It might be called a stimulus bill, but it’s far from stimulating reading. At 1,434 pages, and written in the usual incomprehensible legalese, the stimulus is going to be passed unread by members of Congress. That’s no fault of theirs, blogs Jimmie Bise at the Sundries Shack; to read the bill in time, they would have to average 640.5 words per minute for 13 hours.
“If anyone needs a potty break, they’d better take the bill with them,” Bise writes. Democrats say we need the bill fast, but pushing for a 9am vote seems a little much. “Just know as you’re at work tomorrow," he wrote yesterday, "that the Democrats will be voting to spend about $800 billion dollars without having the foggiest idea what they’ll be spending it all on.”
Friday, February 13, 2009
Feinstein blows our Pakistani cover
Until now, most people assumed that the US conducted its Predator strikes on Taliban and al-Qaeda targets from bases in Afghanistan. Now, however, Senator Dianne Feinstein has exposed a Pakistani partnership on Predator launches that the previous administration tried to keep quiet. Her offhand remark may put the entire program in jeopardy:
A senior U.S. lawmaker said Thursday that unmanned CIA Predator aircraft operating in Pakistan are flown from an airbase inside that country, a revelation likely to embarrass the Pakistani government and complicate its counterterrorism collaboration with the United States.
The disclosure by Sen. Dianne Feinstein (D-Calif.), the chairwoman of the Senate Intelligence Committee, marked the first time a U.S. official had publicly commented on where the Predator aircraft patrolling Pakistan take off and land.
At a hearing, Feinstein expressed surprise at Pakistani opposition to the ongoing campaign of Predator-launched CIA missile strikes against Al Qaeda targets along Pakistan’s northwest border.
“As I understand it, these are flown out of a Pakistani base,” she said of the planes.
Until now, that was a closely guarded secret. The drone attacks are incredibly unpopular among the Pakistani public, and the US didn’t want to undermine the current, democratically-elected government in Islamabad. They wanted to give the Yousef Gilani government deniability on their cooperation with the American military in order to keep our options for attack open.
This isn’t the first time Feinstein has blown a sensitive operation by opening her mouth, either. Californians will recall that Mayor Feinstein called a press conference to discuss the Night Stalker case, a string of violent rapes and murders that terrified the entire state. She divulged previously-confidential information about Richard Ramirez’ shoes and gun — and on hearing it, Ramirez promptly dumped them into the bay on his way out of town, eliminating key evidence in the case.
This exposure will cause much greater damage. The Pakistani public will almost certainly demand an end to these Predator flights, which have been highly successful at decimating terrorist leadership in inaccessible areas of the Pakistani frontier. Without that kind of tactic available, we will have to fall back to more intrusive and potentially less effective overflights from Afghanistan. This could allow our enemies breathing room to rebuild their networks in the region, and put us on a collision course with Islamabad on our efforts to fight them. At the very least, Feinstein has just complicated the diplomatic situation for Barack Obama by an order of magnitude.
A senior U.S. lawmaker said Thursday that unmanned CIA Predator aircraft operating in Pakistan are flown from an airbase inside that country, a revelation likely to embarrass the Pakistani government and complicate its counterterrorism collaboration with the United States.
The disclosure by Sen. Dianne Feinstein (D-Calif.), the chairwoman of the Senate Intelligence Committee, marked the first time a U.S. official had publicly commented on where the Predator aircraft patrolling Pakistan take off and land.
At a hearing, Feinstein expressed surprise at Pakistani opposition to the ongoing campaign of Predator-launched CIA missile strikes against Al Qaeda targets along Pakistan’s northwest border.
“As I understand it, these are flown out of a Pakistani base,” she said of the planes.
Until now, that was a closely guarded secret. The drone attacks are incredibly unpopular among the Pakistani public, and the US didn’t want to undermine the current, democratically-elected government in Islamabad. They wanted to give the Yousef Gilani government deniability on their cooperation with the American military in order to keep our options for attack open.
