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Should They Have Called It The 'Stabilization' Act?

July 16, 2009 4:38 PM

DeNies ABC News' Yunji de Nies reports:

Turns out the $787 billion "American Recovery and Reinvestment Act" (AARA) was not designed for full economic recovery, but rather to "stabilize" the downturn.  That's the word from White House officials today, who held off-camera briefings with reporters on how the AARA is working so far.

"This legislation was designed to cushion the downturn," said White House Press Secretary Robert Gibbs. "That's why we have always talked about this as one function of economic recovery."

When pressed about the change in terminology, Gibbs said he was not trying to temper expectations after the fact. "I can probably find 15 or 20 occasions when I said this in the lead up," Gibbs said, explaining that he had always defined the AARA as part of a "multi-legged stool." 

Senior Economic Adviser Jared Bernstein said that the economy is improving -- or at least getting "less bad."  And he said, that's a good thing.

"It's always challenging to explain that things getting less bad is actually a necessary path on the way to them being good, but that's the truth," Bernstein said. "The trends have to go recession, stabilization, recovery. Negative, less negative, positive."

He continued, "For many key indicators, not all but many, we're in that second stage, we're in that stabilization stage. And it's a fragile place to be, and it's a good thing that this recovery act is a two year plan."

Bernstein said the administration will gauge recovery on the basis of job growth, and noted that even when the recession is formally declared over, their work won't be.

"When the business cycle dating committee declared the recession over, from the perspective of American families, from the perspective of our administration, that's not the end," Bernstein said. "We've got to have an economy that's not just growing at a percent or two, but that's growing fast enough to bring working families along with it."

The White House says ultimately the AARA will save or create 3.5 million jobs over the course of its two year implementation. Ed DeSeve, senior adviser to the president for Recovery Act Implementation, said so far $183 billion has been obligated (contracted) -- of that $64 billion had been outlaid (spent). 

DeSeve did not draw a distinction between obligated and outlaid money, as he said obligated funds were already having an effect. DeSeve said that 150,000 jobs had been created or saved so far, and that that number will reach 750,000 by the end of the summer. 

Some Republicans have been critical of the AARA, saying that job growth hasn’t been quick enough. 

Gibbs defended the pace of spending, saying that the White House is pursuing a path that spends the money as quickly, but also as responsibly as possible -- not just to create and save jobs, but also to lay a foundation for future economic growth.

"If this was a four month, $787 billion dollar program, fire away. It was designed as a two year plan," he said.

When asked about a second stimulus, all three left the possibility open.

Gibbs said the president "isn't ruling anything in, he isn’t ruling anything out. If there are things that can be done to spur the economy back to recovery faster, they'll certainly be considered."

-- Yunji de Nies

July 16, 2009 in White House | Permalink | Share | User Comments (86)

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An excellent example of 'spin'.

Posted by: LongT | Jul 19, 2009 9:14:22 PM

It did do what they planned it to do. It allowed the government to take over businesses and industries and give control to the government. It wasn't designed to "bailout" or "save" anything. I'm amazed that so many people fell for that. Well, maybe not. I mean he did preach socialism during his campaign and women fainted in his presence. I'm thinking people weren't really paying attention to his agenda, but succumbed to his cult of personality. Women do faint for pop-cons, but not promises of Marxism. Still, this is what was chosen and we must suffer the consequences of it. Now he and the ruling party will take this "success" and build on it and seize control of more and more and put it under government rule. I mean, even now, Obama himself wants the White House to directly control Medicare payment rates and have the Congress sign off on it! It's law in reverse! His plans are to be a dictator. No wonder Hugo Chavez is mentoring Obama and impressed by what he's done so far. To Obama, the people aren't there to represent, but to organize into a force to use against opposition of his Marxist agenda. Remember, he's planning to build a domestic military police force to manage the citizens. The military isn't allowed to police the people without Martial Law, but not a Domestic Military. That will be their purpose and his plans are for them to be as well funded, as large, and as powerful as the Navy, Marines, Air Force, and Army. Hey, what could possibly go wrong with that eh? I can't imagine anything worse than a national version of the attacks at Waco or Ruby Ridge... Right?

Posted by: TexBork009 | Jul 18, 2009 4:43:14 PM

Posted by: Traffic Cop Timmy | Jul 17, 2009 1:52:41 PM

Excellent - Keep this handy - I'm sure it will be useful in the future to feed to the Obamabots as they mobilize to back up the spin that "the ARRA is working as intended" and the "peak of job creation is not expected until late 2010."

Posted by: tjp612 | Jul 17, 2009 2:01:06 PM

More than nitpicking one word from the mouth of The One, this is part of the new GOP video:

White House East Room, January 28, 2009 - "Now most of the money that we're investing as part of this plan will get out the door immediately and go directly to job creation, generating or saving three to four million new jobs. And the vast majority of these jobs will be created in the private sector. Because, as these CEOs well know, business, not government, is the engine of growth in this country."

