Congressional Democrats talk up second economic stimulus package - BloggingStocks

Posted April 8th 2008 10:23AM by Filed under: , , First the good news: Congressional Democrats are talking up the thought of a 2nd financial stimulation bundle to assist leap start the U.S. economy. Now the bad news: Congressional Democrats are talking up the thought of a 2nd financial stimulation bundle to assist leap start the U.S. economy.U.S. House Speaker Nancy Pelosi, D-California, said she would raise the prospect of a 2nd stimulation measure when she and other Congressional leadership ran into with President Shrub this week, Anemic U.S. economySpeaker Pelosi did not supply particulars but said March 2008's "disturbing unemployment numbers" which indicated the nation's economical system lost 80,000 occupations "compels the President to work with United States Congress on a 2nd stimulation bundle to acquire our economic system back on track, do jobs, and velocity aid to households struggling to make ends meet," On Monday, the Shrub Administration said it was too soon to speak about the demand for a 2nd economic stimulation bundle because the first 1 had not been fully implemented yet, Political Analysis: It sounds like the first fusillade in the 2nd financial stimulation bundle debate. Congressional Republicans would wish to see this issue quickly go a non-starter, owed to the increased societal disbursement a possible stimulation measure would contain. Three calendar months ago, a 2nd stimulation bundle would have got seemed far-fetched. Today it's a long-shot: President Shrub would probably blackball the bill, and the Dems don't have got the ballots to overrule it. However, three calendar months from now. If U.S. economical statuses go on to deteriorate, electoral pressure level may be so great on incumbent Congressional Republicans that they may have got to back up a 2nd package, and fourth estate President Shrub to subscribe it. Economic Analysis: There's more than adequate work that demands to be done in the United States (infrastructure, renewable energy, school/hospital construction, among other projects) to warrant a 2nd financial stimulation package. Further, the bundle would incorporate the further advantage of creating many living-wage occupations primarily in the 50 states, not overseas. That said, the factor that's most likely to find the fate of 'fiscal stim 2' volition undoubtedly be the U.S. economic system itself. If the recession is shallow, no stimulation will be needed. If it isn't, the state may have got no other pick but to supply further financial stimulus. Hence, a 2nd financial bundle would be bitter-sweet: it could supply stimulus, but the economical slack required to go through it would be something no American would desire to see.