March 12, 2009

Is there another stimulus package in the works?

Posted: 07:39 AM ET

House Democratic aides denied Wednesday that work is already underway on a second stimulus package.

The pushback came a day after House Speaker Nancy Pelosi suggested more stimulus spending might be needed, and the top Democrat on the Appropriations Committee said he had already instructed his staff to begin working on a bill.

But multiple Democratic aides told CNN another stimulus plan is not in the works, and that Democratic leaders believe they need time to assess whether the first recovery package is effective before taking up another bill.

One leadership aide said House Appropriations Chairman David Obey of Wisconsin got ahead of himself when he told CNN Tuesday evening that his committee was considering another stimulus package, though he had cautioned there was no timeline for moving it.

This aide said House Democratic leaders are letting the current stimulus play out, and that it will be "at least several months, as we get toward the end of the year and see where we are" before they would consider another stimulus bill.


Filed under: Congress • Economy

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Michael C. McHugh   March 12th, 2009 8:14 am ET

As a Keynesian, I don't mind spending lots of money to stimulate the economy. I can prove that it works because the massive deficit spending in World War II ended the Great Depression in America–and of course we were on the winning side, not bombed or occupied like so many other countries.

I think this time they should seriously consider letting the Federal reserve transfer money directly to the state treasuries for education, public services, medical care and so on.

Let's put even more stimulus funds into public works projects or new cutting edge industries, maybe set up a national bank for this purpose–an infrastructure and investment bank. We could also start building thousands of miles of high speed rail lines, from coast to coast, from Canada to Mexico. That's a public works project that could be kept going for years.

Terry, TX   March 12th, 2009 10:44 am ET

If the leak is out about a second is not because we need one.. it's because they haven't done one and want more of our taxpayers money.

What's the play line here...put all the pork in now bill after bill...get the pay for play in right now for ACORN, La Raza, unions, contributors, lobbyists, std’s, pig smell, etc....We will address the job/financial crisis later..No ....go back and get out of the other bills if you missed the can start with the ones listed....and redistribute that wealth to the any future stimulus....

What are you saying...then if we really need one....we will do one ....why because Pork reform has been promised...again...but we will have to do it because it's a crisis, no time to read it ...has to done by Friday and signed by Monday....

Hey...we have been down that road before....several times since January.. This is the reason I don't have heroes as political parties or politicians.

Terry, TX   March 12th, 2009 12:05 pm ET

Michael to pull quote from a critic of this "Theory" not an accurate science....... "some economists and writers have tended to equate Keynesianism with socialism or even outright Communism." When you are applying it in the "vulgar Keynesianism" format...of course. ... You have to count on the same party staying in charge over and over, subsidizing favored areas of the population by using unwarranted political agendas...expansion thru the monetary and social system even when it is not needed.

A good example...and we have many in the world... Chavez in Venezuela... You get in power, promising the world, free this free won't have to pay for anything... going for those votes who are waiting for a hero...get in take over or shut down media who verbally oppose you, nationalize (take over) companies like banks, oil, cement...etc ... education and public services taken over for indoctrination purposes. Now he wants to change the constitution so he can be there Castro did.

Michael...the one idea of the railroad is suggestion get the money from all the pork that was just signed on...we can't do anymore as taxpayers...those companies that need to fail should initiatives need to wait until the country is healthy.

justice for all   March 12th, 2009 2:04 pm ET

Yes, to bail out Madoff
Madoff Investment Securities, gave $372,100 in campaign contributions beginning in 1991, with 89 percent going to Democrats
Madoff appears to have contributed more than $100,000 to the Democratic Senatorial Campaign Committee while Schumer was chairman, including a $25,000 contribution in 2005
Sen. Charles Schumer, D-N.Y.: $2,000 in 2002, $6,000 in 2004 and another $2,000 in 1998;
Sen. Hillary Rodham Clinton, D-N.Y.: $1,000 in 2000
House Majority Leader Richard Gephardt, D-Mo, presidential campaign: $2,000 in 2003;
Rep. Charles Rangel, D-N.Y.: $1,000 in 2001; $1,000 in 1998;
Sen. Frank Lautenberg, D-N.J.: $10,200 in 2007; $1,000 in 2004;
Gov. Jon Corzine, D-N.J.: $1,000 in 1999.

Joe G. (Illinois)   March 12th, 2009 3:30 pm ET

Government Money is Free Money because as the name says “It comes from the Government.” Raising taxes to small business, and using baseball bats to cripple the knees of the entrepreneurs all over the country means being equal and fair to the historical poor of this country.. Also more money needs to be spent in schools so that grades be equal among peers regardless of race, nationality or family income or moral values. About the Stimulus.. Is there still a debate.. If it's free money.. Let's all live large.. Who cares about generational debt?

