Chuck Grassley: “one of the arguments we have heard in support of the proposed $1 trillion stimulus bill is that our economy is…”

“one of the arguments we have heard in support of the proposed $1 trillion stimulus bill is that our economy is performing below its potential. It is argued we have a gap between what we could produce and what we are producing. There is no question our economy is producing less than it could. It is quite obvious we are in a recession. But that does not mean a massive, temporary increase in Government spending can fill the gap and thus restore our economy to its full potential. In fact, the opposite is true. The proposed $1 trillion increase in Government spending will impede recovery and reduce future growth. The Congressional Budget Office--which I want to remind people listening, as well as my colleagues who tend to forget it--is a nonpartisan group of people who are professionals in making judgments about Government programs and what they cost. The Congressional Budget Office reported last week that the stimulus bill will create temporary jobs that cost as much as $300,000 apiece, and then it will reduce jobs permanently compared to no stimulus bill at all.”