Brendan Buck (202) 226-4774

CBO: 1.7 Million More Americans Unemployed Next Year Than Obama Budget Admits

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Washington, March 24, 2009 | comments

Washington, DC – While the non-partisan Congressional Budget Office’s analysis of the President’s budget impact on the deficit has created an uproar among both Republicans and some Democrats, the continued job losses should not be glossed over, according to Ways and Means Ranking Member Dave Camp (R-MI).

“To paraphrase: it’s the jobs, stupid,” said Camp.  “The Administration’s plan to raise taxes in 2011 when unemployment is still at almost 8 percent will leave even more Americans out of work.  It is the wrong approach.  It is bad for the economy and devastating to families.”

According to CBO, a total of 1.7 million more Americans will be unemployed next year than the Obama budget claims.  CBO asserts the unemployed undercount in the Obama budget totals 1.1 million for 2009 and 900,000 for 2011. 

“Nearly two million unemployed Americans are not a rounding error,” Camp added.  “These are moms and dads struggling to provide for their families and they should be told the truth of what the Obama budget really has in store for them.”

Administration Budget and CBO Analysis Unemployment Rate Forecast
 (Calendar Year Averages)  
 
 2009
2010
2011
Administration Budget
8.1%
7.9%
7.1%
CBO Analysis
8.8%
9.0%
7.7%
Additional Unemployed Americans under CBO Analysis
1.1 million
1.7 million
900,000
Source: Ways and Means staff estimate, using Administration Budget (Table S-8), CBO Report (p. 38),
and current BLS household survey data
http://www.bls.gov/news.release/empsit.nr0.htm
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