Thursday, July 9, 2009

Stimulus II. A Whole New Survival Reality Series.

Tell Obama NO to stimulus number 2!

Tell your representatives NO!

WASHINGTON (CNN) -- Congressional Republicans tore into the Obama administration over the economic stimulus plan Wednesday, arguing that the White House is mishandling the distribution of the money while overstating the ability of the package to create jobs.

They criticized the White House for referring to the number of "jobs created or saved" by the $787 billion package -- a metric, they claimed, that is impossible to verify.

The White House Office of Management and Budget defended the plan, arguing that every federal dollar spent has, by definition, helped to ease the pain of the worst economic crisis since the Great Depression.

The Republican and Democratic leaders traded their arguments during a contentious hearing before the House Oversight and Government Reform Committee.

"In selling the stimulus package, the administration promised the American people that [the] legislation would create or save 3.5 million jobs and prevent the U.S. unemployment rate from rising above 8 percent," said Rep. Darrell Issa, R-California.

"I believe that the discredited Keynesian theory behind the effort is misguided, and I am convinced that it won't work," said Issa, referring to the theories of economist John Maynard Keynes. "Unfortunately, recent economic data has validated my opposition."

The economy has shed 3.4 million jobs over the past six months, according to the Department of Labor. The unemployment rate rose for the ninth straight month in June, climbing to 9.5 percent and hitting a 26-year high.

US News

Thursday, July 9, 2009
Top Obama Aides: Second Stimulus "Might Eventually Be Needed"
Media outlets are reporting that as rising unemployment continues to take a toll on the economy, some top aides to President Obama think a second economic stimulus package may become necessary. The Financial Times reports "senior administration officials think further stimulus might eventually be needed but they do not want to have this fight now. Both the economics and the politics call for postponing a decision to late this year or early in 2010." The New York Times reports, "For the moment, Mr. Obama and his top economic advisers are fending off calls for more action."

The CBS Evening News reported "since the President signed" the stimulus "into law in February, the nation has lost another two million jobs, pushing unemployment to its highest rate in 25 years." CNN's Situation Room reported, "If the question is, is the $787 billion recovery plan making a difference, Republicans in a House hearing today gave a resounding 'no.'" Fox News' Special Report noted that Administration aides said $57 billion of the stimulus funds have been committed, creating 150,000 jobs, or "$380,000 a job."

The Financial Times reports that "while arguments over the benefits of the stimulus continue to rage, Democrats have shown themselves to be divided." The Hill reports Pennsylvania Gov. Ed Rendell (D) "urged House members to consider another stimulus package just for infrastructure projects in order to produce more jobs."

Fox News
Congress Debates Spending Tens of Billions Left in Bank Bailout Fund
The Treasury Department wants to keep the money at its disposal in case the economy gets worse but fiscal conservatives like Sen. Judd Gregg and Rep. Spencer Bachus want the money kept to pay down the national debt.

As debate grows about a possible second stimulus package for the flagging American economy, at least one legendary investor is giving the idea his guarded approval.

"I think that a second one may well be called for," Warren Buffett, the CEO of Berkshire Hathaway, told "Good Morning America" today. But, he added, "you hope it doesn't get watered down in many ways."

Buffett cautioned that a second stimulus package, like the first, won't be "a panacea," because stimulus packages take time to work. He criticized lawmakers' work on the first stimulus package, which contained $787 billion in spending.

"Our first stimulus bill ... was sort of like taking half a tablet of Viagra and having also a bunch of candy mixed in ... as if everybody was putting in enough for their own constituents," he said. "It doesn't have really quite the wall that might have been anticipated there."

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