This isn’t the first time Feinstein has blown a sensitive operation by opening her mouth, either. Californians will recall that Mayor Feinstein called a press conference to discuss the Night Stalker case, a string of violent rapes and murders that terrified the entire state. She divulged previously-confidential information about Richard Ramirez’ shoes and gun — and on hearing it, Ramirez promptly dumped them into the bay on his way out of town, eliminating key evidence in the case.
This exposure will cause much greater damage. The Pakistani public will almost certainly demand an end to these Predator flights, which have been highly successful at decimating terrorist leadership in inaccessible areas of the Pakistani frontier. Without that kind of tactic available, we will have to fall back to more intrusive and potentially less effective overflights from Afghanistan. This could allow our enemies breathing room to rebuild their networks in the region, and put us on a collision course with Islamabad on our efforts to fight them. At the very least, Feinstein has just complicated the diplomatic situation for Barack Obama by an order of magnitude.
A Reckless Approach to Governance
Posted by Ed Feulner (Profile)
Friday, February 13th at 3:15PM EST
10 Comments
For the last 35 years, educators and analysts at The Heritage Foundation have been intimately involved in the nation’s great public policy debates. In all that time, we have never encountered legislation with such far-reaching and revolutionary policy implications as the American Recovery and Reinvestment Act currently before Congress. And never have we seen a bill more cloaked in secrecy or more withdrawn from open public exposure and honest debate.
In addition to being the single most expensive bill ever proposed, this measure calls for a massive expansion of the federal government’s reach into the day-to-day life of virtually every citizen, business and civic organization in the nation. That, in itself, should be the subject of an extensive public conversation and thoughtful debate. Instead, we have seen Congressional leaders schedule snap votes on a 1,434-page bill that no one — repeat, no one — has had a chance to read in its entirety, much less digest and deliberate.
This bill has been advertised as an economic stimulus bill — despite the fact that the Congressional Budget Office estimates it will actually weaken our nation’s long-term economic growth. While the stimulative utility of the bill is, at best, questionable, it would unquestionably rewrite the social contract between the American people and their government. For example:
* The bill reverses the bipartisan and highly successful welfare reforms of 1996 and drastically expands the welfare state. For instance, it will start rewarding states for adding people to their welfare rolls, rather than for helping them find gainful employment. And contrary to long-established practice, it will entitle able-bodied adults without children to receive cash assistance.
* It does extreme violence to the concept of federalism—bailing out states that have spent irresponsibly at the expense of taxpayers in states that have been fiscally prudent.
* It greatly shifts the responsibility and power over health care delivery and decision making from individuals to government. Among other things, it would create a new federal health board to decide which medical services are “effective” in America, paving the way for government effectively to overrule the clinical decisions of private physicians.
* It deliberately censors religious speech and worship on school campuses by prohibiting use of any “stimulus” funds for facilities that are used for sectarian instruction, religious worship, or a school of divinity.
The list goes on. These and similar provisions will mean fundamental changes in our society. In many instances, the bill would establish policies that directly challenge widely held American values.
We are appalled that Congress is even contemplating such profound changes with so little openness and due diligence. In the past, major policy changes in our welfare system, or health care, or trade policies, etc., were always, quite properly, preceded by extensive public conversation and full debate. That is how a democracy should make important decisions.
The failure of Congress and the Administration to allow that debate is damaging to our democracy. Both chambers of Congress suspended their budget rules to push it along. And both the President and the leaders of the House and Senate have violated their solemn promises that the bill would be available for several days of public review prior to voting, so that the American people might have a chance to learn what is in the bill and to make their views known to their elected officials.
This reckless approach to governance can only undermine public faith in our elected officials and our government as a whole. We call on Congress and the Administration to live up to their promises and stated ideals, and give the democratic process a chance to work.
