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Craputo!

Reported by Ellen - January 29, 2009 -

Guest Blogged by Brian

On Wednesday's (1/28/09) Your World, Neil Cavuto was so eager to defeat the economic stimulus bill that he didn't bother to get his facts right.

The following are excerpts of Cavuto's debate with Rep. Maurice Hinchey (D-NY).

Cavuto: "We might already be at the cusp of seeing big results. Why pile on?"

Hinchey: "This economy is in dire circumstances. It's the worst thing since the 1930's."

Cavuto: "I can remember double digit inflation and unemployment. Why go back to the depression to gun up a package we might not NEED?"

Hinchey: "We lost 2.6 million jobs last year. We do need it. We're experiencing one of the biggest unemployment rates ever."

Cavuto: "According to the CBO, a lot of the bang for the buck comes in outer years. We're in this pell mell rush to spend. You've risked a lot of people's money on a hunch that we can spend our way out of this morass."

Henchey: "Remember, the debt we've been experiencing is double that over the last eight years.We're putting it in a constructive way. Two thirds of the spending will be in the course of this year. The real spending is for basic infrastucture, transportation, education, and health care."

Cavuto:' The CBO says that's not right."

Hinchey: "Well you're wrong on that."

Yes, Cavuto is wrong. I went over to Media Matters where they highlight the Congressional Budget Office analysis and run down some of the myths and falsehoods that have been reported in the media. Despite many media reports that the majority of stimulus funds would not be spent in the first year and a half (which was based on a partial CBO analysis), the CBO's full cost estimate concluded that 64% of the stimulus would be spent by the end of fiscal year 2010. The CBO also reported that "implementation of H.R. 1 (the stimulus bill) would have a noticeable impact on economic growth and employment in the next few years." Further, during his January 27 testimony before the House Committee on the Budget, CBO director Douglas Elmendorf said that H.R. 1 would "provide massive fiscal stimulus that includes a combination of government spending increases and revenue reductions." Elmendorf further stated: "In CBO's judgment, H.R. 1 would provide a substantial boost to economic activity over the next several years relative to what would occur without any legislation."