dcsimg
Blog
December 18th, 2008

Obama Stimulus Plan: Keep it Under a Trillion

by

 

President-elect Barack Obama and his economic team have been crafting an expansive — and costly — economic- stimulus package for Congress that is slated to be his first major act as President. According to the Wall Street Journal, Obama’s transition team gauges the price tag of the stimulus package to be between $675 billion and $775 billion over two years. Other claims report the program could reach $850 billion. But fear not, insiders have assured the Journal they are doing their best to keep the stimulus under $1 trillion (for “that could carry political consequences”).

In defense of the possible price tag:

“The biggest fear is that people will do too little,” said one Democratic leadership aide, “like a start-up that fails because it didn’t do enough.”

Obama’s advisers and Congressional aides are pushing to have a draft ready for Congress by the time they return on January 6, so there may be enough time to push the legislation through the House and Senate before Inauguration Day:

Even before the details are known, a coalition of liberal groups and labor unions on Thursday announced a major campaign to get the package passed before Inauguration Day, arguing that the new president should not have to expend political capital to rescue the economy left behind by his predecessor.

The sheer size of such a stimulus has many grimacing at the amount of “pork” that could be buried in the expansive package:

But, in pursuing the largest fiscal stimulus since the Depression, Democrats are likely to add many more categories, legislative aides say.

Share and Enjoy:
  • email
  • Print
  • RSS
  • Add to favorites
  • Yahoo! Bookmarks
  • Facebook
  • Twitter
  • Technorati
  • Digg
  • del.icio.us
  • Google Bookmarks
  • StumbleUpon
  • Yahoo! Buzz
  • Mixx
  • BlinkList
  • Live
  • Reddit

2 Responses to “Obama Stimulus Plan: Keep it Under a Trillion”

  1. David Dzidzikashvili Says: January 30th, 2009 at 8:26 pm

    Obama administration needs to realize that in several months economic crisis and soaring deficit will be solely his administration’s and his party’s problem, so for any previous or future mistakes he’ll have to take the blame. Two-three months from now nobody will remember Bush’s policies and the Democrats have to be more careful on the long-term effects of massive spending. If the new stimulus fails, just like the past one, then this will balloon into Obama’s first political problem. We have to also realize, that on the long-term we won’t be able to afford more bailouts and there has to be alternative solutions, since we are passing the trillion Dollar deficit boundary. Printing more money can be utilized as short-term tool, but on the long run it will devastate economy. Something needs to be done immediately, but more regulation & spending does not seem to be a logical answer, we need another alternative solution. Maybe we should take pure libertarian approach and let the free market decide who wins or loses? This will cause social unrest and chaos, so as a society we can not afford this option either. Maybe we’ve killed the goose that laid eggs for us?

  2. Tim Manni Says: February 2nd, 2009 at 10:44 am

    David,

    Thanks for your comment. I agree that in a few months voters will have forgotten about the old president and past mistakes. All responsibility and accountability, past and present, falls onto the new man in charge.

    You raised another good point: when do we reach the crossroads of having spent so much, that we can’t afford anymore bailouts or stimulus packages? This is just another link in the long chain of scenarios that is out of consumers’ control. I’ll tell you what, the stark divide in the House vote scares me. Political affiliations aside, a legislation that gets ZERO support from one side has to be flawed…There needs to be some compromise of how to achieve the common goal.

    Thanks, and always good to read your comments,
    Tim

Leave a Comment

Receive Updates via Email

Delivered by FeedBurner

About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

Our bloggers:

Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

Connect With Us

  • rss feed icon
  • facebook icon
  • twitter icon

Compare Lowest Mortgage Rates

$