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2016 Postmortem
Related: About this forumObama’s ‘Stealth Stimulus’ Renewed
http://swampland.time.com/2012/02/17/obamas-stealth-stimulus-renewed/Obamas Stealth Stimulus Renewed
By Adam Sorensen
Back in December of 2010 when Congress was faced with the imminent expiration of the Bush tax cuts, Democrats and Republicans made a pretty straight-forward tradeoff. President Obama would allow extended lower rates on top-tier income, anathema to liberals, in order to secure a moderately sized economic booster shot. The Stealthy Stimulus, as some dubbed it, came at a high price to Democrats, but the White House seemed to see its potential benefits to the recoveryand Obamas re-election prospectsas paramount.
On Friday, the Republican-controlled House voted 293 to 132, to extend those same stimulus measuresunemployment insurance and a payroll tax holiday for 160 million workersthrough the end of 2012, joined by the Democratically helmed Senate, 60 to 36. While 91 Republicans and 41 Democrats voted no in the House, and 30 GOPers, five Dems and one independent defected in the Senate, the tradeoff was less dramatic than the 2010 deal. Republicans won $5 billion in cuts to a preventive health fund established by Obamas health care law and increased pension contributions for federal workers, as well as a reduction in the maximum duration of jobless payouts from 99 weeks to 73 weeks in the most hard-hit states.The legislation also included an annual measure to prevent a reduction in Medicare reimbursement rates.
While the package lacks the scope of the broad tax cuts favored by the GOP or Obamas perennial spending proposals for infrastructure, manufacturing and R&D, economists predict it will have an appreciable effect this year. It contains whats considered an efficient staple of Keynesian pump-priming: Giving money to people who are very likely to spend itunemployment benefit dollars will fill gas tanks and buy groceries throughout the year. And while the payroll tax cut does not offer the same bang-to-buck ratio, an extra $1,000 is no small thing for $50,000-a-year wage-earneror the Obama campaigns communications outfit.
Republicans are well aware of this dynamic. This is an economic relief bill, not a growth bill, House Speaker John Boehner said in a statement Friday. The only reason the provisions at the core of this measure are even necessary is because the Presidents economic policies have failed. Failed or not, the economy is beginning to pick up and Obama has just secured another 8 months of stimulus before voters deliver their final verdict on his first term.
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Obama’s ‘Stealth Stimulus’ Renewed (Original Post)
babylonsister
Feb 2012
OP
Johnny2X2X
(19,066 posts)1. Bingo
This highlights the difference in philosophies. Democrats know that this is an extremely effective and efficient stimulus, Republicans think only the rich can stimulate the economy. It's an honest difference of philosophy and that's why the Republicans let this through, they don't believe it will help as much as it will because rich people aren't seeing huge cuts.
Since they were in "cave" mode though, I would have liked to see the Dems hold their feet to the fire a little bit though, but I guess in the end you take the victory when you can.