Free Markets, Free People


White House Thinks Porkapalooza (Stimulus) Wasn’t Enough

Paul Krugman has been stumping for a “2nd stimulus” for months. Robert Reich says we should spend like drunken sailors until the good times roll again. And apparently the White House is open to doing exactly that:

White House senior adviser Valerie Jarrett was adamant on Sunday, when asked if President Obama was considering a so-called second stimulus to deal with the rising unemployment rate. “I think it’s too soon. It’s premature to say, ‘Is a second stimulus needed?’ ” she told David Gregory, the host of NBC’s Meet the Press.

But a moment later she said the White House was already looking at tax credits and other measures to further stimulate the economy. “There are a range of suggestions that are being considered right now by his economic team, and we’ll see what we come forward with,” she added.

On its face, the two comments sounded like a contradiction. But at the White House, there is no confusion. More stimulus is coming, but it just won’t be called stimulus.

Because the former porkladen spending bill filled to the rafters with earmarks has given “stimulus” a bad name. However there’s another reason which is much more political. If they call the second raft of spending “stimulus” it is tantamount to admitting the first “stimulus” didn’t work. And the polls tell them that a second stimulus would be deeply unpopular.

So how will this work?

[T]he new stimulus efforts, which are still under discussion, are unlikely to be packaged into a single bill, which would be politically unpopular. An August Gallup poll, for instance, found that 65% of Americans opposed a “second stimulus” and 51% thought that the Federal Government “should spend less” than it is currently spending on stimulus. And that opposition is likely to grow after the announcement on Oct. 16 that the federal deficit for the fiscal year that just ended hit $1.4 trillion, which, at almost 10% of the total economy, represents the largest share since the end of World War II.

In fact, what you’ll probably see is various “stimulus” devices hidden in other bills as they make their way through Congress. They’ll most likely be in bills, such as the Defense Appropriations Spending Bill in which Democrats hung the “hate speech” law, that Republicans will find difficult to oppose.

More money we can’t afford, more deficit, more debt.

I thought this was all about change. Seems like business as usual, and frankly, the same business that got us into the shape we’re in now.

~McQ

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6 Responses to White House Thinks Porkapalooza (Stimulus) Wasn’t Enough

  • Looks more and more like the “blame FoxNews” strategy is going forward, since the best efforts of “The Won” just aren’t good enough.

  • Great idea! Because the best way to get out of debt is to spend even more money!!!

    And maybe the White House can promise that the next round of sti–… um, of… uh… well, the next round of sooper-dooper-double-plus-good government programs will keep unemployment from going about 25%.

    Can anybody recommend a good Chinese language course? ‘cuz I think we’re all gonna need it before too long.

  • Welcome to the new hopey & changey transparency. Where spending bills are camouflaged in unrelated legislation, and the square peg of health care reform is rammed through the round hole of congress via a budget-related-only procedure. And where the EU inks a trade deal with South Korea that should have been ours, and other trade negotiations languish. And where we engage in diplomacy with Sudan, Iran, North Korea, and Russia (and get nothing), and vilify our allies like Israel and Honduras. And where, after 9 months of an Obama administration, Bush is still the bad guy and Fox News is a conservative tool.

    I feel as though any minute now I’ll turn my head and see the Red Queen.

  • For a woman who could not manage low income housing in Chicago, where she received millions of taxpayer dollars to manage our economy is ludicrous.
    Senator Obummer also was responsible since they were in his district on the south side of Chicago.
    These buildings literally look like they are out of a war zone. That’s was she wanted the Olympics so she could make more millions.
    These thugs are not working to anyone but themselves>

  • Remember during the Clinton years when a guy at a town hall meeting asked Bubba if he could find one example of a country that spent it’s way into prosperity? At least Clinton admitted that there were none.

    This bunch actually believe that it is possible.