Wednesday, July 08, 2020
Hawai'i Free Press

Current Articles | Archives

Wednesday, July 08, 2009
Democrats begin Trillion-dollar push for second "stimulus"
By Heritage Foundation @ 8:58 AM :: 3651 Views :: National News, Ethics

Celebrating his first 100 days in office, President Barack Obama told the American people: “One hundred days ago, in the midst of the worst economic crisis in half a century, we passed the most sweeping economic recovery act in history…One hundred days later, we are already seeing results.”

And he’s right, we are. Unemployment has risen to 9.5%, stocks fell to their lowest level in 10 weeks on Tuesday, and consumer credit delinquencies have hit a record high.

Responding to the obvious failure of the Obama administration’s $787 billion stimulus package, some liberals in the House and Senate are calling for a second (really the third when you count President Bush’s 2008 effort) stimulus. How big of a second stimulus? Center for Economic and Policy Research co-director Dean Baker told Politico: “To my mind it’s pretty obvious we need another stimulus package, probably a lot bigger than the last one.”

To be fair, the Obama administration itself is not yet ready to admit their first $787 billion stimulus package failed. Both Vice President Joe Biden and Obama Council of Economic Advisers member Austan Goolsbee recently said it was premature to discuss crafting another stimulus. But outside adviser to President Obama Laura Tyson told an audience in Singapore yesterday that the stimulus package was indeed “a bit too small” and that the administration should consider a second effort. According to Bloomberg, Tyson then stressed “The U.S. needs to communicate its determination to reduce the annual shortfall once the economy recovers.” Unfortunately the Obama administration is sending no such credible signals.

Not that Obama hasn’t tried. First he held a “fiscal responsibility summit” the week after signing the largest single-year increase in domestic federal spending since World War II. Then he ordered his cabinet to identify $100 million in budget cuts, and proposed his own $17 billion in program terminations and reductions. He has even promised to try and resurrect the completely ineffectual PAYGO rules, but made it clear they would not apply to his own health care spending. Informed observers have not bought any of these shenanigans. The numbers don’t lie, and here is the story they tell:

Ignoring Obama’s lofty rhetoric and focusing on the hard numbers, investors are demanding higher interest rates to soak up the tremendous flows of debt coming out of the Treasury. This will mean higher interest rates for consumer loans, mortgage loans, business loans, etc. The debt-based Obama economic stimulus plan has become a major drag on economic recovery, just as expected. Looking at Obama’s housing rescue effort the Washington Post reports today: “More recently, long-term interest rates have increased as generalized investor panic has given way to a more specific worry: that the huge U.S. budget deficit is unsustainable and may set off high inflation. In other words, rising deficits are canceling out at least some of the Fed’s efforts to keep mortgages cheap.”

The President and the Congress must realize that world investors will not be swayed by new budget rules or other posturing. They want to see the economy strengthen while the deficit comes down now, and fast. The solution is to set aside all the new spending proposals and start cutting spending fast. Otherwise we’re going to have double digit unemployment for a long time to come.

---30---


QUICK HITS

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT