Stimulus Goal Downsized

By Kate Barrett

Mar 10, 2009 12:21pm

ABC News’ Jonathan Karl Reports: A group of economists including Mark Zandi of Moody’s who has advised Democrats and Republicans just presented House Democrats with a report that says the recently enacted $787 billion stimulus package will fall far short of the goal of saving or creating 3.5 million to 4 million jobs.

In the group’s briefing, two of the four economists said only 2.5 million jobs will be saved or created in the next two years. Zandi told House Democrats that a second stimulus is needed as well as more money for banking stabilization and housing. Speaker of the House Nancy Pelosi did not disagree with the assessment. She says it is going to take time to recover from the "Bush economy."

In addition to setting expectations that more money will be needed, House Democrats championed all the work they have done with the president on the economy (stimulus, housing, banks) in his first 50 days.

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