Porkulus Job-Creation? The Models Say So!

Nice takedown of CBO's "1 or 2 million jobs, or something" pronouncement by Heritage:

The CBO model started by automatically assuming that government spending increases GDP by pre-set multipliers, such as:

• Every $1 of government spending that directly purchases goods and services ultimately raises the GDP by $1.75;
• Every $1 of government spending sent to state and local governments for infrastructure ultimately raises GDP by $1.75;
• Every $1 of government spending sent to state and local governments for non-infrastructure spending ultimately raises GDP by $1.25; and
• Every $1 of government spending sent to an individual as a transfer payment ultimately raises GDP by $1.45.

Similar model-wonkery brought us Global Warming.

HT: MoonBattery