George's Bottom Line
Reporting and analysis from ABC News Chief Washington Correspondent and "This Week" Host George Stephanopoulos

George Stephanopoulos reports on events in politics, Congress and the White House for ABCNews, on the air and online. He interviews top newsmakers, discusses the events of the week and looks to the week ahead each Sunday on 'This Week.'

November 2009
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

« Previous | Main | Next »

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)

User Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

bush spent incorrectly, in a way that doesn't benefit the whole population all of the time. Instead a few (dam few) part of the time. Obama will need to spend correctly in a way that benefits every citizen all of the time. He needs to get the money (all the money)moving in all directions every day between every person. The money going to the oil and product manufactures out side of the country needs to stop. Import/export dollar for $ both ways. You don't buy we don't buy. You buy we buy.

Posted by: Pacific North West | Nov 11, 2008 11:12:41 PM

Just wait, PELOSI & REID will be asking to bail out the airline industry. then they will put massive restrictions on th Oil & Gas Industry that these companies will have to charge us $5.00 a gallon to break even. News Media will put the blame on Big Oil companies instead of PELOSI & REID. I just heard that the Dem's want ALL ranchers to take down their high fences. I guess it is inhumane to keep the wild aminals on your property. Say good bye to wild game hunts and the way you now earn a living.

Posted by: 55Mariposa | Nov 11, 2008 11:24:33 PM

California...would you PLEASE vote out the Bitxh Pelosi....thank you...

Posted by: 55Mariposa | Nov 11, 2008 11:26:00 PM

what everyone needs to remember is the republicans bear the fault on this one. I bet our deficit is being understated by bush just like it was with bush senior. When clinton took office we found out it was double what was stated. This is going to take a massive amount of money to fix, better ge ready, but hey some new bridges here is better than in iraq.

Posted by: Paul | Nov 11, 2008 11:28:08 PM

Ya'll print some more money. It's Obama's turn to get paid.

Posted by: WestCoastMessenger | Nov 11, 2008 11:33:53 PM

I THINK THAT EVERYONE SHOULD JUST LET GOD LEAD AND DIRECT OUR PRESIDENT,AND STOP FUSSIN ABOUT DEMOCRATES OR REPLUBIC BECAUSE NO MATTER HOW YOU FUSS ABOUT IT,IT'S ONLY GOING TO BE DONE THE WAY THE LORD SEE'S FIT NOT US!SO WE NEED TO PRAY AND ASK THE LORD TO TAKE CARE OF US,AND STOP WORRYING ABOUT THINGS YOU CANT CHANGE

Posted by: DORIS | Nov 11, 2008 11:45:29 PM

It is just so easy to blame everything on Bush, but Congress has to take its fair share of the blame. Nothing is done in isolation. If everything is done by Bush alone, why bother even electing a Congress. The democrats have had control over the last 2 years and they haven't made anything better either. Both parties can share the blame.

With all of this spending, we are leaving a lot of debt for our future generations to have to pay off. We have to be looking at ways to also be cutting the budget also. We cannot continue to bail out every industry that has its hand out.

Posted by: concerned citizen | Nov 12, 2008 12:02:02 AM

Well if you don't want it you can send your share back.

Any takers?

Not only has bushed bailed out Banks he has given them a tax brake at the same time, and now I read that our bail out money is going for bonuses.

I am sure those bonuses are really making an impact.

Welfare for the rich, a republican idea.

Posted by: Thinking | Nov 12, 2008 12:16:15 AM

We are already in a DEPRESSION!!!

They just won't say it!!!

The markets just need to crash!!!

Posted by: sisterdearest09 | Nov 12, 2008 12:29:37 AM

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

Obama doesn't take office until Jan 20th. Until then, put a cork in it on what he is or is not doing. It's amazing you people are complaining already and he isn't in office yet.

Posted by: Jwench | Nov 12, 2008 2:28:52 AM

It is just so easy to blame everything on Bush, but Congress has to take its fair share of the blame. Nothing is done in isolation. If everything is done by Bush alone, why bother even electing a Congress. The democrats have had control over the last 2 years and they haven't made anything better either. Both parties can share the blame.

With all of this spending, we are leaving a lot of debt for our future generations to have to pay off. We have to be looking at ways to also be cutting the budget also. We cannot continue to bail out every industry that has its hand out.

