What Obama’s Stimulus Could Teach Congress About Big Bailouts

The last time Washington debated how much stimulus to inject into a moribund economy, the mantra inside the White House was: The more, the better. It was 2009, the nation was reeling from the mortgage meltdown and President Barack Obama’s top economic adviser, Lawrence Summers—a physical as well as intellectual heavyweight—kept telling colleagues that worrying the government would spend too much money was like worrying he would lose too many pounds.

Nevertheless, stimulus fatigue seems to be spreading on Capitol Hill, especially among Republicans, and negotiations over the next package seem to be going nowhere fast.

Meanwhile, if there are rifts over the details among Republicans, there are chasms between Republicans and Democrats. Republicans want to scale back the just-expired $600-a-month expansion in unemployment benefits that Democrats inserted into this spring’s CARES Act, while Democrats oppose liability protections for businesses that Senate Majority Leader Mitch McConnell has declared a prerequisite to any deal.

“There’s an incredible temptation to say: ‘OK, we did some stimulus, things seem to be getting better, let’s move on,’” says Jared Bernstein, an Obama White House economist who is now advising Joe Biden’s campaign. “But as we saw in 2009, it’s incredibly misguided.”his aide Jason Furman met for coffee with the left-wing gadfly James Galbraith, one of 387 economists who had signed a letter urging Congress to move “quickly and decisively” on a $400 billion stimulus.

Fiscal stimulus does increase budget deficits, and there was some concern inside Obamaworld, especially from budget director Peter Orszag, that too much deficit spending by a Democratic president and a Democratic-controlled Congress would send a dangerous signal to markets about Democratic profligacy. But depressions that ravage household incomes, crush business profits and scuttle tax revenues are much worse for budget deficits.

In retrospect, Bernstein thinks he and his colleagues may have overemphasized the statistical evidence that the worst of the cataclysm was over, while underemphasizing the desperate need to continue to support struggling families and businesses. The recovery was real, and it would continue throughout Obama’s presidency and well into Trump’s, but by historical standards it was somewhat tepid.

As Summers said, the virus has created an even deeper crater than the Obama team had to try to fill. When Obama took office, his team believed America faced a $1.8 trillion “output gap” between its pre-crisis and post-crisis trajectories, and the Recovery Act filled less than half of it. Bernstein sent me nonpartisan Congressional Budget Office projections suggesting that even after the initial coronavirus stimulus, America now faces a staggering $7.

Because he increased regulations and taxes instead of cutting them.

remember how Republicans feigned concern for deficit and kept Obama stimulus smaller? Didn’t want speedy recovery then with Dem prez and they don’t want to avoid harsh downturn now with Dem headed to White House Their stimulus reluctance proves they see blue wave on the horizon

“Republicans were full of shit about austerity then as they are now. They only want to bust the deficit with money to big donors.” You’re welcome!

For educated people the GOP really is stupid, they keep trying to fit that square peg in that round hole. Change the path of the virus, help the people through the Pandemic with stimulus and the jobs come back. That lame ass Heals Act doesn't cut it...

Obama's bailout was for big banks n GM Nothing for homeowners

Every 6 to 12 months, the Anti-Obama Hit Cell within Politico strikes again like clock work. USA can bet on it. BTW Obama tripled the DOW and saved the USA and World's Economy. CAN YOU PRINT THE TRUMP DEBT is at $26 Trillion and counting?

Blame the GOP!

This article is fucking gross. It reeks of partisan, statist ideology.

this headline overlooks the fact that every member of the GOP opposed any Obama stimulus despite the horrible recession. remember when they cried how we wre turning into Greece?

Australia went fast and hard after the GFC and one of the few countries to avoid a recession.

Obama catered to coastal elite and China, while our middle class and inner cities eroded.

Slowest recovery since world war II during the 8 yrs of the failing Obama/Biden regime!

Maybe they could have thought about this with the first $3.6 Trillion they just spent?

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Congress Approves Defense Relief Funding For Americans To Receive Stimulus Aircraft CarrierWASHINGTON—In an effort to ensure that the nation’s armament needs are met during this tumultuous time, Congress reportedly approved defense relief funding Monday for every American to receive a stimulus aircraft carrier. “Starting this week, every American making under $75,000 will be sent a 100,000-ton Nimitz-class aircraft carrier to make certain they are taken care of when it comes to their naval arsenal,” said Senate Majority Leader Mitch McConnell, explaining how the nuclear-powered warships, each of which will be personally signed by President Donald Trump, will serve as a helping hand to the millions of families currently vulnerable to aquatic attacks. “We are proud to say that the bill was passed unanimously by both houses, as this infusion of warships will get the arms industries pumping again and put us on the path to stability. Although we are currently planning on a one-time delivery of these 1,000-foot seagoing airbases to help Americans weather this current storm, we are also leaving open the possibility of providing a second stimulus aircraft carrier down the line.” McConnell added that should Americans need to pay rent, they can always sell their aircraft carriers to the Saudi government. Well at least they are not giving them to police departments. but do i have to buy the planes myself? Built in Iran?
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U.S. Congress in position to spend big on coronavirus relief, Fed official saysThe U.S. Congress is in position to spend big on coronavirus relief efforts because the nation's budget gap can be financed without relying on foreign borrowing, given how much Americans are saving, a top Federal Reserve official said on Sunday. They've always been in 'position.' The question is are they willing to invest back in the tax-payer. So far, the answer has been 'no.' ubscribe to The Barbershop, a podcast about racism: Really. Tell congress to give up 25% of their pay and maybe they will feel a pinch of what 30 million Americans are going through pass the 600.00 a week benefit..stop playing with people's livelihood.. Kneel, Cashncarry.
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These Two Key Issues Are Stalling More Stimulus ChecksThese 2 key issues are stalling more stimulus checks: How about Congress doesnt get paid till they figure it out Look like a couple bank robbers 1 key issue “REPUBLICANS”
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