Stimulus spending has created jobs, White House contends
The federal government’s massive stimulus package is having real effects on the economy, the White House says in findings released Wednesday.
The Council of Economic Advisors issued a quarterly report on the effects that the stimulus – officially known as the American Recovery and Reinvestment Act of 2009 – is having on the economy. According to the CEA, Recovery Act spending has given a jolt to gross domestic product growth, pushing it higher by 2.7 to 3.2 percentage points.
More pertinent, perhaps, may be the news that the act has boosted employment by an estimated 3 million positions.
"I am absolutely confident we are moving in the right direction, absolutely confident," Vice President Joe Biden said upon introducing the CEA report with the council’s chairman, Christina Romer.
Republicans – who have been unanimous in their opposition to the Democratic leadership’s deficit spending – hammered the White House for adding to the country’s debt. "The fastest-growing parts of this Democrat economy aren’t jobs – they’re the crushing burden of the national debt and the size of the federal government," Senate Minority Leader Mitch McConnell said.
House Minority Leader John Boehner was no less critical. "The American people have clearly begun to tune out Washington and what Democrats are doing here in this town," he said Wednesday. "Democrats say they’re focused on jobs, but they can’t even fulfill basic responsibilities of governing."
Unfortunately for the incumbent party, job creation appears to be slowing. In each of the past several weeks, there have been more than 450,000 new unemployment claims made. And job creation disappointed in June: Just 83,000 positions were created by private companies.
As long as the employment situation remains lackluster, Democrats may face an uphill battle in November’s elections.
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