According to new estimates by Bloomberg, CFC could add 0.5% to GDP numbers on a $3 Billion dollar Federal Government investment. So leave out all the other positives about the bill, less oil imports, less carbon, better gas mileage and making fuel efficiency cool again...
This is poised to be the best stimulus ever.
http://www.bea.gov/...
Update:
Another successful diary scrolls off the page with no screaming, yelling or doughnuts...thanks again...
The average stimulus dollar spent was planned to deliver 1.18 in stimulus (the multiplier effect). Of course some are more and some are less. At the high end the multiplier effect is somewhere over 2.0 that is for every Billion spent there is $2 Billion added to GDP...
Well here comes CFC...which is now for a $3 Billion federal government investmnt now expected to yeild a 0.5% increase in GDP. So what does that mean. Well Current GDP is 14.15 Trillion dollars as of 2nd quarter (rounded up from 14.149 Trillion).
0.5% increase would mean a $70.75 Billion increase in GDP and on a $3 Billion federal investment that is a multiplier effect of over 23 (rounded down from 23.58)...not 2.3...Twenty-Three!!!!
To put this into perspective if $100 Billion of the $787 Billion stimulus was this stimulative we would have added $2.3 Trillion to GDP whic would have resulted in 16% growth in GDP!!!!
Unbelievable...and thus is the reason why the Senate Republicans could not stop the extension of the program...the only bad thing they can say about it...is hey the federal government is picking winners and losers...the winners here are clearly the American people...This small program was indeed another example of the brilliant policies of the Obama administraton!!!