On Sunday April 4, 2010, in discussing the effects of the Democrats’ February 2009 economic stimulus package, Dr. Christina Romer, Chair of the White House Council of Economic Advisers, said “I think it has done exactly what we would say it would do.” Fortunately, a solid set of data exists to judge the accuracy of such claims. In January 2009, the Administration released a detailed forecast of the labor market effects they projected their stimulus plan would have, called “The Job Impact of the American Recovery and Reinvestment Plan” otherwise known as the Romer/Bernstein report. And each passing month provides a fresh set of actual labor market data that can be compared with those pre-stimulus projections.
As displayed in the table attached here, the latest data show the Administration’s trillion-dollar stimulus plan has failed to deliver on every major labor market promise they made. When it comes to jobs, the unemployment rate, private sector employment, construction and manufacturing employment, and full time employment, instead of “doing exactly” what they promised, the Administration’s stimulus plan has failed in every respect.