Friday, February 13th at 3:15PM EST
10 Comments
For the last 35 years, educators and analysts at The Heritage Foundation have been intimately involved in the nation’s great public policy debates. In all that time, we have never encountered legislation with such far-reaching and revolutionary policy implications as the American Recovery and Reinvestment Act currently before Congress. And never have we seen a bill more cloaked in secrecy or more withdrawn from open public exposure and honest debate.
In addition to being the single most expensive bill ever proposed, this measure calls for a massive expansion of the federal government’s reach into the day-to-day life of virtually every citizen, business and civic organization in the nation. That, in itself, should be the subject of an extensive public conversation and thoughtful debate. Instead, we have seen Congressional leaders schedule snap votes on a 1,434-page bill that no one — repeat, no one — has had a chance to read in its entirety, much less digest and deliberate.
This bill has been advertised as an economic stimulus bill — despite the fact that the Congressional Budget Office estimates it will actually weaken our nation’s long-term economic growth. While the stimulative utility of the bill is, at best, questionable, it would unquestionably rewrite the social contract between the American people and their government. For example:
* The bill reverses the bipartisan and highly successful welfare reforms of 1996 and drastically expands the welfare state. For instance, it will start rewarding states for adding people to their welfare rolls, rather than for helping them find gainful employment. And contrary to long-established practice, it will entitle able-bodied adults without children to receive cash assistance.
* It does extreme violence to the concept of federalism—bailing out states that have spent irresponsibly at the expense of taxpayers in states that have been fiscally prudent.
* It greatly shifts the responsibility and power over health care delivery and decision making from individuals to government. Among other things, it would create a new federal health board to decide which medical services are “effective” in America, paving the way for government effectively to overrule the clinical decisions of private physicians.
* It deliberately censors religious speech and worship on school campuses by prohibiting use of any “stimulus” funds for facilities that are used for sectarian instruction, religious worship, or a school of divinity.
The list goes on. These and similar provisions will mean fundamental changes in our society. In many instances, the bill would establish policies that directly challenge widely held American values.
We are appalled that Congress is even contemplating such profound changes with so little openness and due diligence. In the past, major policy changes in our welfare system, or health care, or trade policies, etc., were always, quite properly, preceded by extensive public conversation and full debate. That is how a democracy should make important decisions.
The failure of Congress and the Administration to allow that debate is damaging to our democracy. Both chambers of Congress suspended their budget rules to push it along. And both the President and the leaders of the House and Senate have violated their solemn promises that the bill would be available for several days of public review prior to voting, so that the American people might have a chance to learn what is in the bill and to make their views known to their elected officials.
This reckless approach to governance can only undermine public faith in our elected officials and our government as a whole. We call on Congress and the Administration to live up to their promises and stated ideals, and give the democratic process a chance to work.
Caterpillar Employees Reject Obama and his Reckless Spending Package
While visiting Caterpillar headquarters in Peoria, IL, yesterday, President Obama instructed employees of the construction company to tell their representative, Congressman Aaron Schock (R-IL), to support his $800 billion spending package.
On the floor of the House this morning, Schock announced that not one single employee came up to him after Obama’s speech — and that, contrary to the president’s claims, every one of the 1,400 telephone calls to Schock’s office from Caterpillar workers has been in opposition to the “stimulus” bill.
On the floor of the House this morning, Schock announced that not one single employee came up to him after Obama’s speech — and that, contrary to the president’s claims, every one of the 1,400 telephone calls to Schock’s office from Caterpillar workers has been in opposition to the “stimulus” bill.
Borders Bookstore now makes Obama the religion for your children
This is a picture taken at a Borders Bookstore in Dallas, TX.
This is in the children’s section.
SURPRISE! Dems Break Promise: Stimulus Bill to Floor Friday by Connie Hair 02/12/2009
In a press conference Thursday, the House Republican leadership spoke candidly about being kept out of the House-Senate conference on the Obama-Pelosi-Reid so-called “economic stimulus” bill. They confirmed they had not yet seen the text of the bill as of 4 p.m.
