CBO: Obama stimulus harmful over long haul

President Obama has only been "president" for 19 days, but I didn't think I would have to say "I told you so" so quickly. In 19 days, the Obama Administration has looked more like a bad episode of The West Wing, except we, the American people, cannot turn off the TV and delete the episode from our DVR memory bank. From nominated cabinet and advisory members who can't pay his or her taxes (now I understand why Democrats want to raise taxes...they don't pay them) to prematurely signing an executive order to close Gitmo without any clear plan or understanding of a judiciary process that involves Illegal Combatants as expressed in the Geneva Convention. Then, by reinstating an executive order that helps to fund abortions around the globe and the debacle that has become known as the "European Socialism Act" (a.k.a economic "stimulus" package). Obama's inexperience and lack of political common sense has created a presidential administration that appears to be "trigger happy" with no regard for future consequences.

Government: the act or process of governing ; specifically : authoritative direction or control.

Does this define our government? Do they REALLY govern, or is this just a big partisan chess game that rewards those who get to play? Our leaders couldn't be more oblivious to reality and common sense. With Obama not far behind, let's send everyone who has had any input on this economic "stimulus" package to Gitmo where they can govern people who have the same rational thinking as them...the destruction of America.

A report from the Congressional Budget Office by Stephen Dinan:

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.

CBO estimates that by 2019 the Senate legislation would reduce GDP by 0.1 percent to 0.3 percent on net. [The House bill] would have similar long-run effects, CBO said in a letter to Sen. Judd Gregg, New Hampshire Republican, who was tapped by Mr. Obama on Tuesday to be Commerce Secretary.

The House last week passed a bill totaling about $820 billion while the Senate is working on a proposal reaching about $900 billion in spending increases and tax cuts.

But Republicans and some moderate Democrats have balked at the size of the bill and at some of the spending items included in it, arguing they won't produce immediate jobs, which is the stated goal of the bill.

The budget office had previously estimated service the debt due to the new spending could add hundreds of millions of dollars to the cost of the bill -- forcing the crowd-out.

CBOs basic assumption is that, in the long run, each dollar of additional debt crowds out about a third of a dollars worth of private domestic capital, CBO said in its letter.

CBO said there is no crowding out in the short term, so the plan would succeed in boosting growth in 2009 and 2010.

The agency projected the Senate bill would produce between 1.4 percent and 4.1 percent higher growth in 2009 than if there was no action. For 2010, the plan would boost growth by 1.2 percent to 3.6 percent.

CBO did project the bill would create jobs, though by 2011 the effects would be minuscule.