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Obama Advisers Push $500 Billion Stimulus
November 11, 2008 7:23 PM
President-elect Barack Obama is hearing from private sector economists, and some members of his economic advisory team that Congress should consider -- and he should sign into law in January -- a far broader stimulus package than anyone has publicly discussed to date.
Instead of $300 billion dollars, which has been the upper limit, they are now talking about $500 billion, which is 3 to 4 percent of GDP.
These advisers are looking at analysis that says next year unemployment could top eight percent, private sector spending could drop six percent of GDP, and the Federal Reserve is basically out of room to do anything more with monetary policy.
So they argue the nation's economy will need that injection of capital.
How? They're talking about implementing it through infrastructure -- roads and bridges. Tax cuts. Investments in so-called green-jobs and alternative energy development. Unemployment extensions. And other aid to state and local governments.
But the big question is: how do you get the stimulus without making it permanent spending that increases the deficit over the long term?
President-elect Barack Obama has made no final decisions on a stimulus package, but this is what they're contemplating right now.
--George Stephanopoulos
November 11, 2008 in Barack Obama | Permalink | Share | User Comments (122)
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God!
How much and for how long are the Democrats going to Rape the Country.
I think all places receiving these bail outs should have to open their books up to the public.
We the people want to see what is really going on.
Posted by: seah | Nov 11, 2008 7:42:57 PM
How much are the Democrats going to rape the country? You make me laugh.
Last month, George Bush and Henry Paulson asked for a $700 BILLION stimulus.
Bush and Paulson - Democrats?
No.
REPUBLICANS.
Now seah, my stupid republican friend - Who's raping the country?
Posted by: clifton | Nov 11, 2008 7:52:22 PM
The congress should pass the following bills in the first 100 days:
* Union Card check
* Increase presidency term limits to 8 years
* Single payer universal health care
* Remove Presidency term limits
* Change Marginal rates to what existed in 1954-1963.
Posted by: Steve | Nov 11, 2008 7:52:29 PM
this is not the fault of democrates but the failed policy of mr bush got us where we are today.
Posted by: rrmo | Nov 11, 2008 7:59:31 PM
seah: "How much and for how long are the Democrats going to Rape the Country."
Are you deliberately trying to be funny, because that comment made me laugh out loud. You make it sound like Democrats have been in charge the last 8 years, when it has been Republicans in the Administration, and Republicans in the majority in Congress or - more recently - setting new records in filibusters/failed cloture votes in the Senate.
I thought the Republican Party of Ignorance learned in the election just last week that the Big Lie just isn't working anymore.
Posted by: jhw539 | Nov 11, 2008 8:04:16 PM
Steve: "The congress should pass the following bills in the first 100 days:"
Obama isn't an idiot, although you may be to even suggest a 91% top tax bracket like under (Republican) Eisenhower. Actually, by suggesting no presidency term limits I would peg you more as a troll - someone who has fun posting silly comments to get a rise out of readers. Not really irritating, but a bit pathetic.
Posted by: jhw539 | Nov 11, 2008 8:07:44 PM
Listen... this is not a Republican or Demroratic Issue. This economic calamity is the cause of both sides stupidity, greed, and the total lack of caring what is the best of the American People. They work for us, yet it seems that they think the opposite. Both sides are to blame!!!! We cannot afford to keep throwing virtual money into this issue. When you or me, have no way to afford something can we just make money up so we can keep spending? Nope we have to go without. Stop spending money we dont have. We are bailing people, businesses, and industries that took advantage of the situation and got caught with the hot potato. Stop making faiure acceptable!!!
Posted by: Jeff | Nov 11, 2008 8:25:36 PM
The congress should pass the following bills in the first 100 days. I know the Bush popele did not like this bill. This is not the fault of democrates but the failed policy of mr Bush got us where we are today.Stupid republican friend - Who's raping the country?
Posted by: Amir Mohammed | Nov 11, 2008 8:30:57 PM
2 months left till he takes office, started at 300b now 500b, by then it will be around 1 trillion...what the heck, lets just spend a couple trillion, it's just make believe money anyway (if we don't have any money then it has to be make believe right!) or is China gonna give us some more?
Posted by: samhiguchi | Nov 11, 2008 9:00:08 PM
Anyone ever try to think about where all this money is going to come from ? There aren't nearly enough super-rich people in America to tax to come up with the $Trillions this is all these bail-outs are going to cost. I don't care who caused it all, the numbers are astronomical.
Posted by: garand911 | Nov 11, 2008 9:04:58 PM
Gas is $1.93 where I'm at in Indiana.
That's a stimulus package of it's own!
Posted by: Julie | Nov 11, 2008 9:10:03 PM
Where the eff is this money coming from aleady! Enough!
Hey, I am in Indianapolis & the gas this evening was $1.79. We just bought another new car! We are doing our part. Enough with the hand outs that we will be paying for forever!
Posted by: ooooo | Nov 11, 2008 9:40:12 PM
"Anyone ever try to think about where all this money is going to come from?"
garand911,
The same place that the funding for the Iraq war came from, from borrowing.
Not that your question is not worth asking. It would have been a great question to ask before the Iraq war. The best estimate is that we have spend $1 TRILLION DOLLARS on the war in direct costs.
But that ignores the undeniable obligations to our vets, many of whom are coming back home with post-stress trauma, amputated and paralyzed limbs, and brain injuries. One study set the past, present and future cost of this bloody war at $3 TRILLION DOLLARS.
Did anyone stop to ask where the money was going to come from?
