CBO gives Obama's stimulus an F

The Congressional Budget Office issued its quarterly report yesterday to the sound of crickets from the mainstream media (find it here). Why would this report be Liberal Kryptonite? Because way back on page 8 we learn the lasting legacy of Obama's and the Democrats' ultimate spending spree in the name of recovery (bolds are mine): ARRA's Long-Run Effects In contrast to its positive near-term macroeconomic effects, ARRA will reduce output slightly in the long run, CBO estimates-by between zero and 0.2 percent after 2016... ARRA's long-run impact on the economy will stem primarily from the resulting increase in government debt. To the extent that people hold their wealth in government securities rather than in a form that can be used to finance private investment, the increased debt tends to reduce the stock of productive private capital. In the long run, each dollar of additional debt crowds out about a third of a dollar's worth of private domestic capital, CBO estimates... Over...(Read Full Post)