Jul 10, 2009
As the unemployment rate in the United States continues to rise, top Obama aides are beginning to think that a second economic stimulus package might become necessary. The unemployment rate has risen to dangerous levels and if it is allowed to continue, joblessness might cripple the economy. However, senior officials “do not want to have this fight now” according to Financial Times reports. This is because of the outcry the previous stimulus received from Washington and even the public.
For practical and economic reasons, decisions about a second bailout are likely to be delayed until the later part of 2009 or the early months of 2010. Right now, Obama and his economic teams are trying to steer clear of talks about more actions.
Ever since the $787 billion recovery program was approved in February, two million more jobs were lost. One question that economic advisers are dreading right now is “Did the $787 billion stimulus package work?” Some sectors might say yes but Republicans will certainly give a resounding “no”. The Fox News reported that the $57 billion already released gave jobs to 150,000 workers.
So was the plan worth it at $380,000 investment for every job? There are still arguments over the exact benefits of the recovery plan. Even the Democrats show big divisions in their stance. What is apparent though is that a lot of independent economic analysts believe that the previous stimulus plan was a very bad idea:
Karl Rowe from the Wall Street Journal reports that Obama had promised a “new wave of innovation, activity, and construction”. He further noted that the president claimed that billions will create four million jobs. Well, it seems that the exact opposite happened. He concludes that “Mr. Obama’s words on fiscal matters are untrustworthy”.
On the other hand, the USA Today has observed that the federal assistance worth billions of dollars was unjustly directed towards Obama counties. States that had supported the President during the election received “overwhelmingly” high amounts of money. They have reaped about twice as much aid per capital compared to states that supported McCain.
Meanwhile, House Minority Leader John Boehner from the Politico made a statement that the President and Vice President lied about the economy. He said that they made a complete “fabrication” when they said they didn’t realize how bad the economy was. It was the greatest lie he heard in all the years he’s been in office, according to him.
- Capitol Hill and the Financial Crisis: A Busy Week
- U.S. Unemployment – Stemming Job Losses without Second Stimulus
- Obama’s First Primetime Speech: A Stimulus Plan
- The Real Unemployment Rate in America
- The Stimulus Plan Outlined: Will it Work the Way They hope?
- Tax Hikes – What It Takes to Plug the US’s Gaping Budget Deficit?
- Obama’s Housing Plan – Stopping the Foreclosure rate
- Bankers Reacting Angrily to Pay Cut
- Labor Market – Finally Some Good News?
- Unemployment News – May Take Years to Recover