By Dr. Eric Fruits, EconInternational
Vice President Joe Biden says “everyone guessed wrong” on the impact of the $800 billion economic stimulus. What he meant was that everyone in the Administration guessed wrong. That point is made clear by the latest Recovery Report Card. May unemployment was 1.6 percentage points higher than predicted by the Administration. If unemployment does not improvement, we may see it surpass Christina Romer’s revised projection of 9.5 percent by the end of the year. There is an old saying that gambling is one of the few things in which you get nothing for something. It looks like stimulus spending is another one.