The error revolves around its forecasts for the effects of the stimulus And the error is a doozy:
For the first time, the administration admitted the economic forecasts it used to sell the stimulus were overly optimistic.
“At the time, our forecast seemed reasonable,” Vice President Joe Biden’s top economic adviser, Jared Bernstein, said Monday, explaining that the White House underestimated the scope of the recession. “Now, looking back, it was clearly too optimistic.”
By now, according to earlier White House economic models, the nation’s unemployment rate should be on the decline. The forecasts used to drum up support for the plan projected today’s unemployment would be about 8 percent. Instead, it sits at 9.4 percent, the highest in more than 25 years.
But the Administration is about to change its ways when it comes to making forecasts, and that is good news, right?
Er . . . no.
Some analysts believe the White House is still not being realistic, that Obama will be lucky if any real job creation from his recovery effort is seen by the end of the year, let alone the employment explosion he predicts.
“I think these estimates are overly optimistic,” said Arpitha Bykere, a senior analyst with RGE Monitor.
We dramatically inflated the budget deficit and the national debt for this?