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The Stimulus and Jobs: Can the GOP Read?

2 years ago
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Do Republicans read?

I ask that seriously. The past few days, with the president focused on his White House jobs summit, GOPers have targeted their anti-Obama crusade on the president's economic record. And their number-one talking point has been this: Obama's stimulus stinks. Some examples:

-- In a speech at the Heritage Foundation, House Minority Whip Eric Cantor decried the "failure" of Obama's $787 billion stimulus package.

-- Talk show agitator Glenn Beck huffed that "jobs are not being saved or created."

-- Sarah Palin tweeted, "Baffling/nonsensical:Obama's talk of yet another debt-ridden 'stimulus' pkg.Fight this 1, America, bc after last 1 unemployment rose,debt grew." (Palin apparently doesn't put spaces between sentences to fit in more characters.)

-- The Republican Party zapped out a press release proclaiming, "Obama's First Stimulus Failed To Prevent Double-Digit Unemployment, Succeeded in Promoting Waste Fraud and Abuse."

There are policy debates to be had regarding Obama's stimulus package. But this particular GOP attack is utterly disingenuous. It's a lie.

As Republicans have been claiming the stimulus has done nothing to protect or preserve jobs, the Congressional Budget Office, a nonpartisan research outfit, this week released a report on the impact of the stimulus (known officially as the American Recovery and Reinvestment Act, or ARRA) that says exactly the opposite. This is not spin. Here's the relevant portion:

CBO estimates that in the third quarter of calendar year 2009, an additional 600,000 to 1.6 million people were employed in the United States, and real (inflation-adjusted) gross domestic product (GDP) was 1.2 percent to 3.2 percent higher than would have been the case in the absence of ARRA. Those ranges are intended to encompass most economists' views and to reflect the uncertainty involved in such estimates.

What do Cantor, Palin, Beck and GOP chair Michael Steele not understand in those two sentences? The CBO is widely regarded as an authoritative source for such data. (Washington nearly comes to a standstill when a CBO cost-analysis of a health care bill is about to be unveiled.) In this instance, the CBO has issued a conclusion that is about as definitive as these things get: GDP is bigger and more people are working, thanks to the stimulus.

It makes sense. The government spends nearly a trillion dollars, and the money has to go somewhere. Republicans and conservatives can complain this is not the best use of taxpayer money or that the stimulus was not structured in the most effective fashion. But to say this influx of money has not helped expand the economy and protect or create jobs is ridiculous. This sort of reality-denying nonsense further undermines their lower-than-the-Democrats' credibility.

Republican supporters ought to worry about the GOP leaders' impulse to reject and denounce everything that comes out of the White House (with the exception of Obama's decision to expand the Afghanistan war). This does make it seem like they're living in an alternative (and bizarro) universe. (Cue Fox News.)

And they look juvenile. That Republican press release calls Obama's stimulus a failure in part because it's led to supposedly wasteful and fraudulent government spending. Yet it cites only three examples: $3 million for a turtle crossing in northern Florida; $6 million to an international construction company that's under criminal investigation; and $16.1 million to save a San Francisco Bay area that is home to the endangered salt marsh harvest mouse. Whether or not these projects and the recipients of these funds are worthy, this all adds up to .003 percent of the total tab.

Can we be adults here? There are no programs -- in or out of government -- that don't include some waste. In fact, all human endeavors contain inefficiencies and errors. If the stimulus package were 99 percent cost-effective, that would still leave nearly $8 billion in waste. Picking out a couple of questionable projects is gotcha antics, not serious political debate.

At this point, Republicans have nothing to fear but Republicans themselves. If unemployment stays at or near 10 percent for the coming year, the GOP might well be able to ride the ensuing anti-incumbent anger to victory in the 2010 congressional elections, perhaps even draw close to retaking the House. But the more they act like, well, jerks, the more they will undercut their own chances. It's true that politicians often use lies to great advantage. But this batch of Republicans is mugging the truth in the most inelegant manner, as it offers up nothing more than Bush-Cheney retreads: cut taxes, reduce regulations. Voters may be in the mood for a change next fall. But will they want to hand over control to pols who can't read a CBO report or be bothered to come up with more thoughtful spin?

You can follow David Corn's postings and media appearances via Twitter.

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