As it happens, and probably temporarily, this is actually a good time for the government to borrow funds. Where do you think everyone put their money when the stock market crashed and everyone suddenly decided that it was too risky to buy corporate bonds? The answer is U.S. treasury bills, aka federal securities.
There are two very sound justifications for borrowing the money right now for a huge stimulus. The first is simple Keynesian economics. If the government holds back now you may have the pleasure of telling your grand kids that you lived through the Great Depression II.
An economy is all about money on the move. An economy where money is not on the move is dead, dead, dead.
The second justification is one that even the most conservative economist would recommend to a business: It makes sense to borrow where the money is used to build the lasting facilities, or infrastructure, that creates future growth.
Posted by: John McCain's conscience | Nov 11, 2008 9:50:47 PM
That's right ... let's keep on rewarding bad. It seems to be becoming the American way.
Posted by: JDD | Nov 11, 2008 9:52:56 PM
oops... I meant to say:
That's right ... let's keep on rewarding bad behavior. It seems to be becoming the American way.
Posted by: JDD | Nov 11, 2008 9:55:22 PM
The whole idea of creating all of these jobs from rebuilding the infrastructure raises in my mind a number of problems .
1.Will unemployed blue and white collar workers take the jobs?
2.Do we have the skill workers to do a major rebuilding or will we be spending money and time in training and then the jobs are gone?
3 Other than home building is the construction industry in deep trouble?
4. With the demand for building materials high world wide still will we be able to get enough at reasonable cost.
5What about trade unions? Will they buy on to non union workers on job sites?
6. Today is not like the time of the great depression were many people made the lively hood with their hands, not today.
7Big constructions projects take years of planning and time to complete. Do they plan on skipping in this area?
I am all for this but we really need more information than just to work on the infrastructure to help pull the economy up. We need real solutions to the problems not just a laundry list of what might be done.
Posted by: William | Nov 11, 2008 9:55:54 PM
Listen... this is not a Republican or Demroratic Issue. This economic calamity is the cause of both sides stupidity, greed, and the total lack of caring what is the best of the American People. They work for us, yet it seems that they think the opposite. Both sides are to blame!!!! We cannot afford to keep throwing virtual money into this issue. When you or me, have no way to afford something can we just make money up so we can keep spending? Nope we have to go without. Stop spending money we dont have. We are bailing people, businesses, and industries that took advantage of the situation and got caught with the hot potato. Stop making faiure acceptable!!!
Posted by: Jason | Nov 11, 2008 10:02:11 PM
I like the text listed above -
Posted by: Joe Orlando | Nov 11, 2008 10:03:00 PM
I do recall that yesterday's headline was Pelosi & Reid sent a letter demanding Bush bail out the Big 3 Auto makers....The Big 3 got into the same mess that the housing industry got into..Sell new cars to people that still owe money on their existing car. People that have a huge debit ratio and can't afford a new car that cost $35,000. What the heck....is OUR gov't doing with OUR money....bailing out business that can't operate efficently....punish the business that operate efficently. Looks like the gov't wants to start owning a lot of our business...sounds like socialism to me.....
Posted by: 55Mariposa | Nov 11, 2008 10:04:08 PM
God!
How much and for how long are the Democrats going to Rape the Country.
Lord, help us see the light here! Just who was it who decided to do a deregulation that set this entire thing in motion? Did I hear, why, the republicans? I think it's time we called it straight here: the rapists are the Republicans.
Posted by: gracie | Nov 11, 2008 10:10:10 PM
Everybody voted for change? Where's the change? Obama is taking up where Bush left off on excessive spending.
Meanwhile, the "top 5%" that Obama is targeting to pay for all this extra spending are all moving their money into over seas accounts and getting ready to move their companie sout of the country.
Like I've been saying all along, bend over and get ready to take it up the ...... The middle class is about to pay and pay big.
Posted by: S Adams | Nov 11, 2008 10:14:32 PM
Books will be written years from now about how all this made things worse - created more misery and made the economic downturn last longer than it would have it more 'market' solutions had been used.
Posted by: Lil | Nov 11, 2008 10:22:38 PM
Right wing nut jobs: Give us all a break. Tomorrow Hannity and Limbaugh will be calling for the impeachment of Barack Obama... and the flock will follow, like the mindless sheep that followed George W. Bush into the abyss of Iraq and the Wall Street bailout. Incompetency like that of the Republican administration of George W Bush should be a criminal offense. Read "The War Within" by Woodward and then cry for America.
Posted by: Steve from Danville | Nov 11, 2008 10:36:16 PM
What about those stupid code names they have now. Renegade and Renaissance...what an F'n joke. Uppity and Arrogant is more accurate. And BTW, that old bag Nancy Pelosi has had 2 years to do something and that loser hasn't done crap to help out America...so it's not ALL Bush's fault...though the majority of it is.
Posted by: MBNA Joe | Nov 11, 2008 10:41:29 PM
WHAT IS WRONG WITH YOU GUYS? GIVE THESE DEMS, A CHANCE. OBAMA IS JUST TRYING TO GET US OUT OF THIS MESS THAT THE REPUBS, GOT US INTO. HE IS DOING WHAT HE SAID HE WAS GOING TO DO ON THE CAMPAIGN TRAIL. WHAT ELSE CAN HE DO? OR BETTER YET DO YOU HAVE ANY GREAT IDEALS THAT YOU CAN SHARE WITH THEM,THE PEOPLE? IF NOT, KEEP QUIET AND LET THE PEOPLE WHO KNOW HOW TO DO THE JOB,DO IT.
Posted by: Earnestine Bell | Nov 11, 2008 10:59:28 PM
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