“Analysis by both the Council of Economic Advisers and a wide range of private and public-sector forecasters indicates that the American Recovery and Reinvestment Act of 2009 contributed between 3 and 4 percentage points to real GDP growth in the third quarter. This suggests that in the absence of the Recovery Act, real GDP would have risen little, if at all, this past quarter.”
– Christina Romer, Chair, Council of Economic Advisors, 10/29/09
The Recovery Accountability and Transparency Board is expected to release reports later today that show the Recovery Act has saved or created around 650,000 jobs, which puts our economy on track to reach President Obama's goal of 3.5 million jobs by the end of 2010. Stayed tuned for an official announcement today.
• In a clear indication that the economy is recovering, the Commerce Department announced that the Gross Domestic Product (GDP) rose at a 3.5 percent annual rate in the third quarter, the best quarter for growth in two years. “GDP is the broadest measure of economic activity… Much of [its 3rd quarter] growth was attributable to government policy, including the stimulus bill, a range of government supports for housing, and the Cash for Clunkers program that boosted sales of automobiles.” [Washington Post, 10/29/09
• A review of reports from 33 states shows that Recovery Act funding was already used to create or save more than 388,000 jobs, “buttressing the Obama administration's claim that the $787 billion plan has had a significant impact on the economy.” [USA Today, 10/28/09
• According to a USA Today survey, Recovery Act funds helped States avert widespread program cuts and worker layoffs. “Federal stimulus money has protected states from making big cuts in the number of government workers, in aid to schools or in spending on Medicaid, the health care program for the poor.” [USA Today, 10/29/09
• The Obama Administration announced $3.4 billion in spending projects to modernize America’s electric power system. “[The ‘smart grid’] projects would create tens of thousands of jobs in the near term and lay the groundwork for changing how Americans use and pay for energy.” [Los Angeles Times, 10/27/09