Minority Leader John Boehner (R-Ohio) said he was unsure how many Democrats would vote with Republicans again on this bill but that he thought Republicans “may get a few” Democrats to side with them. The fact that the Demos have now broken their promise to have the public able to see the bill for 48 hours may drive more Dems into the Republican camp.
“[I] don’t know, ‘cause they haven’t seen the bill either,” Boehner said.
“The American people have a right to know what’s in this bill,” Rep. Mike Pence (R-Ind) told HUMAN EVENTS after the press conference. “Every member of Congress -- Republicans and Democrats -- voted to post this bill on the internet for 48 hours, 48 hours ago. We’ll see if the Democrats keep their word.”
Actually -- as of 5:15 pm, the Democrats had broken their word. The stimulus bill -- which we still haven’t seen -- will be released late tonight and will be brought up on the House floor at 9 am tomorrow.
The following statement was released by Majority Leader Steny Hoyer at 4:57 p.m.:
"The House is scheduled to meet at 9:00 a.m. tomorrow and is expected to proceed directly to consideration of the American Recovery and Reinvestment conference report. The conference report text will be filed this evening, giving members enough time to review the conference report before voting on it tomorrow afternoon."
Meanwhile, at an earlier presser Thursday, Pelosi -- while talking about legislation regarding school construction funds -- said it was vital to see the language of a bill before making decisions. ReadtheStimulus.org had the following quote:
“With all of this you have to see the language. You said this --- I said that --- I understood it to be this way --- you know, we wanted to see it in writing and when we did that then we were able to go forward."
"Around here language means a lot. Words weigh a ton and one person's understanding of a spoken description might vary from another's. We wanted to see it. And not only just I had to see it, I had to show it to my colleagues and my caucus. We wanted to take all the time that was necessary to make sure it was right."
Congressional members are also exchanging barbs via the popular social network Twitter. Sen. Claire McCaskill (D-Mo.) twittered, "Don't know when we're going to vote. Will the no votes delay vote just because they can? Speed is important. They know that."
House Republican Whip Eric Cantor (R-Va.) twittered back, “Those in favor of speed over commonsense may just be afraid of letting the People know what they are ramming through.”
UPDATE: The Democrats finally made the bill's language available around 11 p.m. Thursday, approximately 10 hours before members meet Friday to consider the bill and 38 hours short of the time promised Americans to review the bill.
Minority Leader John Boehner (R-Ohio) said he was unsure how many Democrats would vote with Republicans again on this bill but that he thought Republicans “may get a few” Democrats to side with them. The fact that the Demos have now broken their promise to have the public able to see the bill for 48 hours may drive more Dems into the Republican camp.
“[I] don’t know, ‘cause they haven’t seen the bill either,” Boehner said.
“The American people have a right to know what’s in this bill,” Rep. Mike Pence (R-Ind) told HUMAN EVENTS after the press conference. “Every member of Congress -- Republicans and Democrats -- voted to post this bill on the internet for 48 hours, 48 hours ago. We’ll see if the Democrats keep their word.”
Actually -- as of 5:15 pm, the Democrats had broken their word. The stimulus bill -- which we still haven’t seen -- will be released late tonight and will be brought up on the House floor at 9 am tomorrow.
The following statement was released by Majority Leader Steny Hoyer at 4:57 p.m.:
"The House is scheduled to meet at 9:00 a.m. tomorrow and is expected to proceed directly to consideration of the American Recovery and Reinvestment conference report. The conference report text will be filed this evening, giving members enough time to review the conference report before voting on it tomorrow afternoon."
Meanwhile, at an earlier presser Thursday, Pelosi -- while talking about legislation regarding school construction funds -- said it was vital to see the language of a bill before making decisions. ReadtheStimulus.org had the following quote:
“With all of this you have to see the language. You said this --- I said that --- I understood it to be this way --- you know, we wanted to see it in writing and when we did that then we were able to go forward."
