The nonpartisan Congressional Budget Office reports that the American Recovery and Reinvestment Act of 2009, better known as the stimulus bill, has created millions of jobs and in fact has had an even bigger economic impact than expected.
“CBO estimates that in the first quarter of calendar year 2010, ARRA’s policies:
- Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.2 percent,
- Lowered the unemployment rate by between 0.7 percentage points and 1.5 percentage points.
- – Increased the number of people employed by between 1.2 million and 2.8 million, and
– Increased the number of full-time-equivalent jobs by 1.8 million to 4.1 million compared with what those amounts would have been otherwise.
In March 2009, the CBO predicted that as a result of the stimulus, employment today might be as much as 2.3 million than it would have been without the law. The updated report puts that number as high as 2.8 million.
In other words, the stimulus that according to some hasn’t created one single job has been and continues to be an important success. Times are still hard, but without ARRA, millions of Americans working today to support their families would instead be on the unemployment line, collecting UI benefits.