Thursday, February 24, 2011

Comngressional Budget Office Deploys Keynesian Voodoo

Using Keynesian logic, the director of the CBO tells us that:
Under the American Recovery and Reinvestment Act of 2009 [a/k/a the Stimulus Package]...Lowered the unemployment rate by between 0.7 percentage points and 1.9 percentage points...Increased the number of people employed by between 1.3 million and 3.5 million, and
How the CBO can say the stimulus package lowered the unemployment rate, without taking into consideration the jobs lost in the private sector as a result of stimulus money that was diverted away from the private sector via government taxation and borrowing, is truly baffling. I suspect it can only be done after heavy doses of watching the President's motorcade fly through D.C., while the police hold back the unwashed masses. Who wouldn't want to get a chance at getting close to public transportation like that, considering the alternative?