Insanity: doing the same thing over and over, expecting different results
Just released from the Congressional Budget Office:
"CBO's current estimate of ARRA's budgetary impact over the period 2009-2019 – a total increase of deficits of $862 billion – is about $75 billion greater than the agency originally estimated." (Source: Budget and Economic Outlook, 2010-2020, pg. 98)
Less than one year ago at President Obama’s urging Congress passed the $787 billion economic stimulus, aka: The American Recovery and Reinvestment Act of 2009, ARRA. Since that time, about three million more jobs have been lost, unemployment soared above 10%, and the end is nowhere in sight.
The Democrat’s answer: do it again!
Today, Obama and the Democrat’s called for yet another stimulus completely oblivious to the Congressional Budget Office just released analysis indicating their original estimate of the deficit impact of ARRA was underestimated (surprise!) by $75 billion. The net result is that the national debt will increase by nearly $100 billion more than the total size of the legislation. Only in government does spending $1.00 dollar to lose $1.10 somehow equal a "good investment," and provide the encouragement to do more of the same.
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Sanjai Bhagat is Professor of Finance at the University of Colorado at Boulder. He has worked previously at the U.S. Securities and Exchange Commission, Princeton University, and University of Chicago. He has an MBA from the University of Rochester and a Ph.D. from the University of Washington.