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Posted on 11/23/2008 10:42:40 PM PST by Ernest_at_the_Beach
Facing an increasingly ominous economic outlook, President-elect Barack Obama and other Democrats are rapidly ratcheting up plans for a massive fiscal stimulus program that could total as much as $700 billion over the next two years.
That amount, more than the nation has spent over the past six years in Iraq, would rival the sum Congress committed last month to rescuing the country's financial system. It would also be one of the biggest public spending programs aimed at jolting the economy since President Franklin D. Roosevelt's New Deal.
Hints of a hefty new spending program began emerging last week. New Jersey Gov. Jon Corzine (D), an Obama adviser, and Harvard economist Lawrence H. Summers, whom Obama has chosen to lead his White House economic team, both raised the possibility of $700 billion in new spending. Yesterday, Obama adviser and former Clinton administration Labor secretary Robert Reich and Sen. Charles E. Schumer (D-N.Y.) also called for spending in the range of $500 billion to $700 billion.
Transition officials would not confirm that they are considering spending of that magnitude, but they made clear that economic conditions are dire, and suggested that Obama might be forced to delay his pledge to repeal President Bush's tax cuts for the wealthy.
(Excerpt) Read more at washingtonpost.com ...
fyi
Giving Jimmy Carter a run for his money.
Still, I am scared, because in California, the democrats cemented power by using spending to make a powerful ruling majority of interest groups dependent on government even though it is slowly destroying the state.
If Obama is able to accomplish this for America, our country is done for.
Why not just go for $50 trillion? That would really stimulate things.
What’s inflation?
Everyone do the following:
1) Take $100 from your left pocket.
2) Burn $40.
3) Put $60 in your right pocket.
You’ve been Stimulated.
Cut capital gains taxes to zero, slash corporate income taxes, cut personal income taxes across the board, drastically cut entitlement spending, and take a chain saw to the federal budget.
Voila! Businesses recover, stock market soars, consumers hit the malls again, taxpayers get much needed relief, and the economy emerges from recession.
Of course, it’s a fantasy, and nothing more.
Don’t worry: they’ll just raise taxes to make up for the loss. :)
Sheesh what about President Bush’s 700 billion? We still have 350 billion left from what I heard. Can’t we at least spend this first before adding more?
Is it true that deflation is worse? They were saying this on TV but to me deflation is the prices going down on things. I would imagine that would help average americans pretty good right now.
Actually Obama stated he will not raise taxes for now...we’ll see...lol.
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Ha!
Two Trillion in Obama's first 100 Dayze
deflation can be just as bad as inflation. We need a stable $.
I’m not sure why the the $350 billion or $700 billion is always floated out there. It is ALREADY MUCH WORSE than that - they have already loaned out $2 TRILLION in other loans to unknown recipients (caps are mine):
“Nov. 10. The Federal Reserve is refusing to identify the recipients of almost $2 TRILLION of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends FAR MORE THAN THAT in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.”
That is unsat. 2 trillion and not even beginning to help and nobody knows where the money truly is. This is a mess. I guess sometimes I wish I was one of many Americans were are ignorant of everything and think everything is hunky doory. lol...not really it is better to be informed.
insanity
That is not a stimulus plan. It is a depression plan.
I do not think deflation is worse, and I do not even think it would be possible to have runaway deflation in our economy. I feel that right now deflation would be a good thing for our country, but I’m only a rightwinger that went to Exeter and Harvard so what do I know.
Deflation relating to the credit markets is what the typical consensus economist fears, but as we see now, we can also lose liquidity while having inflation, which is a worse situation to be in. Short term consumer prices are not a good measure to use when judging deflation, so I can see how some TV retards might use that as a scare right now, but watch the inflation, and watch the Demon-rats take a dump on the value of the dollar. It’s probably a good time to take your dollars and make them euros.
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