"Around here language means a lot. Words weigh a ton and one person's understanding of a spoken description might vary from another's. We wanted to see it. And not only just I had to see it, I had to show it to my colleagues and my caucus. We wanted to take all the time that was necessary to make sure it was right."
Congressional members are also exchanging barbs via the popular social network Twitter. Sen. Claire McCaskill (D-Mo.) twittered, "Don't know when we're going to vote. Will the no votes delay vote just because they can? Speed is important. They know that."
House Republican Whip Eric Cantor (R-Va.) twittered back, “Those in favor of speed over commonsense may just be afraid of letting the People know what they are ramming through.”
UPDATE: The Democrats finally made the bill's language available around 11 p.m. Thursday, approximately 10 hours before members meet Friday to consider the bill and 38 hours short of the time promised Americans to review the bill.
Will this bill stimulate the economy? Ecomomist say no.
WASHINGTON — The compromise economic stimulus plan agreed to by negotiators from the House of Representatives and the Senate is short on incentives to get consumers spending again and long on social goals that won't stimulate economic activity, according to a range of respected economists.
"I think (doing) nothing would have been better," said Ed Yardeni, an investment analyst who's usually an optimist, in an interview with McClatchy. He argued that the plan fails to provide the right incentives to spur spending.
"It's unfocused. That is my problem. It is a lot of money for a lot of nickel-and- dime programs. I would have rather had a lot of money for (promoting purchase of) housing and autos . . . . Most of this plan is really, I think, aimed at stabilizing the situation and helping people get through the recession, rather than getting us out of the recession. They are actually providing less short-term stimulus by cutting back, from what I understand, some of the tax credits."
House and Senate negotiators this week narrowed the differences between their competing stimulus plans. In so doing, they scrapped a large tax credit for buying automobiles that would've caused positive ripple effects across the manufacturing sector. They settled instead on letting purchasers of new vehicles deduct from their federal taxes the state and local sales taxes on the cars they bought.
The exception to this is for buyers of plug-in hybrids, cars that run off a battery that can be charged at home or in the office. Buyers of these vehicles, available in very limited supply, could get a tax credit of up to $9,100.
A Republican-backed proposal that would've provided a $15,000 tax credit to first-time homebuyers also was scaled back dramatically. Instead, the compromise provides first-time homebuyers a tax credit of up to $8,000, and it doesn't have to be repaid over the life of the mortgage. Incentives already in place offer buyers a $7,500 credit that must be repaid, so the bill is an improvement, but short of what many economists think is necessary.
Another reason that some analysts frown on the stimulus is the social spending it includes on things such as the Head Start program for disadvantaged children and aid to NASA for climate-change research. Both may be worthy efforts, but they aren't aimed at delivering short-term boosts to economic activity.
"All this is 25 years of government expansion jammed into one bill and sold as stimulus," said Brian Riedl, the director of budget analysis for the Heritage Foundation, a conservative policy research group.
The view wasn't much more supportive on the other side of the political spectrum. In a brief on the stimulus compromise, William Galston, a senior fellow at the center-left Brookings Institution and a former Clinton White House adviser, warned Thursday that a bank-rescue plan being finalized will make the $789 billion look like "pocket change."
"While the stimulus bill is a necessary condition for economic stabilization and recovery, it is hardly sufficient," Galston wrote. "As the lesson of Japan in the 1990s shows, fiscal stimulus without financial rescue yields stagnation — at best."
" . . . Serious observers believe that recovery cannot begin until we acknowledge that losses in the financial system amount to some trillions of dollars, rendering many institutions insolvent. The temptation will be to muddle along, hoping that these institutions can gradually regain strength without putting massive amounts of taxpayers' money at risk. If we go down that road, we are likely to end up with zombie banks whose balance sheets are riddled with near-worthless investments — banks that cannot lend to credit-worthy customers and who cannot trust one another," Galston wrote.
