CBO on stimulus multipliers

Earlier today I wrote a post about the long-run macroeconomic implications of the stimulus, and now the CBO has gone and issued a new macroeconomic analysis (pdf). Fortunately, the results -- a nice bump up in GDP in the short run followed by a small bump down in the long run -- remain the same. (Barring any newly discovered failures in logic, I hope my point does, too.)

But the new CBO analysis has something the old one didn't: a ranking of the multipliers on each kind of government spending in the stimulus bill. Government expenditures and transfers to the states and do the best, with multipliers between 2.5 and 1. The AMT patch and tax relief for businesses do the worst, with multipliers between .5 and 0. Good 'ol AMT patch. Charts after the jump.


multipliers.jpg


multiplier addition.jpg

Presented by

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism. He was previously a fellow at The Atlantic and an editor at The Guardian. More

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism, an economics blog that was recently published in book form by Simon and Schuster. He was previously a fellow at The Atlantic and an editor at The Guardian. He is also on Twitter.

How a Psychedelic Masterpiece Is Made

A short documentary about Bruce Riley, an artist who paints abstract wonders with poured resin

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

How a Psychedelic Masterpiece Is Made

A short documentary about Bruce Riley, an artist who paints abstract wonders with poured resin

Videos

Why Is Google Making Skin?

Hidden away on Google’s campus, doctors are changing the way people think about health.

Video

How to Build a Tornado

A Canadian inventor believes his tornado machine could solve the world's energy crisis.

Video

A New York City Minute, Frozen in Time

This short film takes you on a whirling tour of the Big Apple

Video

What Happened to the Milky Way?

Light pollution has taken away our ability to see the stars. Can we save the night sky?

More in Politics

Just In