News

White House report on economic stimulus rekindles debate

White House report on economic stimulus rekindles debate

STIMULUS DEBATE: U.S. President Barack Obama speaks during his meeting with Jordan's King Abdullah at Sunnylands in Rancho Mirage, California Feb. 14. Photo: Reuters/Kevin Lamarque

By Steve Holland

RANCHO MIRAGE, California (Reuters) – President Barack Obama marked the five-year anniversary of a controversial economic stimulus plan by releasing a report on Monday saying that government spending averted a second Great Depression, setting off a new round of partisan debate about the decision.

Obama had been in office only a month when he signed the American Recovery and Reinvestment Act of 2009, a $787 billion stimulus that Democratic majorities in both the Senate and House of Representatives passed over the objections of Republicans.

Many Americans remain doubtful about how helpful the stimulus was for an economy that still struggles to recover from a deep recession that took hold in 2008.

The White House, eager to lay to rest those doubts, issued a five-year report that said the stimulus generated an average of 1.6 million jobs a year for four years through the end of 2012. (Report: http://r.reuters.com/xat86v)

The stimulus by itself raised the level of gross domestic product by between 2 percent and 3 percent from late 2009 through mid-2011, said the report, issued by the White House Council of Economic Advisers.

Jason Furman, chairman of the council, said the Recovery Act had a “substantial positive impact on the economy, helped to avert a second Great Depression, and made targeted investments that will pay dividends long after the act has fully phased out.”

Republicans, who are attempting to oust Democrats from control of the Senate and build on their House majority in November elections, were quick to raise objections to the White House report.

House Speaker John Boehner, the top U.S. Republican, said the stimulus turned out to be a classic case of “big promises and big spending with little results.”

“Median household incomes are down. Prices on everything from gas to groceries are higher. A new normal of slow growth has set in, with most now saying the worst is yet to come,” Boehner said in a statement.

The battle over the stimulus remains relevant today as Obama seeks congressional approval of infrastructure spending intended to create jobs.

“Five years later, the stimulus is no success to celebrate. It is a tragedy to lament,” said Senate Republican leader Mitch McConnell in an opinion article for Reuters.

(Reporting by Steve Holland; Editing by Lisa Shumaker)

Recently Played

Recent Headlines

4 hours ago in Sports

Super Bowls awarded

goodell16145779127383

The NFL has awarded the 2019 through 2021 Super Bowls to three cities that have significant financial investments in new stadiums or recently upgraded an existing one.

4 hours ago in Sports

Physics, engineering professors back Tom Brady ‘Deflategate’ appeal

tombradyREUTERS

A group of 21 physics and engineering professors on Tuesday urged a U.S. federal appeals court to reconsider its 2-1 decision to reinstate the New England Patriots quarterback's four-game National Football League suspension in the "Deflategate" case.

4 hours ago in Sports

Penguins force Game 7

pensREUTERS

Pittsburgh goaltender Matthew Murray took a shutout into the third period, then held on as Tampa Bay pulled within a goal, with more shots in the third period than in the first two combined.

4 hours ago in Sports

Thunder one win from Finals after Game 4 blowout

14-overlay-9

Russell Westbrook collected 36 points, 11 assists and 11 rebounds as Oklahoma City grabbed a 3-1 lead in the Western Conference finals, thanks in large part to Westbrook's first triple-double of the postseason.

5 hours ago in Sports

Wednesday’s Sports Minute

indians16146045539203

Here's a look at some of today's big sports stories.