CBO Scores the Stimulus Bill

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CBO SCORES THE STIMULUS BILL….So what does the Congressional Budget Office really think about the stimulus bill currently wending its way through Congress? Answer:

CBO anticipates that implementation of H.R. 1 would have a noticeable impact on economic growth and employment in the next few years.

Specifically, they estimate that in the spending portion of the bill, $477 billion out of $604 billion would be disbursed either this fiscal year or in the next two fiscal years. That’s 79% of the total.

I guess opinions can vary on this, but that strikes me as pretty good. What’s more, most of the spending that comes in FY2012 or later is either for projects that simply take more than two years to complete (highways, school repairs) or infrastructure improvements that have long-term paybacks (renewable energy programs). There are a few other items in the out years that are more arguable, but they add up to a pretty small portion of the bill.

Overall, then, it looks like the spending part of the bill is maybe 90% clean as short-term stimulus. And on the supply side, nearly 100% of the tax cuts are allocated during the next 18 months. Given the realities of the appropriations process, I’m not sure the White House could have done much better than this. Looks like pretty good work from the economics team.

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We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

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