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.