Terry, TX   March 12th, 2009 5:05 pm ET

The Obama Photo-Op right now going on with his speech to businesses. I am recording it... will have to see it twice to remove the bull and absorb the meat of it. So far...the jest of it is....he is talking about it now with businesses be grateful and slobber over him....I already have a plan for this up coming budget...I am going to do it my can just trickle the tax down to the consumer....but I can at least say I invited you over to talk about it.

The bottom line is the conversation is why we need health and education tied up right now in the banking crisis and a hand-picked audience. It appears to be a love fest.
That's my impression so far. That's it.

JIM CARROLL INTERNET FREE PRESS   March 12th, 2009 5:22 pm ET


HOW CAN THE INTELLIGENTSIA OF AMERICA BE SO BLINDED that they cannot see that the Federal Government must have a money system that can create and maintain an equivalent ratio of money to the goods and services that its peoples’ hands and minds can produce? Nature’s Basic Law of Economics states: All goods and services flow from the action of people resources on natural resources— Money is the medium of exchange which should be equal to the value of the goods and services—and not to a gold standard or some other insane idea.
The question should be: are there people resources and natural resources available for both? Money can be created (Article 1, section 8, of the Constitution). When are we going to wake up?
We don’t have to be a NATION OF ECONOMICS IDIOTS.
Give each state one billion dollars for each member of Congress– which would distribute the money equally among the states. States could keep all of their employees, and they could add a few more. They could create millions of new jobs by getting a lot of needed projects going. The Federal Government has the Constitutional authority to create new money. It doesn’t need to borrow it from China or anyone else. Giving 535 billion dollars to the states makes more sense than giving two or three trillion dollars to the banks.
TAX CUTS FOR THE RICH AND FLOAT DRIED UP MONEY SUPPLY When the rich get tax cuts, they don’t put it under their mattress; but what they do with it has the same effect. They store it as bytes on computer chips. They don’t spend the money that’s needed to moves goods and services.
The efficiency of the clearing houses for financial institutions has dried up trillions of dollars in float. You can’t beat a check to the bank any more. Debit cards, paying bills on line, buying on the internet with Pay Pal and the many other ways that money can instantly be taken out of bank accounts has dried up the money supply. When you could beat a local check to the bank and when it took an out of town check ten days to clear the bank, there were billions of dollars that could be spent by the depositors and billions that could be loaned out by the banks. WHERE ARE THE ECONOMISTS?

Dodie from CA   March 13th, 2009 12:59 am ET

Nancy Pelosi suggested more stimulus spending might be needed,

JUST GREAT!! So she can use that money to again fly to Italy with her husband and stay at 5 star hotels, eat at the most expensive restaurants on taxpayers money! I, for one, would like to vote her out of office.


Nancy Pelosi: I hope the Obama administration makes you pay for that trip!!! You are as bad as the Bush Administration. Good Grief!

Dave of Detroit   March 13th, 2009 1:02 am ET

Stimulus Package? I will say this much for Dick Cheney, he knew how to get his company Haliburton out of impending Bankruptcy-Start a war and get exclusive no-bid Defense Contracts. The down side is that when he started Haliburton was at $11.43 a share and GM was running close to $70.00..After 8 years, GM is facing Bankruptcy and Haliburton is above $40.00 a share and recession proof as it is plugged into the Federal Treasury. This does show an interesting way to bring back our economy and Auto Industry. Give the Auto Industry large orders for vehicles instead of loans-GM makes the HUM-Vee, Daimler makes the Jeep and Ford has all kind of Utility Vehicles and my understanding is that the Pentagon needs a whole lot of replacement vehicles. Then we have the Federal Government's fleets of cars-no doubt that they could be updated as well-How about it Obama Administration? Stop making loans to keep a bad situation going and start placing orders that will get the Auto Companies and Assembly Lines going and get people back to work IMMEDIATELY!

Christopher Ueckert   March 13th, 2009 3:55 am ET

I believe, that another stimulus package would be more on long the lines of repeating what happen to the Soviet Union and the Bread lines. Remember always, people must be the ones to choose how to make thier own capital. That is the basis of the founding fathers reasons why they originaly in 1775 created the articles of confederation, to have a small, not national goverment. The larger the goverment the more influece it has in the issues that affect the governed day by day. Yet, in 1787 'they' finally realized that there was a need for a Federall or elected potoletarit to maintain some sort of balance in times of crisis. Yet, the more power that is given to those who govern when then scale tips more towards the protoletarit in charge and those who are his support, this of course leads to the socialist therory. Now, truely socialism has never been tested and proven althought still tested. The Bohlshveicks developed a form of it and communism rose and fell. As we speak the Chinesse have a socialist type goverment, yet the market is somewhat free so then it isn't a true socialist goverment. So we must always watch how much money is being given out and to who, for who truelty are the ones who hold the 'buck'; and where does to finally stop so we can begin again.

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