NYT Asserts Computer Simulation as Fact
In a January 19th article title “The White House Looks for Work” The New York Times Peter Baker reports:
The American Recovery and Reinvestment Act, known as the stimulus, produced or saved at least 1.9 million jobs and as many as 4.7 million last year, according to the Congressional Budget Office.
Someone reading this sentence might conclude that the CBO has analyzed actual real world data taken before, during, and after the stimulus and concluded that it saved jobs. This is completely false. The CBO job estimate numbers are based off of a computer model that does not incorporate any real world data, other than total taxpayer money spent, in any way. The Heritage Foundation’s Brian Redl explains:
CBO director Doug Elmendorf has finally conceded that they never actual examined this stimulus bills’ affect on the economy. Responding to a questioner following a recent speech, he admitted that the CBO’s jobs count was “essentially repeating the same exercise” as their initial projections. When asked if this means their jobs projections would have ignored any failures of stimulus spending to perform as CBO predicted, Mr. Elmendorf responded “that’s right.” (Exchange begins at 38:20.)
CBO never actually counted the jobs. Nor did their analysis take into account the rising unemployment rate. Or the economic figures. Or how effectively the money was spent.