CBO Report: Democrat Plan Will Reduce Economic Output
The Congressional Budget Office again released a report that shows that the Democratic stimulus plan will actually reduce economic output.
The Republican Study Committee released this statement earlier today:
Republican Study Committee Chairman Tom Price (R-GA) issued the following statement in response to a false claim made by House Majority Leader Steny Hoyer (D-MD). Hoyer distributed a statement claiming that a new report by the nonpartisan Congressional Budget Office (CBO) affirms that the Democrats’ massive non-stimulus package will lead to economic recovery. The report actually confirms previous statements by the CBO indicating that the Democrats’ spending spree will stunt economic growth and cause long-term harm.
“Democrats want to believe that their spending spree will lead to economic recovery, but that doesn’t make it true,” said Chairman Price. “It’s not hard to figure out that these reckless tax-and-spend policies are the last thing this country needs during a recession.
“History has long shown that their agenda won’t lead to recovery. Now, nonpartisan experts have weighed in with the same assessment. It makes one wonder when the Democrats will start to listen.”
Note: The CBO, responding to Senate Finance Committee Ranking Member Charles Grassley’s request, prepared a year-by-year estimate of the economic effects of the American Recovery and Reinvestment Act. Though Majority Leader Hoyer has touted CBO’s estimate, the report clearly states: “In contrast to its positive near-term macroeconomic effects, the legislation will reduce output slightly in the long run.”