Stimulus propped up gdp by up to 4.2% in 1st Quarter!!!!

Discussion in 'Economics' started by S2007S, May 25, 2010.

  1. S2007S


    So as we can all take notice that the stimulus package propped up the gdp by up to 4.2%, amazing what trillions of worthless dollars can do to an economy, to bad the economy didn't earn this beautiful 4.2% gdp on its own, now that would be a true economy. With all this stimulus ending wonder what they will come up with next to prop up this economy.

    Stimulus Raised GDP by Up to 4.2% in First Quarter: CBO
    Published: Tuesday, 25 May 2010 | 5:51 PM ET
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    By: Reuters

    The massive U.S. stimulus package put up to 3.4 million people to work and boosted GDP by up to 4.6 percent in the first three months of 2010, the nonpartisan Congressional Budget Office said on Tuesday.

    CBO's latest estimate does not differ significantly from its previous assessments of the impact of the $893 billion package, passed in 2009.

    But it is sure to cheer congressional Democrats as they struggle to advance a smaller package of safety-net spending, tax cuts and other measures to boost the sluggish economy and bring down the 9.9 percent unemployment rate.

    The American Reinvestment and Recovery Act, as the stimulus package is formally known, lowered the unemployment rate by between 0.8 percentage point and 1.9 percentage points in the first quarter of 2010, CBO estimated.

    That translates to somewhere between 1.4 million and 3.4 million jobs, CBO said.

    The Recovery Act boosted GDP by between 1.7 percent and 4.6 percent, CBO said. Its impact will peak later this year before tailing off in 2011 and 2012, CBO said.