The wife and I was at Lake Waccamaw, North Carolina fishing having a great day when all of a sudden I hooked a large bass. I had a fight on my hand as I worked to pull in the fish, when I had the fish near the shore it got off. You guess it, I began telling my wife that I had caught a record size bass and a bigger fish than she had. She told me to show her the record size bass. This made me think of how true an article that I had read earlier was.
Obama’s Economic Fish Stories
Such statements hurt his credibility.
On the anniversary of the stimulus bill, Mr. Obama declared, “It is largely thanks to the Recovery Act that a second Depression is no longer a possibility.” Yet his Council of Economic Advisers just estimated the stimulus bill’s effect on GDP at its trough was 1%-2%.
- The effect of the stimulus was puny.
On his recent “Recovery Tour,” Mr. Obama boasted,
“The stimulus bill prevented the unemployment rate from “getting up to . . . 15%.” But the president’s own chief economic adviser, Christina Romer, has estimated that the stimulus bill reduced peak unemployment by one percentage point—i.e., since the unemployment rate peaked at 10.1%, it prevented the unemployment rate from rising to just over 11%.
- Mr. Obama claims that the stimulus bill was several times more potent than his chief economic adviser estimates.
The president badly needs to make more realistic pronouncements.
- But at the very least, his staff needs to avoid putting these exaggerations on the teleprompter.
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