Posted by: Traffic Cop Timmy | Jul 17, 2009 1:52:41 PM

this administration is getting downright orwellian. from the revisionist approach to the stimulus to the new definition of "bipartisanship" which the white house says is met when the democrats simply give the republicans an opportunity to be heard even though no republicans vote in favor of a law. it took hard-core republicans a good 6 years before they would admit that bush was a goofball and a failure (although some still refuse to admit it). i wonder if hard-core democrats will ever come to the same conclusion. i fear the answer is NO, because it appears that most hard-core democrats have truly been overcome by the cult of personality that surrounds obama.

Posted by: davidfrat21 | Jul 17, 2009 11:46:51 AM

So when I highlight one part of the president's stimulus-pitching speech when his supporters want to highlight other parts of the speech, I am 'nitpicking.' Here's another line from that same speech, lest I be further accused of digging out one single line that does not accord with the rest of the speech. The president also said back in his January speech, "Finally, this recovery and reinvestment plan will provide immediate relief to states, workers, and families who are bearing the brunt of this recession." Note the use of the "immediate."

And as you say, Timmy, this was a major address by the president, where he was carefully crafting his message to sell the stimulus plan. It was not even a press conference comment, where one could say he was not able to be precise, or an off the cuff remark at a photo op (love the way you threw in that ice cream shop reference, TCT). Words matter, the president tells us. I am simply pointing out words that he used.

Posted by: moderate | Jul 17, 2009 11:09:13 AM

The President has gone to pains to clearly and repeatedly tell us that the economic crisis would not be an easy fix, nor would it be quick.

He also repeatedly told us that things might well get worse before they get better.

He addressed us and told us these things a number of times.

That someone would pick one word out of one sentence and try to prop up an argument on that is very weak indeed, transparently so - and reveals an agenda to wrongly smear the President.

Posted by: danita | Jul 16, 2009 10:17:30 PM
___________________________________

Of course, he said these "few words" while he was selling his plan to the public. Not like he happened to mention it offhandedly one day while buying ice cream. He specifically used these words when asked about the plan to sell it to the public. Without the job carrot dangling, he knew it would get nowhere.

Posted by: Traffic Cop Timmy | Jul 17, 2009 10:48:25 AM

I misquoted the President - according to moderate, he actually said "immediately jumpstart job creation". Probably still up to loose interpretation, depending on how things are going. ;-)

Posted by: Traffic Cop Timmy | Jul 17, 2009 10:42:10 AM

moderate, apparently we have a different interpretation of the President's use of "jump-start the economy". But that's just us.

I guess what he really meant was hold onto most of the money until mid-2010 and then throw open the spigot for the 2010 mid-term elections.

Posted by: Traffic Cop Timmy | Jul 17, 2009 10:39:24 AM

===First of all, a country that claims to be based on Christian values should not have a problem taking care of the least among us, to be our brothers keepers. ===

I didn't realize that Christ was referring to paying forced taxes. If that is all it takes to be a good Christian, some of us are better than others.

Posted by: Axey | Jul 17, 2009 9:46:41 AM

"You can research the plan on the White House web site."

Yeah, because the WH is soooo objective and soooo honest! If the WH says it is so, it is so!

Posted by: tjp612 | Jul 17, 2009 9:01:03 AM

To quote a friend of mine "they are about to find out what it is like to pay child support". "For obama's baby".

=======

Does that make me a "baby daddy"?

Posted by: tjp612 | Jul 17, 2009 8:58:06 AM

"First of all, a country that claims to be based on Christian values should not have a problem taking care of the least among us, to be our brothers keepers."

No, we shouldn't. How about we start with our "leadership" who for some reason feel they are above doing their part to be our "brother's keeper" by not paying taxes (Rangel, Dodd, Geithner, Daschle (proposed leader), Hilda Solis, etc.) and those who enter in "pay-to-play" schemes to take from their brothers in their self-interest (e.g., Blago, Richardson, etc.). Let's not forget the ambulance chasers (e.g., John Edwards) who act on behalf of their brothers while taking 50% of damages awarded.

Lastly, let's consider a brother who shares the same bloodlines as our Dear Leader: When is Barack Obama going to send some money over to his brother George in Kenya to get him out of his shack? Obama spends more on cigarettes in a week than George earns back in the homeland.

I don't doubt your intents and you seem like a good person, but opposition to a faultily constructed bill that will lower quality of care for all (well, except government leaders (e.g., Congress, the president and their families - they will not be migrating to the "public" plan) does not make us selfish.

Also, when TORT REFORM is placed on the table to bring down costs and MANDATORY PARTICIPATION BY ALL GOVERNMENT OFFICIALS then I'll consider supporting this measure. Otherwise, I would prefer the government keep out of my healthcare.

