Obama Gets More Stimulus, in Slices

[babylonsister]

http://swampland.blogs.time.com/2010/08/05/obama-gets-more-stimulus-in-slices/


Obama Gets More Stimulus, in Slices
Posted by Michael Crowley
Thursday, August 5, 2010 at 4:03 pm


A couple of weeks ago I wrote about the political dynamic preventing the Obama administration from pumping more spending into the economy, which some of its top economic officials believe would act as insurance against the possibility of a double-dip recession. Yesterday the Senate voted to approve $26 billion in direct aid to state governments, which are chopping their budgets, laying off employees, and generally putting anti-growth pressure on the economy. (And Nancy Pelosi has called a special House session to follow suit.) The good news is that thousands of state employees won't lose their jobs. That $26 billion is a small fraction of the $100-$150 billion in stimulus some mainstream economists had been hoping for this year. But when combined with the $34 billion in extended unemployment benefits that finally passed Congress last month, we're up to about $60 billion in stimulative spending out the door this summer. That should give the economy a marginal lift (even if it's probably too late to lower unemployment in a way that will save Democratic hides in November).

Meanwhile, the next best chance for getting more money circulating is a $30 billion small business lending bill that the Obama White House touted this week, but which Senate Republicans have been stalling for reasons that seems largely to do with wanting to deny Democrats a legislative win. When Republicans are denying the will of the Chamber of Commerce, which is spending mightily to dethrone Democrats this fall, you know something's up.

[bluestateguy]

1. This is good, but I would have had the original stimulus be larger

more like 1.1-1.3 trillion, rather than 787 billion, with the extra money going to public works and infrastructure projects.

[babylonsister]

2. The Dems wanted larger; the rethugs fought tooth and nail

against more $. So, while that's what should have happened, it didn't. Thank a rethug.

From 1/09:

Boehner to GOP: Vote against stimulus

http://www.politico.com/news/stories/0109/18024.html

[Jennicut]

3. If this is the way it has to be done, so be it. The aid is greatly needed.