‘Cause the first one worked so well…
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 outside adviser to President Barack Obama.
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.
Not working out as expected? Or…is it? Given the “crisis”, we are getting cap and trade and socialization of health care.
I have a thought, maybe it wasn’t that the “stimulus” was rolled out too late, it was that it happened in the first place. Maybe printing hundreds of billions of dollars, borrowing and spending hundreds of billions, running near $2 trillion deficits, nationalization of the auto and financial industries, and the looming environmental and health schemes, is a path to destruction.
Has anyone considered that it was precisely the “stimulus” that has driven unemployment to its highest level in over two decades?
Looks like the only thing being stimulated is unemployment.
Tyson, 62, later told reporters that the U.S. can afford to pay for a second package, even as the fiscal deficit soars. She said the budget shortfall is “likely to be worse” than the equivalent of 12 percent of gross domestic product that the administration forecast for 2009 and the 8 percent to 9 percent it projected for next year.
The professor at the University of California’s Walter A. Haas School of Business downplayed worries from China and other countries with dollar reserves that the U.S. will let inflation soar as the deficit expands.
“The concern is that the U.S. will have to inflate away its debt. I do not think that is a valid concern,” she said. “The Federal Reserve is not going to let the U.S. government inflate away its debt.”
Oh really? Seen this graph lately?
Oh no, Mrs. Tyson, I do believe the Fed is going to inflate our way out of debt. And seriously, we can “afford” a second package? We couldn’t even afford the first. China, along with the rest of the world, wants nothing to do with the dollar anymore.