Posted by: concerned citizen | Nov 12, 2008 12:02:02 AM

Who was in control the 6 previous years? That's right, the Republicans. This just didn't happen in the past two years.

Posted by: Jwench | Nov 12, 2008 2:31:06 AM

Good grief people - will you never let go of your toxic mumbo jumbo! At least 70% of our country voted against that kind of rhetoric - or didn't you hear?

Posted by: Lillian | Nov 12, 2008 2:40:11 AM

we NEED raparation for black people, that is the only way to heal the nation

Posted by: jen | Nov 12, 2008 2:50:20 AM

You folks are fools if you think gas prices will stay below $2 a gallon for very long.

As soon as the economy picks up a bit or there's any kind of military conflict involving producer states, the prices will go right back up again.

The problem with US automakers is they kept making kludgy gas hogs, even after the major supply problems of the '70s. The problem with American people is they kept on buying them... until gas got to around $5 a gallon.

What this country really needs is

(1) A very high gasoline surtax

(2) Speed limits back down to 55 mph

(3) Government investment in energy efficiency and renewable energy


Posted by: Born in the USA | Nov 12, 2008 3:15:03 AM

Doris,

The Lord helps those who help themselves.

Geeze

Posted by: Born in the USA | Nov 12, 2008 3:18:03 AM

To be totally honest I am ashamed of the partisan statements that people make assuming that Obama is responsible for our current financial conditions. He is not POTUS yet and he has assymbled a very responsible economic advisory team to try to figure our a reasonable solution to our economic woes. The "DEEP" hole that has been dug was dug by Bush / Cheney and the Iraq war. The 700B bailout was to pay for the exiting administrations bonuses to keep it real. I trust Obama to make reasonable decisions and I highly suggest that Americans give him the chance to bring the CHANGE WE NEED.

Posted by: Lou | Nov 12, 2008 3:58:43 AM

Under the Bush/Republican free market economics imagine - we would have lost the auto-industry, almost all the WS banks and leading insurance companies.

Where as Germany has the strongest economy in Europe - and is the most industrial nation on earth - and they back their industry.

Posted by: roxn | Nov 12, 2008 5:20:29 AM

Jesus, where are we going to get this money?

Posted by: a reader in georgia | Nov 12, 2008 6:59:03 AM

Steve:

If you want the things you write than go to Russia they already have it! I am sure they will welcome another Brain Dead person into their country! While you are there tell Putin we all said hello and go to He**

Posted by: chuck | Nov 12, 2008 7:00:11 AM

NO MORE BAILOUTS!!! IF THE MONEY DON'T COME DIRECTLY TO US, THE PEOPLE, THEN WE SHOULDN'T BE GIVEN IT OUT. IF YOU WANT TO STIMULATE THE ECONOMY, GIVE US THE MONEY TO SPEND!

Posted by: Will | Nov 12, 2008 7:06:19 AM

way to go guys----put 500 billion in the economy--spend it at wallmart --and the waltons plus the chinese will be the benifactors----DO SOMETHING ABOUT FOREIGN TRADE AND GET SOME OF OUR JOBS BACK.---and stay away from free trade with colombia,or we will be in worse trouble.we dont want to be a third world country.

Posted by: rodney | Nov 12, 2008 7:10:37 AM

will
would it not be nice if we got a 50% rebate on a new fuel efficient car---the auto industry would boom, and we all would benifit in many ways----less oil dependancy----cleaner air----more money in circulation cheaper transportation. but once again it is all about big business---the same old crap.

Posted by: rodney | Nov 12, 2008 7:15:00 AM

Wow, am I really seeing Republicans complaining because they might get some of their tax dollars BACK? I thought that was the ultimate goal of the GOP: to put more money in the pockets of the consumers.

Posted by: Lee | Nov 12, 2008 7:25:24 AM

I'd rather see a $500 billion stimulus than giving $700 billion to Wall Street thieves and low lifes so they can pay their bonuses and big salaries. Its sink or swim time for Wall Street bankers.

Posted by: mike | Nov 12, 2008 7:32:01 AM

YOU CAN BE ASSURED THAT BUSH WILL TAKE CARE OF HIS BIG BUSINESS FRIENDS BEFORE HE IS GONE-----AND THAT IS A FACT.

Posted by: rodney | Nov 12, 2008 7:36:42 AM

Post a comment