Estimated Impact of the Stimulus Package on Employment and Economic Output
"nder the American Recovery and Reinvestment Act of 2009 (ARRA), also known as the economic stimulus package, certain recipients of funds appropriated in ARRA (most grant and loan recipients, contractors, and subcontractors) are required to report the number of jobs funded through ARRA after the end of each calendar quarter. The law also requires CBO to comment on those reported numbers. A CBO report released this afternoon satisfies that requirement and under the law is required to be submitted no later than today. The report provides CBO’s estimates of ARRA’s overall impact on employment and economic output in the second quarter of calendar year 2010. The most recent estimates for the second quarter and beyond vary only slightly from those in our quarterly ARRA report released in May.

When ARRA was being considered, CBO and the staff of the Joint Committee on Taxation estimated that it would increase budget deficits by $787 billion between fiscal years 2009 and 2019. CBO now estimates that the total impact over the 2009–2019 period will amount to $814 billion. Close to half of that impact is estimated to occur in fiscal year 2010, and about 70 percent of ARRA’s budgetary impact will have been realized by the close of that fiscal year..."

Did the 2008 Tax Rebates Stimulate Short-Term Growth?
"In preparing its economic forecast published in September 2008, the Congressional Budget Office (CBO) estimated that 40 percent of the tax rebates issued in the
spring and summer under the Economic Stimulus Act of 2008 (Public Law 110-185) would be spent within six months––raising the growth of consumption in the second and third quarters of 2008 by 2.3 percent and 0.2 percent, respectively, and reducing it by 1.0 percent in the fourth quarter, when the distribution of the rebates was expected to end.1 However, analysts disagree about the economic impact of tax rebates. This brief examines the issue in light of the evidence currently available..."

FTC Warns Consumers About Economic Stimulus Scams
"he FTC is warning consumers that they could get stung by an economic stimulus scam. The scams come in different forms.

Right now, on the Web and in e-mail, scammers are telling consumers they can help them qualify for a payment from President Obama's economic stimulus package. All they have to do is provide a little information or a small payment.

E-mail messages may ask for bank account information so that the operators can deposit consumers' share of the stimulus directly into their bank account. Instead, the scammers drain consumers' accounts of money and disappear. Or bogus e-mail may appear to be from government agencies and ask for information to "verify" that you qualify for a payment. The scammers use that information to commit identity theft. Some e-mail scams don't ask for information, but provide links to find out how to qualify for funds. By clicking on the links, consumers have downloaded malicious software or spyware that can be used to make them a victim of identity theft..."

Economic effect of proposed stimulus legislation as passed by the House and Senate.
" The macroeconomic impacts of any economic stimulus program are very uncertain. Economic theories differ in their predictions about the effectiveness of stimulus. Furthermore, large fiscal stimulus is rarely attempted, so it is difficult to distinguish among alternative estimates of how large the macroeconomic effects would be. For those reasons, some economists remain skeptical that there would be any significant effects, while others expect very large ones.

CBO has developed a range of estimates of the effects of stimulus legislation on gross domestic product (GDP) and employment that encompasses a majority of economists’ views. By CBO’s estimation, in the short run the stimulus legislation would raise GDP and increase employment by adding to aggregate demand and thereby boosting the utilization of labor and capital that would otherwise be unused because the economy is in recession. Most of the budgetary effects of the legislation would occur over the next few years, and as those effects diminished the short-run impact on the economy would fade."

Economic Stimulus: Issues and Policies
"...Fiscal policy temporarily stimulates the economy through an increase in spending which also, if not offset by increases in revenue, increases the budget deficit. There is a consensus that certain proposals, ones that result in more spending, can be implemented quickly, and leave no long-term effect on the budget deficit, would increase the benefits and reduce the costs of fiscal stimulus relative to other proposals. Economists generally agree that spending proposals are somewhat
more stimulative than tax cuts since part of a tax cut may be saved by the recipients. The most important determinant of the effect on the economy is the stimulus’ size. The recent stimulus package increased the deficit by about 1% of GDP."

Economic Slowdown: Issues and Policies
"Recent policies have sought to contain damages spilling over from housing and
financial markets to the broader economy. These policies include monetary policy,
which is the responsibility of the Federal Reserve, and fiscal policy. Legislators and the President adopted an economic stimulus package (P.L. 110-185) on February
13. Another stimulus package is under consideration. Over the past few months, the
government has also intervened in specific financial markets, including acquisition
of troubled firms. Administration officials. with bipartisan support of Congressional
leaders, proposed a massive intervention in financial markets. This intervention
goes beyond normal monetary policy and involves Congressional consideration. The
plan, H.R. 3997, proposes authority to purchase $700 billion in assets..."