The President’s Council of Economic Advisors (the “CEA”) released its latest quarterly report on July 14, 2010, regarding the impact of the American Recovery and Reinvestment Act of 2009 (“ARRA”). The full text of the report can be found here.
The following is a list of some of the highlights noted in the executive summary of the report:
- The magnitude of ARRA fiscal stimulus increased from $80 billion in the fourth quarter of 2009 to $108 billion in first quarter of 2010 to $116 billion in second quarter of 2010.
- Government investment in infrastructure, clean energy, and communications technology increased by approximately 50% between the first and second quarters of 2010.
- Following implementation of ARRA, real gross domestic product (“GDP”) began to grow steadily beginning the third quarter of 2009 and private payroll employment increased by nearly 600,000 since its low point in December 2009.
- The CEA estimates that ARRA has raised GDP as of the second quarter of 2010 (relative to what it otherwise would have been) by 2.7% to 3.2%
- The CEA estimates that ARRA has raised employment (relative to what it otherwise would have been) by 2.5 to 3.6 million.
- Approximately two-thirds of the $319 billion available for public investment available under ARRA have been obligated and more than one-quarter have been outlayed.
- The CEA estimates that public investment under ARRA has saved or created more than 800,000 jobs as of the second quarter of 2010, a 30% increase over the first quarter.
- Nearly 14,000 projects have been awarded under the transportation infrastructure provisions of ARRA in areas ranging from highway improvements to new airport runways and public transit.
- The CEA estimates that approximately $100 billion of ARRA funds have leverage provisions, which will enable these funds to support more than $380 billion of total investment spending, the majority of which is expected to come from the private sector.