In touting the effect of the stimulus package, the Obama administration had predicted that the unemployment rate would go much higher if the American Recovery and Reinvestment Act did not pass. In fact, this story notes that:
Just 10 days before taking office, Obama’s top economic advisers released a report predicting unemployment would remain at 8 percent or below through this year if an economic stimulus plan won congressional approval.
Turns out that the current unemployment rate, even with the stimulus, is at 9.4 percent. The following chart is from “Geoff,” who blogs at Innocent Bystanders. It’s data was backed up by FactCheck.org. It shows the Obama projections along with the actual unemployment data.
If you haven’t already done so after other past projection flaws, go ahead and add economic projections to the list of things that government does not do well. And to think some government leaders actually have the arrogance to believe they can run the whole economy!