With the economy in a tailspin, doing nothing isn't an option, however.
"Something is better than nothing, and bigger was better than smaller in terms of the stimulus needed," said Chris Varvares, president of prominent forecaster Macroeconomic Advisers in St. Louis. "The economy needs a fiscal jolt."
Even some proponents of a stimulus are disappointed, however. Harvard University economist Martin Feldstein, a former adviser to President Ronald Reagan, was an early supporter. He said that government is now the only engine left to spark economic activity, but he said that the compromise falls short of what's needed.
"If the choice is between the current bill and an improved bill, I would say wait and improve the bill," Feldstein told CNBC on Wednesday after the compromise was announced. "I am disappointed with the structure of this bill."
Like Yardeni and other analysts, Feldstein wanted more incentives for consumers to make big purchases that have ripple effects across the economy. When a car is purchased, it helps not only the carmaker, but its suppliers, the trucking companies and railroads that transport cars, the states that issue license plates and so on.
Still, could this stimulus get the U.S. economy back on its feet?
By itself, probably not. The stimulus plan, however, is supposed to work in tandem with new efforts by the Treasury and the Federal Reserve to rid banks of distressed assets that are poisoning their balance sheets, and with other federal efforts to halt mortgage delinquencies and foreclosures. Much will depend on the details of both federal attack plans, which the Obama administration promises are coming soon.
There's also the problem of time. Much of the stimulus is to be spread over a two-year period or longer — and 2009 looks increasingly bleak.
A Wall Street Journal survey of 52 mainstream economic forecasters published Thursday found that while most forecasters still think there could be slow growth by the second half of the year, that won't offset steeper-than-projected declines in the first half of 2009.
That means this is essentially a lost year for the economy. Most scenarios envision the economy picking back up again next year.
The president of the U.S. Chamber of Commerce, in a speech in Detroit Thursday, tried to put a brave face on the tough year ahead. Thomas Donohue acknowledged that big business didn't get in the stimulus bill some of the tax-relief measures it most wanted, but promised the Chamber's support.
"The bottom line is that at the end of the day, we're going to support the legislation. Why? Because with the markets functioning so poorly, the government is the only game in town capable of jump-starting the economy," Donohue said.
"I think (doing) nothing would have been better," said Ed Yardeni, an investment analyst who's usually an optimist, in an interview with McClatchy. He argued that the plan fails to provide the right incentives to spur spending.
"It's unfocused. That is my problem. It is a lot of money for a lot of nickel-and- dime programs. I would have rather had a lot of money for (promoting purchase of) housing and autos . . . . Most of this plan is really, I think, aimed at stabilizing the situation and helping people get through the recession, rather than getting us out of the recession. They are actually providing less short-term stimulus by cutting back, from what I understand, some of the tax credits."
House and Senate negotiators this week narrowed the differences between their competing stimulus plans. In so doing, they scrapped a large tax credit for buying automobiles that would've caused positive ripple effects across the manufacturing sector. They settled instead on letting purchasers of new vehicles deduct from their federal taxes the state and local sales taxes on the cars they bought.
The exception to this is for buyers of plug-in hybrids, cars that run off a battery that can be charged at home or in the office. Buyers of these vehicles, available in very limited supply, could get a tax credit of up to $9,100.
A Republican-backed proposal that would've provided a $15,000 tax credit to first-time homebuyers also was scaled back dramatically. Instead, the compromise provides first-time homebuyers a tax credit of up to $8,000, and it doesn't have to be repaid over the life of the mortgage. Incentives already in place offer buyers a $7,500 credit that must be repaid, so the bill is an improvement, but short of what many economists think is necessary.
