CBO: Stimulus would harm long-term economyby Tim Manni
As the American Recovery and Reinvestment Act of 2009 — a.k.a. the Stimulus Package — grows like Topsy as it wends its way through Congress, it’s encountering growing opposition from the American public:
Support for the economic recovery plan working its way through Congress has fallen again this week. For the first time, a plurality of voters nationwide oppose the $800-billion-plus plan.
The latest Rasmussen Reports national telephone survey found that 37% favor the legislation, 43% are opposed, and 20% are not sure.
Two weeks ago, 45% supported the plan. Last week, 42% supported it.
Opposition has grown from 34% two weeks ago to 39% last week and 43% today.
One reason is that the package has surpassed $900 billion and shows few signs of slowing, despite Congressional opposition.
Now comes the Congressional Budget Office with its latest analysis of the package’s effect:
President Obama’s economic recovery package will actually hurt the economy more in the long run than if he were to do nothing, the nonpartisan Congressional Budget Office said Wednesday.
CBO, the official scorekeepers for legislation, said the House and Senate bills will help in the short term but result in so much government debt that within a few years they would crowd out private investment, actually leading to a lower Gross Domestic Product over the next 10 years than if the government had done nothing.
Somehow, that doesn’t sound like what a spending package meant to stimulate the economy should do.