WASHINGTON (AP) – White House economists say the $821 billion economic stimulus passed early in 2009 is responsible for at least 2.4 million jobs that otherwise would not have existed because of the recession.
A new report by the White House Council of Economic Advisers says the spending and tax breaks in the package are phasing out and their effect on economic growth and hiring is declining.
When passed, the Obama administration said the stimulus would halt rising unemployment at about 8 percent.
Unemployment, however, peaked at 10.1 percent in October of 2009. The White House has said it underestimated the force of the recession.
The administration no longer uses the much maligned phrase “saved or created” jobs. Instead, it says the stimulus “raised employment relative to what it otherwise would have been.”