Be the First on Your Block to Know This: The Business Case for Federal Stimulus Spending

It is within the power of the US Federal Government to increase the growth of the nation's economy through the use of selected governmental spending programs.  This was the goal of the American Recovery and Reinvestment Act (ARRA) of 2009, and there is ample evidence that this was achieved.  The evidence is available for all to see by visiting the web site of the Congressional Budget Office at http://www.cbo.gov/ .

The Congressional Budget Office (CBO) has a well-earned and much-deserved reputation for accuracy and bipartisanship.  During the period leading up to the agreement to increase the nation's "debt ceiling" that was enacted early last week, the CBO analyzed the competing budget proposals and identified errors as appropriate.  Both the Republican and Democratic sides of Congress, and the Obama Administration, accepted the CBO's critiques and reissued their proposals with the errors corrected.

Since November 2009 the CBO has issued a series of reports on the results of the stimulus program known as the ARRA.  Each report is entitled "Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output . . ."  The most recent report was issued in May of this year.  As indicated by the title, the reports provide the CBO's analysis of the effects on GDP and employment due to the stimulus spending of the ARRA.  The figures provided in the reports are all positive.