's estimates, the number of jobs would be between 0.8 million and 2.1 million higher at the end of this year, 1.2 million to 3.6 million higher at the end of next year, and 0.7 million to 2.1 million higher at the end of 2011."
USA Today claimed in an article that the "rising cost" of the economic stimulus bill "could be a challenge" for President Barack Obama, noting that a provision intended to "protect about 24 million Americans from paying higher taxes under the alternative minimum tax [AMT]" constituted the "major Senate addition" that increased the bill's cost. However, USA Today did not point out that the amendment was added by Republican Sen. Charles E. Grassley.
On The O'Reilly Factor, Dick Morris asserted that the economic recovery bill "won't work," in part because "two hundred billion of it is just money to the state. That just stops taxes from going up, but it doesn't stimulate anything." However, economist Mark Zandi testified to Congress that "aid to financially-pressed state governments" is an "economically potent stimulus," and a table provided with his testimony indicated that aid to states would boost GDP by $1.36 for every dollar spent. Similarly, information that the CBO provided to Congress shows that aid to states produces a greater "cumulative impact on GDP" than do tax cuts.
Why does the Village suddenly think GOP members of Congress hold all the answers to fixing our economic woes?
Maybe one gasbag or spokesmodel could ask them why no matter whether the country is economically doing well or doing badly, their advice is always tax cuts. It's infuriating to see them swarm the television and have to watch the media listen to their "analysis" and swallow it whole. If I didn't follow politics closely, I would think these people are the ones who won the election.
In numerous instances, the media have falsely stated or suggested that a CBO analysis of less than half of the economic recovery bill examined the entire bill, resulting in the false suggestion that the analysis, in the words of the Politico, "shows very little money will be spent in the first six or so months after enactment" of the recovery plan. But as the AP noted, the CBO analysis did not "cover tax cuts or efforts by Democrats to provide relief to cash-strapped state governments to help with their Medicaid bills." Six days later, some outlets were still making the false suggestion.
On his radio show, Rush Limbaugh allowed Rep. Eric Cantor to falsely claim of the American Recovery and Reinvestment Act of 2009: "Even the Congressional Budget Office ... says it is not a stimulative bill." In fact, the CBO stated in its January 26 report: "CBO anticipates that implementation of H.R. 1 would have a noticeable impact on economic growth and employment in the next few years," while the CBO director said that the bill would "provide massive fiscal stimulus."
The Washington Times has recently published several articles noting* a partial Congressional Budget Office analysis of the stimulus bill to support claims that most of the money in the bill would not be spent quickly. But in an article reporting former comptroller general David Walker discussing CBO's analysis of infrastructure spending and a separate article reporting that "[c]ritics say Obama's economic bill lacks stimulus," the Times ignored the conclusion of a more recent CBO analysis of the entire bill that 64 percent of the combined cost of the spending increases and tax cuts in the bill would occur by September 30, 2010.
Lou Dobbs falsely claimed on his radio show that "the Congressional Budget Office did a study on the president's so-called economic stimulus package. It says output would be increased somewhere between one and a half, three and a half percent." In fact, the CBO estimated that output would increase "between 1.5 percent and 3.6 percent" in fiscal year 2009 alone and estimated that output would increase as a result of the stimulus package in subsequent years as well.
Fox News' Glenn Beck falsely claimed that "[o]nly 3 percent" of the Democratic economic stimulus plan would be "spent in the next 12 months." Beck's figures were based on a partial Congressional Budget Office cost estimate that excluded faster-moving provisions in the bill. According to the CBO's full cost estimate of the bill, 11.2 percent of the $816 billion bill would be spent in the first seven-and-a-half months after the bill is enacted, and, when including the bill's tax cut provisions, $169 billion -- or 20.7 percent of the bill's total cost -- would take effect in the first seven-and-a-half months.
The Hill's Jared Allen repeated the false claim that ACORN is, in Allen's words, a "beneficiar[y] of the stimulus package," and uncritically reported NRCC communications director Ken Spain's false suggestion that the stimulus bill includes "a $4.2 billion bailout" for ACORN. In fact, the bill does not mention ACORN or otherwise single it out for funding. Additionally, the bill requires that the $4.19 billion it allocates for "neighborhood stabilization activities" be distributed through competitive processes.
Fox News' Carl Cameron falsely claimed of the economic recovery bills: "In both the House and Senate packages, more than half of the money is reserved for at least two years from now, and Republicans argue that that's simply not good enough." In fact, the Congressional Budget Office has estimated that about 64 percent of the House version of the recovery bill would be paid out within 19 months, and about 86 percent by the end of fiscal year 2011.
On CNN's Lou Dobbs Tonight, Ed Henry asserted that the Congressional Budget Office's cost estimate of the economic stimulus bill "basically says that 52 percent of the money will be spent out over the next 18 months, that some 64, 65 percent of the bill will be paid out over the first two years." However, Henry's calculations are based on outlays only, excluding the plan's tax cut provisions. Including both outlays and tax cuts, the CBO estimated that about 64 percent of the recovery bill would be paid out within 19 months, and about 86 percent by the end of fiscal year 2011.