Another reason that some analysts frown on the stimulus is the social spending it includes on things such as the Head Start program for disadvantaged children and aid to NASA for climate-change research. Both may be worthy efforts, but they aren't aimed at delivering short-term boosts to economic activity.
"All this is 25 years of government expansion jammed into one bill and sold as stimulus," said Brian Riedl, the director of budget analysis for the Heritage Foundation, a conservative policy research group.
The view wasn't much more supportive on the other side of the political spectrum. In a brief on the stimulus compromise, William Galston, a senior fellow at the center-left Brookings Institution and a former Clinton White House adviser, warned Thursday that a bank-rescue plan being finalized will make the $789 billion look like "pocket change."
"While the stimulus bill is a necessary condition for economic stabilization and recovery, it is hardly sufficient," Galston wrote. "As the lesson of Japan in the 1990s shows, fiscal stimulus without financial rescue yields stagnation — at best."
" . . . Serious observers believe that recovery cannot begin until we acknowledge that losses in the financial system amount to some trillions of dollars, rendering many institutions insolvent. The temptation will be to muddle along, hoping that these institutions can gradually regain strength without putting massive amounts of taxpayers' money at risk. If we go down that road, we are likely to end up with zombie banks whose balance sheets are riddled with near-worthless investments — banks that cannot lend to credit-worthy customers and who cannot trust one another," Galston wrote.
With the economy in a tailspin, doing nothing isn't an option, however.
"Something is better than nothing, and bigger was better than smaller in terms of the stimulus needed," said Chris Varvares, president of prominent forecaster Macroeconomic Advisers in St. Louis. "The economy needs a fiscal jolt."
Even some proponents of a stimulus are disappointed, however. Harvard University economist Martin Feldstein, a former adviser to President Ronald Reagan, was an early supporter. He said that government is now the only engine left to spark economic activity, but he said that the compromise falls short of what's needed.
"If the choice is between the current bill and an improved bill, I would say wait and improve the bill," Feldstein told CNBC on Wednesday after the compromise was announced. "I am disappointed with the structure of this bill."
Like Yardeni and other analysts, Feldstein wanted more incentives for consumers to make big purchases that have ripple effects across the economy. When a car is purchased, it helps not only the carmaker, but its suppliers, the trucking companies and railroads that transport cars, the states that issue license plates and so on.
Still, could this stimulus get the U.S. economy back on its feet?
By itself, probably not. The stimulus plan, however, is supposed to work in tandem with new efforts by the Treasury and the Federal Reserve to rid banks of distressed assets that are poisoning their balance sheets, and with other federal efforts to halt mortgage delinquencies and foreclosures. Much will depend on the details of both federal attack plans, which the Obama administration promises are coming soon.
There's also the problem of time. Much of the stimulus is to be spread over a two-year period or longer — and 2009 looks increasingly bleak.
A Wall Street Journal survey of 52 mainstream economic forecasters published Thursday found that while most forecasters still think there could be slow growth by the second half of the year, that won't offset steeper-than-projected declines in the first half of 2009.
That means this is essentially a lost year for the economy. Most scenarios envision the economy picking back up again next year.
The president of the U.S. Chamber of Commerce, in a speech in Detroit Thursday, tried to put a brave face on the tough year ahead. Thomas Donohue acknowledged that big business didn't get in the stimulus bill some of the tax-relief measures it most wanted, but promised the Chamber's support.
"The bottom line is that at the end of the day, we're going to support the legislation. Why? Because with the markets functioning so poorly, the government is the only game in town capable of jump-starting the economy," Donohue said.
The house passes this crap bill.
WASHINGTON (AP) - Handing the new administration a big win, House Democrats passed President Barack Obama's $787 billion plan to resuscitate the economy on Friday despite a wall of Republican opposition. The bill was approved 246-183 and sent to the Senate, where a vote was scheduled late Friday afternoon.
That vote was to be held open for hours, waiting for Ohio Democrat Sherrod Brown, who was attending a memorial service for his mother and then flying back to cast the deciding vote.
