Skip to comments.Secret Obama memo reveals he wanted the $800 billion stimulus to be $1.8 trillion
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 memothe contents a mystery until nowabout how the new administration should deal with the collapsing economy. Romer thought to really do the job, the stimuluslater called the American Recovery and Reinvestment Actshould have been $1.8 trillion (highlighting for emphasis):
(Excerpt) Read more at american.com ...
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 Obamas 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 Obamas 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 dont get it.
Well that explains it! He just needs another chance...NOT!!
You sure it wasn’t $17 - 18 trillion dollars? Wouldn’t surprise me!!
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.
and he wants us to pay for his big spending and waste. The Democrats continue to support the big spending and waste.
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Oops. I think I screwed up the link, when I copied it.
Here it is:
“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 dont 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 choicesroughly $600 billion and roughly $850 billionand 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.