Dobbs misrepresents CBO projection of stimulus plan's effect on output
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SUMMARY: 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.
During the January 27 edition of his nationally syndicated radio show, Lou Dobbs falsely claimed 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.
In January 27 prepared testimony before the House Budget Committee, CBO director Douglas W. Elmendorf stated, "In CBO's judgment, H.R. 1 would provide a substantial boost to economic activity over the next several years relative to what would occur without any legislation. With the legislation, CBO estimates, output would be between 1.3 percent and 3.6 percent higher at the end of this year, higher by a similar amount at the end of next year, and 0.5 percent to 1.4 percent higher at the end of 2011."
From Elmendorf's prepared testimony:
In CBO's judgment, H.R. 1 would provide a substantial boost to economic activity over the next several years relative to what would occur without any legislation. With the legislation, CBO estimates, output would be between 1.3 percent and 3.6 percent higher at the end of this year, higher by a similar amount at the end of next year, and 0.5 percent to 1.4 percent higher at the end of 2011. That additional production would raise the demand for workers, turning some part-time jobs into full-time jobs and boosting the number of people employed. 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.
From the January 27 edition of United Stations Radio Networks' The Lou Dobbs Show:
DOBBS: After one week in office, the president of the United States wants Congress to pass a trillion -- just about a trillion-dollar economic stimulus package -- a piece of legislation. No one has read it. No one knows what's in it. No one has seen an analysis of it -- an intelligent, profound analysis of it by the Congressional Budget Office, for example. So, here we go. Let's have Congress vote on it. That's the attitude.
[...]
DOBBS: You know, I was just going through the -- 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. Do you realize that with a trillion dollars, we could put -- if we put a trillion dollars in the hands of everybody, that would be a 7 percent increase in the economy in one year? That could be done overnight. I mean, it's just crazy what these people are thinking about and calling themselves economists and public policy makers. It's scary.
Have another drink Lou.
Where's the cute little emocons you trolls like to use with your silly off-topic statements?
I don't see how being .1% off when he specifically said "somewhere between". That alone indicates the numbers are not going to be exact. I guess the hatred from the left outweighs sensibility.
CBO projects an increase of upwards of 5%.
Why does mmfa say it will increase 3.6%? Mmfa "misrepresents CBO projections" moreso than Dobbs. Where's the whinning headline about that misrepresentation?
It's the the CBO that estimates that output would increase between 1.5 percent and 3.6 percent in the first year. And it's the CBO that projects an increase of upwards of 5% in 2011.
... and Media Matters provides this infomation very clearly and plainly.
Maybe I'm missing something, but it sounds like Lou's right on the money here...
.... unless we're nitpicking over the 0.1% difference between 3.5% and 3.6%
I think the nitpick is that Lou doesn't mention that the increase he's talking about is for the first year alone.
I know nothing about the economy but that part was clear to me. I have a question that'll show how little I know about this stuff... Dobbs says "if we put a trillion dollars in the hands of everybody, that would be a 7 percent increase in the economy in one year" and the CBO projects a 5 percent increase in year three for its projection on the stimulas plan (which Dobbs ignores). So, what happens in years 2 and 3 under Dobbs' plan?
Lou, such an economist, put a trillion dollars in the hands of eveyone? I guess if we each got a trillian dollors we would not have to worry about money.