In comments to reporters in Chicago today, President-elect Barack Obama indicated that he was going to push for a stimulus package -- a really big one."Not only do I want the stimulus package to deal with the immediate crisis, I want it also to lay the groundwork for long-term sustained economic growth," Obama said in a quote from The Wall Street Journal. "With our economy in distress, we cannot hesitate and we cannot delay."
To be sure, time is of the essence. The economy is in free fall and may not improve until the end of next year. Investors have as much confidence in the stock market as Philadelphia Eagles fans have in quarterback Donovan McNabb and head coach Andy Reid. (For non-sports fans, the Eagles are the NFL's answer to Citigroup Inc. (NYSE: C), careening from one disaster to another. It's too bad government regulators can't take over the Eagles for bankrupt football play.)
The question Obama's team will face is how much size matters. Remember how the $180 billion stimulus package signed by President Bush was supposed to get the economy out of its funk? Retailers of every stripe devised clever marketing campaigns to get consumers to spend their found money from the government. And you know what? The economy was stimulated for a while.
Unfortunately, the sages in Washington who dreamed up this idea probably did not imagine that the economy would get much worse, which it did. Many people -- myself included -- socked away their checks in the bank. When the economy began to plunge further, Democrats began to agitate for a second stimulus check, so it's no surprise Obama is pushing for it as well.
I agree with Obama, for whom I volunteered in the recent election, that a stimulus bill is needed. The question is the cost. Since the first bill did not do much for the economy, will the new one need to be twice as large to get lasting impact? Three times? Ten times? The numbers get truly frightening considering we will probably need other jolts to the economy as well.
Obama is promising an economic stimulus package, the creation of 2.5 million jobs and increased infrastructure spending. I certainly hope he can pull of this hat-trick. Otherwise, paying for the stimulus will be the least of our worries.











Reader Comments (Page 1 of 1)
11-25-2008 @ 3:53PM
Iridium said...
Come one come all illegal aliens. Come work for the economic recovery act of 2009. We'll give you a job building bridges and roads. We'll pay you money and when you're done we'll give you amnesty. With the chain of immigration clause in the act you will each be able to bring your whole family into the USA. Then we will give all of you great welfare programs. Just remember to vote democratic.
Seriously, we are completely screwed. In 10 years the USA is going to look like Mexico city and we are going to need 85% tax rates just to keep up with all the promised money.
If people think we have a probelm with infrastructure now just wait five years after these government work projects are completed. The new works will be worse than the old ones.
I'm looking to move to Europe. The economy may be just as bad over there right now but they will be able to turn around much faster because they are already starting down the conservative track. The USA is just beginning its Euro Socialist movement.
11-25-2008 @ 4:15PM
Jeff said...
Iridium, please move to Europe... though I expect Europe wont be more inviting to baseless bigotry.
11-25-2008 @ 6:23PM
sherry said...
Not enough credit is being given to the high gas prices this past year and it's serious damage on our economy and society. That one factor alone has caused serious stress in both individuals and businesses. A record number of homes and jobs have been lost as a direct result. And, while we are doing the happy dance around the lower prices at the pumps OPEC is announcing cuts to manipulate the prices upward again. We must get on with becoming energy independent.We can't take another year like this past. There is a wonderful new book out about the energy crisis and what it would take for America to become energy independent. It covers every aspect of oil, what it's uses are besides gasoline, our reserves, our depletion of it. Every type of alternative energy is covered and it's potential to replace oil. He even has proposed legislative agenda's that would be necessary to implement these changes along with time frames. This book is profoundly informative and our country needs to become more informed and move forward with becoming energy independent. Green technology would not only provide clean cheap energy it would create millions of badly needed new jobs. The Book is called The Manhattan Project of 2009 Energy Independence NOW. Our politicians all need to read this book. www.themanhattanprojectof2009.com
12-06-2008 @ 11:40AM
David Cole said...
My name isn’t really important right now, but the reason I am writing you is are important to not only myself, but also for thousands of other unemployed non-custodian parents who are, were fulfilling their obligations of the Child Support enforcement orders. Due to today’s economy crisis, it has become very difficult, and nearly impossible to fulfill our obligations, because of the loss-of, and lack of new employment. A plea for a “Bailout”, or a wish for my obligations as a parent to disappear into thin air, but what I am asking for is that someone, anyone to investigate these stressful conditions of the thousands of non-custodian parents. The obligations may vary case by case but the sole purpose is to provide monitory benefits to the children, morally easy, but financially not so easy, neither or the consequences of not fulfilling the obligation, and they are as by a quote printed on the Child Support Enforcement’s “LEGAL NOTICE”:
“Garnishment of wages, Reporting of delinquency to Credit Bureaus, Interception of States and Federal Tax Refunds, Intercept of Lottery Winnings, Intercept of Unemployment Compensation, Placement of Liens or Attachments on autos, real estate, and bank accounts, Collection by IRS, Requirement to Post Bond to Assure Future Payments, denial or suspension of any license issued by a state agency, Arrest and Incarceration and interest charged and collected on arrears accrued”.
I agree that if the parent is not acting in a responsible manner and the economy were as in the 1990s, but we all know that these are a time of crisis, and we need some
Interventions in this matter. Rick, the most disturbing outcome of this issue is that the children are still getting no assistants, but the non-custodian parents are continuing being accruing a debt. I have inquired my local CSE office in Clayton County, and along with the local Congressman (David Scott) office, and there’s nothing they can offer or suggest, other than write a proposal to the President elect “Obama”, and come up with a way to combat issues that matters and evolves me, that hopefully someone will deems this issue valet, and important.
Watching you everyday (meaning I’m unemployed), I’ve heard you state “that you are for the little people”, and I tend to believe you. I want to re-iterate that I want nothing for free, and I am willing to work (not excluding physical labor) with, and in any programs that will combat my issue with the CSE consequences. Your advice, help, and means of direction greatly appreciated!