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Secret Obama memo reveals he wanted the $800 billion stimulus to be $1.8 trillion
american.com ^ | February 22, 2012 | James Pethokoukis

Posted on 02/22/2012 3:32:01 PM PST by Marguerite

It could have been bigger. Much, much bigger.

Back in late 2008, soon-to-be Obama White House economic adviser Christina Romer prepared a policy memo—the contents a mystery until now—about how the new administration should deal with the collapsing economy. Romer thought to really do the job, the stimulus—later called the American Recovery and Reinvestment Act—should have been $1.8 trillion (highlighting for emphasis):


(Excerpt) Read more at american.com ...


TOPICS: Business/Economy; Government
KEYWORDS: moneywaste; spending
This memo was dug up by Noam Scheiber of The New Republic magazine. Now, Obama never saw that $1.8 trillion number since Larry Summers, who was leading the econ team, thought it was politically impossible:

When Romer showed Summers her $1.7-to-$1.8 trillion figure late the week before the memo was due, he dismissed it as impractical. So Romer spent the next day or two coming up with a reasonable compromise: $1.2 trillion. In a revised document that she sent Summers over the weekend, she included the $1.2 trillion figure, along with two more limited options: about $600 billion and about $850 billion. … But with less than twenty-four hours before the memo needed to be in Obama’s hands, Summers informed her that he was inclined to strike the $1.2 trillion figure. Though Summers, like Romer, believed more stimulus was almost unambiguously better, he also felt that a $1.2 trillion proposal, to say nothing of $1.8 trillion, would be dead on arrival in Congress. Moreover, since Obama’s political operatives were convinced that any stimulus approaching a trillion dollars was hopeless, Summers worried that urging more than this amount would stamp him and Romer as oblivious in their eyes. “$1.2 trillion is nonplanetary,” he told Romer, invoking a Summers-ism for “ludicrous.” “People will think we don’t get it.”

1 posted on 02/22/2012 3:32:20 PM PST by Marguerite
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To: Marguerite

Well that explains it! He just needs another chance...NOT!!


2 posted on 02/22/2012 3:34:56 PM PST by AndrewB (FUBO)
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To: Marguerite

You sure it wasn’t $17 - 18 trillion dollars? Wouldn’t surprise me!!


3 posted on 02/22/2012 3:40:26 PM PST by 2ndDivisionVet (You can't invade the US. There'd be a rifle behind every blade of grass.~Admiral Yamamoto)
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To: Marguerite

Didn’t they, in effect, get $1.8 trillion and more? After the initial stimulus, the new spending total became the new baseline. Shouldn’t ‘stimulus’ be a one time thing? Obama got four years of it.


4 posted on 02/22/2012 3:44:56 PM PST by fhayek
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To: Marguerite

and he wants us to pay for his big spending and waste. The Democrats continue to support the big spending and waste.


5 posted on 02/22/2012 3:54:33 PM PST by FreedBird
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To: Marguerite

Our apologies...
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6 posted on 02/22/2012 3:57:08 PM PST by Tigen (I shall raise you one .)
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To: Tigen

Oops. I think I screwed up the link, when I copied it.

Here it is:

http://blog.american.com/2012/02/secret-obama-memo-wanted-the-800-billion-stimulus-to-be-gasp-1-8-trillion/


7 posted on 02/22/2012 4:02:59 PM PST by Marguerite (When I'm good, I am very, very good. But! When I'm bad, I'm even better)
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To: 2ndDivisionVet

“When the economic team finally walked through the contents of the memo with the president-elect on December 16, Romer mentioned her preference for over a trillion dollars. Summers allowed that bigger would be better. But these points were made in passing. “I don’t remember that as part of the discussion,” conceded one member of the economic team in attendance. The final version of the memo had framed the debate around two basic choices—roughly $600 billion and roughly $850 billion—and these were the focus of the conversation. “The option of going well above $800 billion was certainly raised, but it was not discussed extensively,” Romer later recalled in an interview. “We felt the most important thing was to make sure the president-elect was on board with a plan as large as $800 billion.”

http://www.tnr.com/article/politics/100961/memo-Larry-Summers-Obama


8 posted on 02/22/2012 4:09:32 PM PST by Marguerite (When I'm good, I am very, very good. But! When I'm bad, I'm even better)
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