CBO Report - "We should subsidize more mortgages"

The Congressional Budget Office reports are worth looking at as they often give clues on future economic policy and legislation. The CBO is supposed to be non-partisan. I’m not sure I understand what that means. In one way or another everything in D.C. is partisan. It has been my observation that the CBO attempts to steer the direction of policy in their reports. They push their own agenda. What motivates them is not clear to me.

CBO recommends steps that could be taken. It also estimates the consequences of any economic policy action. They forecast (guess at) both the number of new jobs that would be created and for how long those jobs might last.

The recent CBO report [4] evaluates a range of stimulus options. The following two slides are from the 2/10 and the 11/15 reports. They are similar, but there is one very important new policy option in the most recent analysis:

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