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CBO: 1.7 Million More Americans Unemployed Next Year Than Obama Budget Admits

March 24, 2009

Washington, DC – While the non-partisan Congressional Budget Office’s analysis ofthe President’s budget impact on the deficit has created an uproar among both Republicansand some Democrats, the continued job losses should not be glossed over, accordingto Ways and Means Ranking Member Dave Camp (R-MI).

“To paraphrase: it’s the jobs, stupid,” said Camp.  “The Administration’s planto raise taxes in 2011 when unemployment is still at almost 8 percent will leaveeven more Americans out of work.  It is the wrong approach.  It is badfor the economy and devastating to families.”

According to CBO, a total of 1.7 million more Americans will be unemployed nextyear than the Obama budget claims.  CBO asserts the unemployed undercount inthe Obama budget totals 1.1 million for 2009 and 900,000 for 2011. 

“Nearly two million unemployed Americans are not a rounding error,” Camp added. “These are moms and dads struggling to provide for their families and they shouldbe told the truth of what the Obama budget really has in store for them.”

Administration Budget and CBO Analysis Unemployment Rate Forecast
 (Calendar Year Averages)  
Administration Budget
CBO Analysis
Additional Unemployed Americans under CBO Analysis
1.1 million
1.7 million
Source: Ways and Means staff estimate, using Administration Budget (Table S-8),CBO Report (p. 38),
and current BLS household survey data