Congressional Democrats talk up second economic stimulus package

Posted Apr 8th 2008 10:23AM by Joseph Lazzaro
Filed under: Industry, Politics, Recession

First the good news: Congressional Democrats are talking up the idea of a second fiscal stimulus package to help jump start the U.S. economy.

Now the bad news: Congressional Democrats are talking up the idea of a second fiscal stimulus package to help jump start the U.S. economy.

U.S. House Speaker Nancy Pelosi, D-California, said she would raise the prospect of a second stimulus bill when she and other Congressional leaders meet with President Bush this week, CNN reported Monday.

Anemic U.S. economy

Speaker Pelosi did not provide specifics but said March 2008's "disturbing unemployment numbers" which indicated the nation's economy lost 80,000 jobs "compels the President to work with Congress on a second stimulus package to get our economy back on track, create jobs, and speed assistance to families struggling to make ends meet," CNN said.

On Monday, the Bush Administration said it was too soon to talk about the need for a second economic stimulus package because the first one had not been fully implemented yet, Reuters reported.

Political Analysis: It sounds like the first volley in the second fiscal stimulus package debate. Congressional Republicans would like to see this issue quickly become a non-starter, due to the increased social spending a potential stimulus bill would contain. Three months ago, a second stimulus package would have seemed far-fetched. Today it's a long-shot: President Bush would probably veto the bill, and the Dems don't have the votes to override it. However, three months from now. If U.S. economic conditions continue to deteriorate, electoral pressure may be so great on incumbent Congressional Republicans that they may have to support a second package, and press President Bush to sign it.

Economic Analysis: There's more than enough work that needs to be done in the United States (infrastructure, renewable energy, school/hospital construction, among other projects) to justify a second fiscal stimulus package. Further, the package would contain the additional advantage of creating many living-wage jobs primarily in the 50 states, not overseas. That said, the factor that's most likely to determine the fate of 'fiscal stim 2' will undoubtedly be the U.S. economy itself. If the recession is shallow, no stimulus will be needed. If it isn't, the nation may have no other choice but to provide additional fiscal stimulus. Hence, a second fiscal package would be bitter-sweet: it could provide stimulus, but the economic slump required to pass it would be something no American would want to see.

Tags: Bush, Democrats, economic growth, featured, federal spending, fiscal stimulus, GDP, job creation, jobs, Pelosi, Republicans, taxes, U.S. Congress, U.S. economy

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Reader Comments (Page 1 of 1)

4-08-2008 @ 11:44AM

Mozelle said...

The USA faces a big problem.....
We have way too many places where we can SPEND our money, and not enough places where we can EARN decent money, lol.
We are slowly sinking down that sink hole while China and Europe flourish.

Too many people bought homes that should have bought Mobile Homes instead...Hence the housing crisis!

Every American wants a house...problem is they can barely afford mobile homes thanks to outsourcing!

A second stimulous package will do nothing! The problem is here to stay! The mighty dollar is worth NOTHING!
Millions of Americans are living below poverty level, millions more are living with no health insurance.

We need our factories back from China! We need our jobs back from India! We need REAL people on telephones when we call a company!

We want our old America back!
To hell with companies that manufacture their stuff overseas!

4-08-2008 @ 11:49AM

Paul said...

Would the stimulus package mean anything? The one thats coming in May is just about enough to pay off a small appliance, or ( at today's prices) to fill up your car a few times. Or, if you get lucky, it might be enough to pay part of the taxes you still owe for 2007. There's not enough for investments, or home repair projects, or putting down a deposit on a new car, etc. What do they expect us to do with this money that could possibly stimulate the economy. I'd really like to know. Any ideas?

4-08-2008 @ 2:04PM

Ray said...

Economic Stimulus Package #2? With Pelosi thinking about a second round of government handouts before the first checks have been cut may be an indication that she believes it will be too little too late. Apparently, the liberals are either aiming to take over for Robin Hood or outright Socialism. Take from those that actually work their tails off to earn what they have and give it to those that do not want to work for anything.

4-08-2008 @ 2:21PM

David Hall said...

This stimulus package will not boost the economy. The money will be used to pay creditors. There will not be any left over to boost the economy. NAFTA should be abandoned. Many non-Americans have businesses that they are not required to pay taxes (Ex. Habbib no taxes for 7 years, than cousin takes over business and again tax free for another 7 years etc, etc. ). If the government would not extend these special priviledges and collect these funds the amount would allow the government to lower our taxes we in turn can use the money to stimulate the economy. Makes sense to me. You've heard about the non-americans and the tax breaks they get or the help they receive from the USA. Non contributing individuals who collect from our Social Security, free medical and are more likely be able to attend a college because of our goverment policies. It is time we take care of our own first and stop trying to be political correct. If you are not an American citizen you should not be intitled to our advantages. Break our laws, kick-em out for good. No free room and board in our jails either. No free medical. Have you heard of the Arabic women who come to America have there babies delivered free in our hospitals then go back to their own country. Now they have given birth to an American citizen who they are raising/training to to terrorists. This is true. Ask any RN, they will confirm. How about the the average joe who has no health insurance. The medical bills incurred even when not a serious illness. Who is our government spending our money on? NOT US!!!!!!! You don't have to be overly intellegent to see what is going on and what will be happening in our future.
Our economy is hurting really bad. We have lost so many jobs people will shop wherever it is cheapest (Walmart = China). I'll stop there, though this subject can keep me going on and on.
Any replies???????????????

5-14-2008 @ 3:28PM

Don C Kandlbinder said...

Clinton did many bad things but the worst was NAFTA. Was there no forward thinking on his part or did he get money on the side from these corrupt Governments? Now was have a class referenced stimulus package that is supposed to be here, for some of us, on May 16th. I will be forced to buy food , medical and credit card(s) pay offs. (small balances) The feeling is I am not alone in my needs for the use of my stimulus package. I agree we need a second package and for it to be big enough to amount to something. What is a person supposed to do with $300.00 to boost the economy? It is small partially do to paying for social security benefits to the Mexicans and Arabs and the rest of the scum that is invading our great country. We need to get some backbone in our country and write our Congressmen and Congresswomen in loud protest to the leakage of our worthless dollars.

I hate the fact that families like mine and including mine pay for all the anchor babies born here in the USA.

I would talk about China and Taiwan and Arabia but I would get angry. please reply if you have any comments...thank you