–updated–
I’d like to smack all those conservative Democrats up side the head with the federal check book. What were they thinking and why did Obama let them thwart what could have made the stimulus do the work it was supposed to do? However, Obama says he’s happy with it, even if Sen. Whitehouse believes another one is needed, while Sen. McCaskill, Obama’s super fan, says it’s a “non starter.” Floating what looks inevitable isn’t working so well, now is it? I’d believe in it if I didn’t think we’d just get part two of what hasn’t worked fast enough in the first place.
Steny’s hinting we may need a second stimulus, while Harry Reid would rather walk to into a casino and bet the house rather than propose one.
The economists have a different opinion:
“To my mind it’s pretty obvious we need another stimulus package, probably a lot bigger than the last one,” said Dean Baker, co-director of the left-leaning Center for Economic and Policy Research. “It’s horrible that you have all of these people suffering because you have people in Washington with rocks in their head.”
Paul Krugman concurs.
Laura Tyson, one of the Clinton’s econ gurus, said all along the stimulus was too small and she’s still saying it. Earlier this year I heard Tyson speak, with her feeling we can afford a $10 trillion short fall, if it’s only in the short run.
“The money is just really starting to come out in more significant amounts now,” Tyson said. “The stimulus is performing close to expectations but not in timing.”
Frankly, looking at this from the political analysis side since I’m not an economist, all I see are danger signs ahead. If Democrats wade into the stimulus II water we hand Republicans all sorts of talking points for 2010, which since the economy isn’t rebounding as hoped is beginning to set up in places like Ohio as nothing good. Seriously, have you seen these numbers? However, considering I never believed the first stimulus was put together in a way that would provide what was needed, the talk of a second stimulus is totally understandable. But the politics for Democrats and Obama are treacherous if they do.
Republicans are looking for their issue and a second stimulus on top of one that’s working too slowly will bring out the econ hawks. A second stimulus will put them over the top.
It will also likely give people fodder for why health care will be too expensive.
Bad set up. (…unless you’re Mitt Romney.)
Duck! Here comes the punch line.
In a research note that’s been making the rounds of economics blogs this week, Berner declares that “America’s long-awaited fiscal train wreck is now under way.”
By “train wreck,” he means out-of-control federal budget deficits that he’s sure will finally drag the economy under — as if we weren’t already feeling badly enough about its shaky state.
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