Feb 26, 2010

Fuzzy math from the Congressional Budget Office

An article at the link below claims the CBO jobs report was pre-ordained to show the stimulus succeeded.

The article says that the Congressional Budget Office (CBO) has produced a new report estimating that the $862 billion stimulus has thus far saved or created 1.5 million jobs.

However the CBO’s calculations are not based on actually observing the economy’s recent performance. Rather, they used an economic model that was programmed to assume that stimulus spending automatically creates jobs — thus guaranteeing their result.

This study, designed to ‘prove’ a pre-determined outcome, is a reminder of an old adage I found to be true during my years as an auditor -- “figures don’t lie but liars figure.”