White House report says stimulus delivers
WASHINGTON - President Obama's $800 billion-plus economic-stimulus law might not be earning good grades with Republicans and the public, but the White House asserts the program is on track to produce the promised 3.5 million jobs.
WASHINGTON - President Obama's $800 billion-plus economic-stimulus law might not be earning good grades with Republicans and the public, but the White House asserts the program is on track to produce the promised 3.5 million jobs.
Friday's report says two-thirds of it has been spent via tax cuts or government spending and remarkably little - 0.2 percent, far lower than the norm - has drawn fraud investigations.
The stimulus bill was passed in February of last year to try to stem the worst recession since the Great Depression. The White House and many economists credit it with giving the economy a needed jolt. Republicans say it has been ineffective, citing an unemployment rate still just under 10 percent.
"We continue to show consistent progress on your commitment to create or save 3.5 million jobs by the end of calendar year 2010," Vice President Biden wrote in presenting the report to Obama.
The idea driving the stimulus bill was to inject demand into the economy through federal tax cuts and spending.
The report says $300 billion has gone out for jobless benefits, government projects, and grants to states to avert layoffs of workers. An additional $243 billion has gone to businesses and individuals in tax cuts, including Obama's signature "Making Work Pay" tax credit of $400 for individuals and $800 for couples.
The White House points to the nonpartisan Congressional Budget Office in saying the stimulus is delivering.
The CBO's latest estimates, in August, say the legislation may be responsible for as few as 1.4 million jobs - or as many as 3.3 million. The administration points to the high end of the wide range.
The White House report also cites a study by economists Mark Zandi, of Moody's Analytics, and Alan Blinder, who estimated that unemployment would have spiked to 11.6 percent by the end of this year without the stimulus.
Still, frustrated voters give the stimulus low marks in opinion polls, such as a CBS News survey in July in which 56 percent said it had no impact.
