Obama Adviser Says U.S. Should Mull Second Stimulus

July 7 (Bloomberg) -- The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the first plan was “a bit too small,” said Laura Tyson, an adviser to President Barack Obama.

The current plan “will have a positive effect, but the real economy is a sicker patient,” Tyson, stressing that she was speaking for herself and not the administration, said in a speech in Singapore today. The $787 billion package will have a bigger effect in the third and fourth quarters, she said.

Her comments contrast with remarks made two days ago by Vice President Joe Biden and fellow Obama adviser Austan Goolsbee, who said it was premature to discuss crafting another stimulus because the current measures have yet to fully take effect. The government is facing criticism that the first package was rolled out too slowly and failed to stop unemployment from soaring to the highest in almost 26 years.

Obama said last month that a second package isn’t needed yet, though he expects the jobless rate will exceed 10 percent this year. When Obama signed the first stimulus bill in February, his chief economic advisers forecast it would help hold the rate below 8 percent.

Unemployment increased to 9.5 percent in June, the highest since August 1983. The economy has lost about 6.5 million jobs since December 2007.

http://www.bloomberg.com/apps/news?pid=20601087&sid=awY5BBnLm.KE

 

Some mickey mouse sh*t goin on. This time they will focus eh? More pork inc

I bet this seals a loss in next Congressional and Pres elections. 1) They are blowin money left and right and it is having no effect. 2) This is an admission the first package was a disaster.

 

How many bank robbers run BACK into the bank, and say "Gimme More"? All this money is going right out the back door, into the trunk of somebody's car. The people in this country are dumb as a box of rocks.

But I like poetic flair: "discuss crafting another stimulus". It makes it sound like they are a bunch of 18th century artisans using quill pens and parchment paper. How quaint, relaxing and bucolic.

 

In my humble opinion, gas prices need to remain in check. If they're going to spend more of our money why don't they help pay for gas at the pump? Guarantee to keep the price below $2 a gallon. This will keep the auto companies selling, get manufacturing going again, and keep extra $$ in our pockets to spend and stimulate other industries.

On top of this, it's not as easy for an oil company to screw the govt. as it is for them to screw the general public.

This will inturn buy time for the automakers to adhere to new efficiency mandates while keeping their revenue streams.

...businesses will have more money, people will go back to work... one domino, two dominos, three dominos, four...