To date, the American Recovery and Reinvestment Act (i.e. the economic stimulus package) has created or saved more than 640,000 jobs. But instead of focusing on the pertinent debate about how and whether to craft an additional job-creation package, the media and many in Congress are spending their time searching for stimulus accounting mistakes.
Because of accounting errors, the administration discounted about 60,000 jobs from its total (which would have surpassed 700,000 otherwise). Other faulty reports were initially included in the stimulus data, such as 50 jobs created by an Arkansas cemetery’s purchase of a lawnmower and jobs recorded in congressional districts that don’t exist.
As Rep. David Obey, D-Wis., said, “Credibility counts in government and stupid mistakes like this undermine it.” That is absolutely true, but it’s to be expected that a project as large as the stimulus will come with some accounting errors, particularly when based on self-reporting from employers. Those errors don’t negate the very real effect that the stimulus has had.
Because of the stimulus package, there are teachers, firefighters, police officers, and health care workers still on the job and paying taxes, who otherwise would have been out of work and collecting unemployment. Construction projects updating the country’s woefully neglected infrastructure have begun across the country.
In California alone, the stimulus has saved or created more than 100,000 jobs, including those of 62,000 teachers. “Those teachers would have been gone, if it wouldn’t have been for the federal stimulus money,” California’s Republican Gov. Arnold Schwarzenegger said.
We also tend to forget that the stimulus package is about much more than job creation. Ninety-five percent of working Americans are receiving tax cuts thanks to the stimulus, while small businesses are receiving loans, and the nation’s schools are competing for an unprecedented $4 billion in funding for classroom innovation.
The gross domestic product grew at a rate of 3.5 percent last quarter, almost entirely because of the stimulus. So instead of bickering over accounting errors, Congress needs to look at what more can be done to support the labor market.
More fiscal aid to the states is vitally needed, to prevent the further slashing of jobs and services. A direct-jobs program — particularly for young people — should be on the table.
The administration undoubtedly needs to clean up its accounting errors. But it’s up to Congress to clean up the jobs market.
Patrick Garafalo is a economics researcher/blogger for the Center for American Progress Action Fund.
