Eliminate the CBO

Newt Gingrich has it exactly right with his call to get rid of the Congressional Budget Office.

Reason #3,187: The CBO’s farcical declaration that the stimulus created jobs.

Here’s Peter Suderman with the truth:

But what neither of these reports note is that, according to the CBO’s top official, the figures in this report and previous mandatory stimulus don’t actually tell us whether or not the stimulus created jobs. That’s because, as I’ve noted so many times before, the reports rerun slightly updated versions of the same models of that were used to estimate that the stimulus would create jobs prior to the law’s passage. And lo and behold, if you create a model that predicts the law will create jobs, and then you rerun a mild variation of that model a few years later using updated figures about what money was actually spent, it still reports that the stimulus created jobs. But there’s no counting here, no real-world attempt to assess the reality of the stimulus—just a model that assumes that stimulus spending will create jobs and therefore reports that stimulus spending has in fact created jobs.

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