- Texas man arrested for powder-letter hoax
- Islamic State opens ‘marriage bureau’ for single jihadists
- Drone almost blocks California firefighting planes
- Tornado rips off roofs, downs trees near Boston
- GOP: Environmental rules keeping agents from accessing border
- John Kerry: Millions displaced by religious fighting in 2013
- Federal appeals court rules against Virginia’s gay marriage ban
- White House says Russia ‘losing’ war in Ukraine
- Hamas turns to North Korea for weapons deal, Iran for money
- Syrian casualties surge as jihadis consolidate
GREENSTEIN: The stimulus is actually working
Question of the Day
Finally, some critics assert that the stimulus package is making the nation’s daunting long-term budget problems much worse.
Not quite. The stimulus will add only about 3 percent to the total budget shortfall through 2050. That’s because the tax cuts and new spending in it are temporary, while the nation’s long-term budget problems stem mainly from ongoing factors, especially rising health care costs and the built-in mismatch between projected spending and revenues.
To be sure, the stimulus package is not flawless. Goldman Sachs argued that a bigger package — one that totaled $1.2 trillion — was needed to offset the drop in private-sector spending.
Nor will every item in the enacted package provide effective stimulus. Congress should have enacted the higher level of state fiscal relief that the administration recommended — so that states’ overall budget cuts and tax increases could have been smaller and states could have avoided some actions altogether — in lieu of several items the final package contained.
But there’s little doubt that the economy is better off because of the stimulus. Without it, the recession would have been longer and deeper, and the number of unemployed Americans would have been even greater than it is.
• Robert Greenstein is executive director of the Center on Budget and Policy Priorities.
TWT Video Picks
By David Keene
Allowing states to innovate could reduce dependency on bureaucracy
- D.C. seeks to stay judge's order allowing gun owners to carry in public
- Hillary Clinton: Forget Obama, George W. Bush made her 'proud to be an American'
- Illegal immigrants demand representation in White House meetings
- Iraqi Christians rally at White House: 'Obama, Obama, where are you?'
- Tennessee Gov. Haslam slams White House for secret dump of illegals in his state
- White House defends Kerry failure to broker Middle East cease-fire
- NAPOLITANO: What if our democracy is a fraud?
- Romney would win popular vote in rematch against Obama: CNN poll - Washington Times#.U9ZSgi7-CXU.twi
- Russia violating 1987 nuclear missile treaty
- RAHN: When money mischief goes global
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq