CNN Fact Checkers Get It Wrong on the Stimulus

Please Enroll Responsibly: http://goo.gl/jq5Ij (Amazon.com Link) By Lee Doren

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http://www.cbo.gov/doc.cfm?index=12185

http://politicalticker.blogs.cnn.com/2011/09/13/fact-check-did-the-stimulus-c...

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• Rick Perry
• Stimulus
• Created
• Zero
• Jobs
• 800 Billion
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[iamaliberal]

Nothing new with CNN. Same old same old

[TWSceptic]

Stimulus noun, plural -li

1. the lie that by stealing money from person A, and simply spending it in the market, it is possible to create a new job for person B.

[jeffiek]

@cnelson711 "government deficit spending would result"

It's trivial, even at 0% interest ( with one caveat ).

If A borrows money, that money is not available to B.

The caveat: Money can be printed.

However this also fails:

C ( the entity doing the loaning ) has $1 (the entire money supply).

A ( gov't/Fed ) prints $1. C now has only half the money supply, the REAL value has decreased. C now has less REAL money to lend out.

[CapPicard]

One example: a highway interchange project "funded" by the "stimulus" was quoted as costing $775,000 with 2.33 jobs "created/saved" in 2009 as per recovery . gov.

Today, very same project claims 0.00 jobs "created/saved." What a load of crap!

[ConservativesVideo]

CNN fact checkers? I'd see pigs fly before I see a CNN fact checker. CNN = Communist News Network.

[beigelycheenut]

@ThePatcam Hey, if I was too stupid to make any proper counterpoints, I'd make moronic comments like yourself. And everyone is a product of propaganda to some degree, in some way. To deny it is to point to yourself and say, "I'm a smug asshole."

But then again, I'm not surprised to see a dumb comment from a Noam Chomsky fan. "Intellectuals and Society" - read it.

[bsharker]

@HumbleWillis Dumbocrat Math never fails to amuse...

-Gov stimulus spending = more jobs

-more Education spending = better testing results & less dropout rates

-Gov set price controls = more affordable & attainable

-More Gov spending = less deficit

On some other planet their fantasy economics may work well. But their weak link is this is earth.

[HumbleWillis]

I've got a liberal friend who is 100% convinced that the stimulus worked and that it created jobs and that things would have been so much worse without it. He believes things are still bad because it didn't go far enough (we didn't spend enough on it). I'm going to share this video with him ... hopefully he'll wake up and come back to reality.

[YatharthROCK]

How do you do those ripple effects when you click the mouse?

Great video.

Are you on Google+? If so, add me.

[cnelson711]

Crowding Out - An increase in INTEREST rates caused by government borrowing. I.E. Private enterprise borrows money when it thinks it can get a return on the borrowed money greater than the interest rate.

It's hard to make a case that any government deficit spending would result in crowding out private investment right now... interest rates are at an all time low.

[PatriotsRepublic]

@dinguspingus1 To continue my last post. Jobs in the public sector are so much more than what you see. The bureaucrat who you see requires pay, benefits and eventually a pension. All of that must be taken from the private sector by force. All jobs in the private sector exist because of voluntary transactions. No force is required to create or keep private sector jobs... they exist because they provide services or products that people are willing to voluntarily pay for.

[PatriotsRepublic]

@dinguspingus1 that is where you are quite wrong. A job isn't just a job in the public sector... but it is just a job in the private sector. In the private sector, the employee must produce nearly double what he costs in order to keep his job. As long as he does this, his job remains safe. In the public sector, no matter what kind of production comes from an employee, if he or she can embed themselves into the system, the system will take their compensation from the private sector by force.

[Ooftyman]

The problem with multipliers is this: velocity means NOTHING in the long run. Keynesians never seem to understand that if you put 3 million people in a giant pool to slosh water around, nothing new is created, and some water is lost by throwing it out of the pool.

[Groudie101]

Lee this isn't anything new buddy. This is classic CNN.

[tjagolf33]

EXACTLY! The CBO's purpose is to score legislation, not provide economic insight. This is the same reason why the CBO's Obamacare numbers have been proven to be so far off the mark--they had to score it based upon the assumptions within the legislation (i.e. lower health care premiums, increased employer coverage, etc.). People who cite the CBO do it for purely political purposes. They may be non-partisan, but they by nature have to assume the mindset of whichever party's legislation they read.

[6024691380]

@TheAce1082 confidence? i think stability would cause the most confidence. a surplus (savings) is great, but better the citizens have the surplus, not the governmment. The citizens allocate savings more efficiently. Recessions are necessary, but they signal the need to conserve, contract and even deflate. So, we disagree on that. The USA has been MAD spending for a decade now, on all the wrong things. try reading a few daily articles on recessions at mises dot org

[TheAce1082]

@6024691380 yes but creating a stimulus generates confidence. It shows business leaders and the people that government isn't just sitting on their ass twiddling their thumbs. it shows that they are doing something at least. In a recession there should be more government spending. In a boom there should be less government spending. All countries should have a surplus that they can use when a recession comes. Recessions are inevitable, its part of the free market.

[jessebthelib]

@john42t of course you wouldn't debate what was said you would rather insult me.... very typical...

[Brewmiker]

@bushonomics Spending borrowed money does not equal stimulus. If government jobs are what you're looking for-and the government is broke-unemployment might create stimulus. Halting unemployment would create jobs, almost immediately. Real jobs with real money.

[john42t]

@jessebthelib "stop blocking"? You're stalking this guy with fake accounts?

[UTubekookdetector]

BUSHO: G.W. Bush did the same thing on a much smaller level late in his disastrous presidency. They both love stimulus (borrowed from China). In addition, I remember what Bernstein & Romer were saying about what unemployment would do if the ARRA was signed. It didn't happen. I am not convinced when the govt's best thinkers say "X will cost Y" (e.g. the 1965 projection of Medicare's costs in 1990 were way off). Usually they are wrong. The ARRA saved a slew of govt jobs, how does that help?

[eggory]

@bushonomics I used to take this argument for granted but now I really don't understand it. Nobody stashes their money in a vault at home anymore. If you want to "save" money instead of spending it, what that really means is that you're investing the money. So what you're claiming is that poor people have a tendency to spend their money instead of investing it, and it is not at all clear that that is a postive thing for the economy. It even seems to me it would be negative.

[bushonomics]

@6024691380 Your quote: "We will never know how well the economy would have fared on its own without [the stimulus'] influence. We will never know if the government actions yielded better results than the market would have."

So what? That's not the point here.

The point of this video is to support the claim that the stimulus created zero jobs (untenable), AND that the CBO is dodging the issue (they aren't), AND that market multipliers are used by the evil guvmint to obfuscate data (yawn).

[bushonomics]

@Moragauth

We are already making progress, in the sense that we are both working on the correct assumption that the stimulus created jobs :) HTWW and others like to claim that it had zero effect, which is wishful thinking at best and deliberate misrepresentation at worst.

Unemployment benefits result in some of the greatest $ for $ economic stimulative effects, because unemployed people spend every single dollar they get.

If you would like citations, let me know.

[Bleuski3]

@6024691380 I didn't say the stimulus was successful, did I? Reading comprehension is a valuable skill.

[6024691380]

@Bleuski3 the stimulus was amazingly successful, just like the others eh? cash for old cars, energy star, $600 checks to everyone, shit like that? really, the government manages finances and allocates capital so well. Where would we be without their spending. The depression is coming my friend, you haven't been "saved" from anything.