The Congressional Budget Office gave us a forecast preview Wednesday of the frightening fiscal catastrophe that threatens to engulf the government in a sea of debt.
Buried within the Congressional Budget Office's most recent report on the progress of President Obama's American Recovery and Reinvestment Act was a surprising admission: the CBO now estimates the stimulus might have been only half as effective as previously thought.
Bloomberg doubted Zandi and the President's projections, too. They surveyed 34 other economists. Not one was as optimistic as Zandi. In fact the average job creation estimate by the group was a paltry 288,000. Five said the legislation would produce zero new jobs. Since Obama's wants to spend $447 billion to get there, if the average estimate were to come true that works out to $1.6 million per job.
Considered in isolation, payroll tax cuts in the jobs bill look like a crass political stunt: reducing revenues by $240 billion next year and then magically disappearing right after the November elections.
There's a stimulus plan that President Obama could put forward that would attract strong bipartisan support and which would also produce great jobs at great wages while strengthening the nation's defenses.
As a junior in high school, the word “college” is ever present in my mind—and on the lips of my parents. The phrases “grades count,” “you need money; get a job,” and “student loans” have become like background music to my life. From the age of twelve, I have been tucking away my babysitting earnings in the bank in the eager hopes that it would someday become enough to pay for college.