The Hill reports:
The federal stimulus act has performed “exactly” as the Obama administration expected it to, Council of Economic Advisers Chairwoman Christina Romer said Sunday. . .
“I think it has done exactly what we would say it would do,” she said on NBC’s “Meet the Press.”
Really? Let’s take a look at Romer’s own prediction that she made on behalf of the incoming administration in January 2009 as part of the effort to sell the stimulus boondoggle:
This handy chart (from Innocent Bystanders) overlays the Obama administration’s prediction (dark blue) with actual numbers (red) and the administration’s current prediction (green). The administration’s worst-case scenario, if their stimulus were not enacted, is shown in light blue. Romer herself (with Jared Bernstein) prepared everything in blue, and the green is based on her House testimony (with Geithner and Orszag) last month.
Clearly, the stimulus did not perform as we were told. Unemployment immediately soared well above the no-stimulus curve — to say nothing of the curve we were promised — and shows no sign of getting back down to either curve in the near future. That light blue curve is looking pretty good now.
So if Romer says that the stimulus performed exactly as the administration expected, we have to ask: Is she lying now, or was she lying then? It’s one or the other.