Congressional Budget Office: The Stimulus Worked
The director of the nonpartisan (and widely respected) Congressional Budget Office, Douglas Elmendorf gave testimony in response to questions from Rep. Tim Huelskamp (R-Kan.), a member of the tea party caucus. Huelskamp asserted that the stimulus was a failure because it did not keep the jobless rate below 8 percent, as the Obama administration predicted.
“Where did Washington mess up?” Huelskamp demanded. “Because you’re saying most economists think it should’ve worked. It didn’t.”
Most economists not only think it should have worked; they think it did work, Elmendorf replied. 80 percent of economic experts agreed that, because of the stimulus, the U.S. unemployment rate was lower at the end of 2010 than it would have been otherwise. Only 4% disagree. The CBO’s own analysis found that the package added as many as 3.3 million jobs to the economy during the second quarter of 2010, and may have prevented the nation from lapsing back into recession.