Feb 11, 2009 10:56 pm US/Central
Reality Check: Obama Selling Stimulus Plan
(WCCO)
President Barack Obama is now in full control of an economy on the edge of free fall. And despite agreement between the U.S. House and Senate on a $90 million stimulus bill to create millions of jobs, Republicans say his plan for a massive injection of money won't help.
So this week, the politician-in-chief went directly to the people to hard-sell his vision.
Obama is redefining the meaning of "pork" and using job creation numbers that may be impossible to verify. However, he's not exaggerating one central fact: The economy's in trouble.
"My administration inherited a deficit of over than one trillion dollars," the president said Monday night. "We also inherited the most profound economic emergency since the Great Depression."
That's TRUE.
George W. Bush left behind a
trillion dollar deficit. America lost 598,000 jobs last month, the biggest drop in 35 years.
Although job losses are severe, they're not yet at Depression levels. The unemployment rate in the United States this month is
7.6 percent, which is still below the
10.8 percent back in 1982 recession.
However, it's not even close to the jaw-dropping unemployment numbers during the
Depression: A whopping
24.9 percent unemployment in 1933.
And despite Republican claims, Obama said his economic recovery bill is pork free.
"What it does not contain, however, is a single pet project. Not a single earmark. And it has been stripped of the projects members of both parties found most objectionable," said the president.
Well, NOT EXACTLY.
It's technically true there are no "earmarks" as they are commonly understood: Pet projects inserted anonymously.
But many of the stimulus projects do have "duck-like" qualities, according to Republican leaders -- if it walks like one, and sounds like a duck, they say it might just be a duck.
Here is what you NEED TO KNOW...
According to Republicans in Congress, only three of whom voted for the package, the disputed stimulus projects include:
- $246 million for Hollywood to purchase film.
- $650 million to pay for more digital television converter coupons.
- $1 billion for the U.S. Census.
- $75 million for programs to quit smoking.
Democrats argue the mix of all the projects will create or save jobs. According to Obama, the package will "
save or create up to 4 million jobs."
Here's the reality: It's a huge UNKNOWN.
The non-partisan
Congressional Budget Office estimates the stimulus package will create or save between 1.6 million to 3.6 million jobs. However, we only know for sure jobs that are lost, there's no way to accurately measure jobs that are saved.
That's Reality Check.
To check the resources for this Reality Check, click on the links below:
CBO: Budget Projections
Over-the-Year Change in Unemployment Rates for States
Labor Force Statistics from the Current Population Survey
Great Depression in the United States
FDR Library: The Great Depression
What GOP Leaders Deem Wasteful In Senate Stimulus Bill
State-By-State Employment Data on Impact Of Stimulus Plan
Congressional Budget Office
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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