By Erik Wasson - 02/21/14 03:12 PM EST
Stimulus law’s employment effects wane: CBO
The nonpartisan Congressional Budget Office said Friday that the effects of the 2009 Obama stimulus law continued to wane in 2013.
The law, enacted five years ago this week, was estimated to boost full-time equivalent jobs in 2010 from between 900,000 to 4.7 million.
By 2013, the effects were down to between 100,000 and 500,000 full-time equivalent jobs added. Of these 76,000 full-time-equivalent jobs were directly reported to the government, and the other jobs are estimated due to macroeconomic effects.
The CBO says that the bill added $830 billion to the deficit between 2009 and 2019.
“The effects of ARRA on output peaked in the first half of 2010 and have since diminished,” the report states, using the official name of the stimulus The American Recovery and Reinvestment Act.
President Obama will call for $56 billion in new jobs stimulus spending in fiscal 2015 in his budget due out March 4. Enacting that this year is a tall order given Republican arguments that the original stimulus yielded too few jobs to justify its price tag.
As a case in point, Grover Norquist's Americans for Tax Reform was out Friday blasting stimulus spending on two District of Columbia dog parks just blocks from the White House despite a public plea from President Obama in 2009 that dog parks should not be built with the funds.