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Economic Impact of the American Recovery and Reinvestment Act of 2009, Fourth Quarterly Report, July 2010

Published July 14, 2010

The White House's Council of Economic Advisers (CEA) released this fourth report on the economic stimulus plan on July 14, 2010. CEA Chair Christina Romer stated in a separate note,

"In the Fourth Quarterly Report  released this morning, we not only find that the Act has had a substantial effect on output and employment, but that it is leveraging private capital and making important investments in the future productivity of the country.

...Congress designed the Recovery Act both to begin spending out quickly and to provide crucial support to the economy over a two-year period.  It has met and is continuing to meet these goals.  The state fiscal relief, payments to seniors, and the emergency unemployment insurance benefits went out almost immediately, and started aiding the economy in the spring and summer of 2009.  The tax cuts also went into effect immediately, but it has been during tax season (the first two quarters of this year) that many Americans have seen concrete signs in the form of reduced tax payments and increased tax refunds.  In previous CEA Recovery Act reports, we have highlighted the state fiscal relief  and the tax cuts and income support provisions  of the Act, and found evidence of their effectiveness.

In today’s quarterly report, we highlight the public investment spending in the Recovery Act.  This is the project spending that not only creates jobs in the short run, but leaves us with an expanded and improved ability to create high-paying jobs in the future.  The Recovery Act includes $319 billion of public investment on everything from basic infrastructure such as roads and bridges to twenty-first century infrastructure such as a smarter electrical grid and universal broadband.  It invests in community health centers, health information technology, education, and job training to improve the health and skills of our citizens -- our human capital.  And, it makes unprecedented investments in basic scientific research to enhance innovation and so help retain our competitive edge.  All of these investments will help increase the long-run productivity of our economy and the standard of living of ordinary Americans."

 

 

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