White House releases data on stimulus jobs; 1 million jobs created or saved

October 30, 12:49 PMLiberal ExaminerRaymond Gellner

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  Construction workers begin construction along CA interstate 215.
  (Sept. 14, 2009)    (AP Photo/Nick Ut, file)

A report released by the White House Friday morning stated that thus far the stimulus package has created or saved approximately 650,000 jobs. In addition, there are more job numbers to be released Friday afternoon which are expected to raise the number up to approximately 1 million jobs created or saved.

The $787 billion recovery package consists of $499 billion in spending and $288 billion in tax relief. A total of $339 billion has thus far been allocated; $150 billion in spending and $189 billion in tax relief.

In an interview with CNN on Friday, Bernstein stated, “We're solidly on track to create or save 3.5 million jobs by the time this program winds down. There's a lot more ammunition in that Recovery Act. The stimulus package is absolutely working, both in GDP terms and in terms of saving or creating jobs.”

All of the updated numbers will be posted on website Recovery.gov Friday afternoon. Recovery.gov is the website created by The Recovery Accountability and Transparency Board for the purpose of supplying the public with data on stimulus package expenditures.

The Recovery Accountability and Transparency Board is the independent group which oversees the tracking of all of the data in regard to spending from The American Recover and Reinvestment Act, aka the stimulus package. Their mission statement according to Recovery.gov is “To promote accountability by coordinating and conducting oversight of Recovery funds to prevent fraud, waste, and abuse and to foster transparency on Recovery spending by providing the public with accurate, user-friendly information.”

Democrats, including the White House, argue that these numbers, in addition to the economic 3.5% growth to the Gross Domestic Product (GDP) in the third quarter show that the stimulus package is having its desired impact and has kept the nation from falling into a depression.

However, Republicans argue that the accuracy of the numbers cannot be easily verified. Furthermore, they point to the unemployment rate, which is at its highest level since the Reagan administration, as an indication that these numbers may not be valid. In addition, they make a case that the growth in the GDP is actually not true economic growth, but artificial economic growth due to stimulus spending.

The website Recovery.gov has the following summary on The American Recover and Reinvestment Act:

Three Main Goals:
On Feb. 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009. Four days later, the President signed the legislation into law. The Recovery Act’s main goals are to:

• Create and save jobs 
• Spur economic activity and invest in long-term economic growth 
• Foster unprecedented levels of accountability and transparency in government spending

The $787 billion economic Recovery plan included provisions for immediate federal tax cuts and incentives, an expansion of unemployment benefits and other social entitlement programs. In addition, 28 federal agencies received Recovery funds to finance contracts, grants, and loans around the country.

Longer Term Goals:
The Recovery Act’s longer-term economic investment goals include: 

• Initiating a process to computerize health records to reduce medical errors and save on health-care costs 
• Investing in the domestic renewable energy industry
• Weatherizing 75 percent of federal buildings and more than one million homes
• Increasing college affordability for seven million students by funding a shortfall in Pell Grants, raising the maximum grant level by $500, and providing a higher education tax cut to nearly four million students
• Cutting taxes for 129 million working households by providing an $800 “Making Work Pay” tax credit
• Expanding the Child Tax Credit

The Recovery Act was intended to provide a short-term jumpstart to the economy, but many of the projects funded by Recovery money, especially infrastructure improvements, are expected to benefit economic growth for many years.
 

Copyright © 2009 by Raymond Gellner