After the first few stimulus plans have been such abysmal failures, the some in the Obama administration and congress are now mulling over yet another stimulus package, one which would dwarf the first $787 billion Obama passed a few months ago.
July 7 (Bloomberg) — The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small,” said Laura Tyson, an adviser to President Barack Obama.
The current plan “will have a positive effect, but the real economy is a sicker patient,” Tyson said in a speech in Singapore today. The package will have a more pronounced impact in the third and fourth quarters, she added, stressing that she was speaking for herself and not the administration.
Tyson’s comments contrast with remarks made two days ago by Vice President Joe Biden and fellow Obama adviser Austan Goolsbee, who said it was premature to discuss crafting another stimulus because the current measures have yet to fully take effect. The government is facing criticism that the first package was rolled out too slowly and failed to stop unemployment from soaring to the highest in almost 26 years.
Obama said last month that a second package isn’t needed yet, though he expects the jobless rate will exceed 10 percent this year. When Obama signed the first stimulus bill in February, his chief economic advisers forecast it would help hold the rate below 8 percent.
Unemployment increased to 9.5 percent in June, the highest since August 1983. The world’s largest economy has lost about 6.5 million jobs since December 2007.
So Obama isn’t opposed to another, he just doesn’t believe people will stomach it politically right now after we’ve watched billions of dollars wasted on liberal pet projects. Plus, he knows the first one isn’t even wasted yet so there is no need to begin wasting more until we’ve thoroughly blown the first $700 billion. Wasting taxpayer money is an art form Washington has perfected over time.
Then here’s friendly Uncle Joe once again inspiring confidence in this administration’s ability to read economic data:
That’s pretty peachy keen, especially considering they swore up and down that the first Obama stimulus would keep unemployment below 8%, which it has not, nor has it created or “saved” a single job as they often claim.
At least Biden now said that it’s OK to blame the Obama administration for its failures instead of Bush, I’m glad we were given permission to blame those responsible.
America already has stimulus fatigue and the higher and higher we see the national debt and deficit spiral with not a shred of result, the less likely Americans will be to continue trusting the incompetent economic team in the White House.