Second Stimulus: How Would It Go Down?

Slate Magazine:

Rumblings about a second stimulus package began over the weekend, when Vice President Joe Biden told George Stephanopoulos on This Week that the administration "misread how bad the economy was." Speculation spiked again when Laura Tyson, an Obama adviser, suggested in a speech in Singapore on Tuesday that the first $787 billion stimulus was "a bit too small." President Obama then refused to rule it out: "I don't take anything off the table when unemployment is close to 10 percent and a lot of Americans are hurting out there," he said.

Read the whole story: Slate Magazine

Comments

[TexasDem0]

Can we get stimulus funds to finance elections and restrict political donations to limited individual donations only?

How about using stimulus money to get all verifiable paper ballot systems?

[KoolAidDrinkersAnonymous]

Porkulus Bill #2 coming to a tax collector near you!

[SangZe]

Obama and his henchmen haven't a clue about the economy. All that's been created thus far is a huge loss of jobs, and with that, increased poverty. What a sick joke.

[Mildmannered]

The prior administration which got us into this mess was even more ignorant. And McCain admitted that economics was not his strong suit.

[Pigeon2]

How much worse could McCain have been? We have a community organizer trying to run the country...­.2012 can`t get here soon enough....­Nobama=1 term...per­iod

[Revee]

I guess you only been in the country since Jan 2009. That is why you are so down on President Obama.

You know, before you came here we had a great president named GWB. He had a top notch administration and a majority republican congress that was unlike any other you can imagine.

Those were the good old days. Wish you were here from 2000 - 2008. Nothing went wrong. Only job gains. No job losses. No wars. No corruption. No touture. You had to be there!!!

Take heart. Things will get better. I assure you. Optimism is the American way!

[boogiewoman]

The $25.00 extra a week in unemployment is going to the electric company every month.

[Ubikwity]

LOL!

[grateful4thedead]

we need an extension of unemployment benefits NOW...good­, hard working people are running out of money through no fault of their own...ther­e are NO jobs.

[420]

I just read if we are against a second stimulus what does the public want? Tax Breaks?

[ppp1604]

Thanks to Mr. Obama, I now get about 60 dollars more in my pay check each month.

Thanks to Mr. Obama, I most likely still have a job! Thanks to Mr. Obama, many Americans still have a job. Obama saved us from the Bush man.......­..

[420]

The Dems wanted more but the GOP and some bluedog dems killed it. They arer Lukcy that the first one passed. The GOP would have done zero! Oh thats right a 300 tax refund...I HAVE NO JOB! Obama can not wave his wand and create new industries over night. WHat the stimulus has done in California, is monies for training in green jobs! I am looking after completeing the training a job starting off at 25 and hour with benifits. There is a glimmer of hope. I am off to my new career.

[MadDemocrat]

How about another $40 BILLION so a company (GM) can operate for another two months and then default? Who's in charge with the Dems now. We don't seem to know our a$$es from a hole in the ground!

[TexasDem0]

Are you suggesting it would be better for the country, and the economy, if GM fails?

[mdlawyer2]

GM did fail, it's currently in bankruptcy. What the administration did, and I believe rightfully so, is control the company's descent into bankruptcy. An uncontrolled bankruptcy would have caused immense market disruptions, exacerbating unemployment in the auto sector and its related fields. Seems like the Republicans won't be happy until they trigger a complete financial Armageddon.

[econ1]

It isn't a matter of being better if GM and Chrysler fail (heck I own one of each).

It is where is the $95 billion best spent? We don't (or our children don't) have infinite money and some think the $95 billion could have done much more being put into successful companies. Think what Ford would look like with $95 billion and not having to compete with propped up GM and Chrysler.

Wise decisions rather than throwing money at every tom, dick and harry that can crawl into Washington and promise a few votes.

[sc92705]

The money is used to keep civil servants employed; who here thinks that will stimulate the economy?

[matt126]

Let them drink Kool Aid

[RTKfellow]

Tell me how it tastes, and I might.

[econ1]

And there will be clamoring for another stimulus package six months after the next one. Lobbying has become one of the few sources of new jobs.