Posted by: tjp612 | Jul 17, 2009 8:55:25 AM

Typical dem move. If it's not working change what you say you wanted it to do. In all honesty it's too soon to expect results, and they wasted too much of the money. What they should have done was given money directly to the people they steal it from and they should have given more to the unemployed.

Posted by: Joe Eckhardt | Jul 17, 2009 8:40:06 AM

From day one of the Obama administration, Republicans have been doing everything possible to undermine his presidency. Republicans do not care about the country, they only care about their own re-election.

Posted by: Eric | Jul 17, 2009 8:37:10 AM

Obongo, Polosi, and co. have done more damage in a few months than Bush did in 8 years. Start storeing canned goods, because I assure you we are heading for distruction!

Posted by: george | Jul 17, 2009 7:50:04 AM

Ah yes. Pass this "stimulus" or unemployment will go to 8%!

Ooops.

Posted by: drjohn | Jul 17, 2009 7:44:59 AM

First of all, a country that claims to be based on Christian values should not have a problem taking care of the least among us, to be our brothers keepers. For 8 years, we had no trouble spending trillions of dollars & thousands of lives in Iraq but we scoff at spending money here at home, calling it communisim & socialism. We have become selfish & gluttonous. We worship the mighty dollar, the golden calf. And the most vocal of following this path claim to be followers of Christ. Amazing the hypocrisy...
We are ridiculous if we think that a problem that took at least a decade to create will dissolve in 6 months. It's not realistic and people need to learn to have patience. We have become a country that needs instant gratification. Instead of learning anything from this experience, people are right back to wanting more and more. Give us back our jobs right now! Get us out of debt now! Well, how about some sacrifice? How about it takes time to undo what was done for 10 years? How about having some values that you actually have some integrity around? Please don't call yourself Christian and then claim helping others is socialism or communism. Because otherwise you are saying Christ was a socialist. So either you are a Christian or you're not. You can't have it both ways. Going to church on Sunday and wearing a cross don't make you Christian - following the actual teaching of Jesus Christ day in and day out to the best of your ability does.

Posted by: AnotherOneofGodsChildren | Jul 17, 2009 6:58:18 AM

moderate . ..

You most surely did nitpick one word from one sentence from the President and try to hang an entire argument on it. Weak indeed and transparent.

You did this when you know perfectly well the President has very CLEARLY and repeatedly cautioned people that the recovery would not be easy, nor would it be quick, and that things might get worse before the get better.

Your attempt to smear the President with this feeble condemnation using one word speaks volumes - I have found the moniker 'moderate' laughable, and still do.

Posted by: john | Jul 17, 2009 2:32:09 AM

And for the record,
A.) Obama must have by now set the rcord for most lies by a first term president and he is only 6 months in.

B.) Bush is very complicit in this mess also spending out of control for 6 of 8 years, but Congress is the real culprit in this mess.

C.) I truly predict civilian unrest is imminent as those who are being robbed by Peter to pay lazy Paul will be forced to jump ship, and then Peter will be forced to Rob Paul.

D>) Have any of you ever tried to start a business lately? Its utterly high risk, yet your success is subject to a tax penalty, and if you fail you lose everything, unless of course your to big to fail.

E.) America thanks in large part to the media i.e the FREE PRESS (joke) is a polarized nation of warring economic and social philosophies. The media has taken sides and is no longer an unbiased government watchdog. It has largely become a tool of the parties,and currently mostly for the left liberal democratic party. Even lefties proudly acknowledge that.

Be careful what you wish my friends. You just might get it. Byy that I mean this.

You may penalize the Rich into oblivian and feel good about it, and they will become extinct. $hit rolls down hill and so does the national debt. The faster it snowballs, the faster it will roll downhill, and those at the bottom of the hill stand to be crushed.

Its not the rich peoples fault. Its the SPENDERS Fault, ie Pelosi, Ried, Obama, Bush, any politicaisn that signs a bill withouit reading it, any politician who makes a promise he cant or doesnt have the balls to keep, and activist who pressures a govt or business to spend what they dont have, and any individual who spends more than they can possibly pay back.

We are imploding, literally being crushed by a Rolling Snowball of over spending debt. All these huge beauracratic tax and spend proposals, stimulus, Healthcare, Cap and Tax, promise to grow that snowball ever faster. It is unsustainable, and it could be the great equalizer, thus rendering us all trying to survive inflation and even higher tax burdens and opne day, somebody is going to have to tell the Chinese, we cant pay you back. And then what? War? Famine? Locust. Well I got news for ya.

The locusts have arrived. they are collectively called the US COngress and have siblings called state governments who also practice the same fiscal ineptitude. They feed off of our energy and rob us of our dignity, pride, productivity. Somehow, they think they are doing us a favor.

Posted by: WereDoomed | Jul 17, 2009 1:51:02 AM

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