Friday, February 13

What's in the News (Yesterday & Today)

Congress Readies Final Vote on $790 billion Stimulus Plan
After a 24-hour delay caused by late, lingering controversy, Democratic congressional leaders say President Barack Obama's economic stimulus bill -- a massive, $790 billion package of tax cuts and federal spending -- is on track for a Friday vote in the House.

The Senate could vote on the bill later in the day or over the weekend, sending the measure to Obama's desk and awarding him a crucial victory. He says the measure will create or save 3.5 million jobs, while critics contend the bill is filled with wasteful spending and provisions that won't boost the economy. Continue reading here


Gregg Withdraws as Commerce Secretary Nominee
Republican Sen. Judd Gregg of New Hampshire abruptly withdrew his nomination as commerce secretary Thursday, citing "irresolvable conflicts" with President Barack Obama's handling of the economic stimulus and 2010 census.

"We are functioning from a different set of views on many critical items of policy," Gregg said in a statement released by his Senate office. Continue reading here


Will the Stimulus actually Stimulate? Economists Say No
The compromise economic stimulus plan agreed to by negotiators from the House of Representatives and the Senate is short on incentives to get consumers spending again and long on social goals that won't stimulate economic activity, according to a range of respected economists.

"I think (doing) nothing would have been better," said Ed Yardeni, an investment analyst who's usually an optimist, in an interview with McClatchy. He argued that the plan fails to provide the right incentives to spur spending. Continue reading here

6 comments:

happyathome said...

A withdrawal that was actaully based on views and not on back tax owed, what a novelty.
The Today Show pointed out some of the key items in the package, one being an $800 check for families, something that will not stimulate the economy. Better off in the pocket BEFORE you give it to the govenrment.

Jeff said...

I agree with the above comment regarding the tax cut. Tax cuts are not an effective way to stimulate the economy. I think the figure is something like 60 cents on the dollar in terms of economic impact. Government spending, on the other hand, has a multiplier of something like 1.8. Why, then, did the Democrats compromise with the Republicans to make tax cuts such a large portion of the stimulus bill? If anything, we should be spending more and giving less tax cuts. I still don't understand the Republican argument for how tax cuts stimulate better than spending.

Stephan said...

I find the withdrawal of Gregg interesting. I heard Obama speaking about it and how Gregg sought the position and asked to be a part of the administration.

This seems far-fetched to me. I doubt anyone would ask to be part of an administration, especially when the seat you fill as a Senator is very important.

Natalie said...

Jeff, where are you getting your facts?

Jeff said...

The CBO. I'll see if I can get a link.

Jeff said...

Table 5: http://www.cbo.gov/ftpdocs/99xx/doc9967/01-27-StateofEconomy_Testimony.pdf

 

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