[smchp]

What is your solution?

[econ1]

First, since less far less than half of the first stimulus bill has been spent, let's spend that.

Second, rather than spend $75 billion (and another $20B soon) on keeping GM and Chrysler on life support, put the money into companies in computers, bio-tech, medical devices, alternative energy, even new car companies. Spending on our losers by taxing our winners isn't a winning strategy.

Third, rather than support the current large banks, support a few hundred new ones.

Fourth, rather than treat real estate as the prime area for US investment, treat company investment in capital equipment that makes workers more productive.

Only a big government is worth corrupting and ours is getting bigger every day.

[polybius]

He's a rethug. He WANTS the country to fail so he can go "See?? told ya so".

miserable wretch.

[loki]

its fitting that they now but bailout news under Business. Capitalist are the only ones getting any stimulus money that can actually do anything. We , the tax payer, get a nickle here or their , what can a a grand check do for anyone ? Why do Ivy greeders get billions at a time, and we just get some chump change. Kind of shows where Obamas loyalties lay. Not towards the voters as the bailouts so far have only made the rich richer. They have dont nothing to really help the rest of us.

[matt126]

Did you actually believe all of that blah blah blah during the campaign? How many elections have you watched over the years? Government never has been and never will be your answer.

[Rickfors]

By the people for the people of the people.

We are the goverment.

[levibatgirl]

I had a feeling Krugman had it right.

[undecidedaboutPOTUS]

DrDemocrat asked "why do we need a 2nd stimulus right now"
----------------
IMO reasons why we need to look at second stimulus.


1. The first Bush recession had a “jobless recovery. It was a short 8 month recession that started in March 2001..
U/E was 4.3 % in March 2001 and peaked at 6.3% in June of 2003 and only returned to 4.4% (Oct 2006)-- 5 years after that short recession started. .

Of all the recessions since WWII, the worst decline in real GDP was -3.1% for Nov 1973-Mar. 1975

With our current major recession U/E was at 4.9%(Dec 2007), and 7.6 % in January 2009, and June at 9.5%. (also note U/E is a lagging indicator of the economy, eg. Recession “over” but U/E rates take time to fall).
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNS14000000

2. 2001 recession was a relatively “short” recession in terms of months (8) and

GDP declined by -0.5% (1/2 of 1%)

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

current major recession:
Real GDP-- decreased at an annual rate of -5.5 percent in the first quarter of 2009,
In the fourth quarter, real GDP decreased by -6.3 percent.

[-0013]

Here's the simple answer to that question: The first stimulus ain't working!!

[matt126]

If at first you don't succeed...­..

[smchp]

look another shiny object....­...go chase it.

[sueinmn]

Another round of unemployment would help many. We are losing our asses trying to hang on when we lost our employment for no fault of our own doinds. We need to somehow survive this and savings are draining dry fast! Infrastructure and schools would be great. Instead of laying off more educators and cops and firemen. Seems no matter how much money the states get, it is NOT PREVENTING job loss. New budgets kicking in and services slashed and property taxes on the increase with no jobs to cover!

[matt126]

I agree with you that job loss is a HUGE problem but a stimulus will not solve that. Policies that encourage growth rather than punishment will get the economy going again like it has always done in the past. I know that you are a hard working person and would love nothing more than to get back to work and that is what America needs. People like you back in the work force and producing. Growing government is not the answer.

[TJCole]

What we needed was spending on infrastructure much more than was in this package for $787 billion that went largely to the banks...an­d AIG...!

The Brookings Institute had done all this great work on infrastructure and where it's needed badly and how it more than pays for itself...i­n the long run really pays for itself many times over...!

They neglected the Real Economy badly, the General Prosperity is what really matters, not how rich the banks are...?

When you have banks like Goldman Sachs now a bank, puff we're a bank, and others running the White House this is what you end up with...

[sueinmn]

Infrastructure would have carried structures for another 50 yrs seeing we neglect it severely and its crumbling. It would have peovided good jobs for many. It would be a win-win as how long before more bridges fall or water mains burst? Seems a few black top overlays just do not provide enough to serve the public need.