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Someone Didn't Get the Memo

Reported by Ellen - February 2, 2009 -

Guest blogged by Dan

FOX Business is still misrepresenting the CBO analysis of President Obama's stimulus plan.

As Brian posted here last week:

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."

But someone didn't get the memo, since Fox Business is still at it.

In an article called, Stimulus Only Stimulating Politicians' Power, David Asman writes (quoting an article by Tom Sowell, rehashing the same points)

"The Congressional Budget Office says that only $26 billion of the stimulus money can be spent this year. And only a third of the total will be spent by the end of 2010"

And (of course) the (failed) Republican mantra.

"If the politicians want to get the quickest bang for your buck, they should cut taxes."

The article concludes with the "grabber".

"They are buying what politicians are most interested in— power…they are buying the power to tell General Motors how to make cars, banks how to bank and, before it is all over with, all sorts of other people how to do the work they specialize in, and for which members of Congress have no competence, much less expertise.”

That's right, the entire stimulus bill is not to build infrastructure, not to restore credit, not to save jobs, but to grab power by Washington Politicians (i.e. Democrats). That's because banks do such a great job in the unregulated market and GM has done such a great job making cars people want to buy.. Next Mr. Asman will be telling us that things really aren't that bad. No, wait, Neil Cavuto just did that.