Recovery Act Has Created at Least 1 Million Jobs

 

Congressional Budget Office projects the recovery act will have a greater impact -- boosting gross domestic product by 1.4 to 4 percentage points and lowering the unemployment rate by 0.7 to 1.8 percentage points. - Photo Courtesy of Ohio Department of Transportation

Congressional Budget Office issued a report stating the American Recovery and Reinvestment Act added between 1 million and 2.1 million jobs during Fourth Quarter 2009. ARRA also raised economic growth by 1.5 to 3.5 percent during that period.

“The policies that were enacted in the stimulus bill are increasing GDP and employment relative to what it would otherwise be,” CBO Director Douglas Elmendorf said. His comments came as CBO released its quarterly analysis of the recovery act, as required by the law.

CBO has revised the overall cost of the recovery act from $787 billion to $862 billion over the 2009-2019 period. The revised cost reflects less revenue coming in because of the act’s tax cuts. Greater spending than originally estimated comes in thanks to greater demand for some of the act’s social benefits such as extended unemployment insurance and healthcare subsidies. ?EUR??,,????'?????<