Senate passage would meet a deadline of sending the bill to Obama before a congressional recess begins next week.
The 1,071 page, 8-inch-thick measure combines $281 billion in tax cuts for individuals and businesses with more than a half-trillion dollars in government spending. The money would go for infrastructure, health care and help for cash-starved state governments, among scores of programs. Seniors would get a $250 bonus Social Security check.
Told that no Republican backed the measure, White House press secretary Robert Gibbs reacted by citing another number: "3.5 million jobs that we look forward to saving or creating."
Seven Democrats voted against the bill.
Republicans said the package won't work because it has too little in tax cuts and spreads too much money around to everyday projects like computer upgrades for federal agencies.
"This legislation falls woefully short," said House GOP Leader John Boehner of Ohio. "With a price tag of more than $1 trillion when you factor in interest, it costs every family almost $10,000 in added debt. This is an act of generational theft that our children and grandchildren will be paying for far into the future."
The final $787 billion measure has been pared back from versions previously debated in order to attract support from three Senate GOP moderates—Susan Collins and Olympia Snowe of Maine and Arlen Specter of Pennsylvania. Their help is essential to meeting a 60-vote threshold in the Senate, required to overcome a Republican objection that the bill adds to the deficit.
The bill originally passed the Senate by a 61-37 tally, but Sen. Edward Kennedy, D-Mass., suffering from brain cancer, is not expected to vote this time.
Sen. Judd Gregg, R-N.H., who withdrew his nomination to be Obama's Commerce secretary, said he would vote against the bill.
Democrats lavished praise on the measure, which combines tax cuts for workers and businesses with more than a half-trillion dollars in government spending aimed at boosting economic demand.
"By investing in new jobs, in science and innovation, in energy, in education ... we are investing in the American people, which is the best guarantee of the success of our nation," said House Speaker Nancy Pelosi, D-Calif.
The plan is the signature initiative of the fledgling Obama administration, which is betting that combining tax cuts of $400 a year for individuals and $800 for couples with an infusion of spending for unemployment assistance, $250 payments to people on Social Security, and extra money for states to help with the Medicaid health program for the poor and disabled will arrest the economy's fall.
Local school districts would receive $70 billion in additional funding for K-12 programs and special education and to prevent cutbacks and layoffs and repair crumbling schools. There's about $50 billion for energy programs, much of which goes to efficiency programs and renewable energy.
Some $46 billion would go to transportation projects, not enough to please many lawmakers.
Negotiators insisted on including a $70 billion tax break to make sure middle- to upper-income taxpayers won't get hit by the alternative minimum tax and forced a reduction of Obama's signature tax break for 95 percent of workers.
The AMT was designed 40 years ago to make sure wealthy people pay at least some tax, but is updated for inflation each year to avoid tax increases averaging $2,300 a year. Fixing the annual problems now allows lawmakers to avoid difficult battles down the road, but economists say the move won't do much to lift the economy.
Republicans pointed out a bevy of questionable spending items that made the final cut in House-Senate negotiations, including money to replace computers at federal agencies, inspect canals, and issue coupons for convertor boxes to help people watch TV when the changeover to digital signals occurs this summer.
"This measure is not bipartisan. It contains much that is not stimulative," said Sen. John McCain, R-Ariz., Obama's rival for the White House. "And is nothing short—nothing short—of generational theft" since it burdens future generations with so much debt, he added.
____
Associated Press Writer Ben Feller contributed to this report.
That vote was to be held open for hours, waiting for Ohio Democrat Sherrod Brown, who was attending a memorial service for his mother and then flying back to cast the deciding vote.
Senate passage would meet a deadline of sending the bill to Obama before a congressional recess begins next week.
The 1,071 page, 8-inch-thick measure combines $281 billion in tax cuts for individuals and businesses with more than a half-trillion dollars in government spending. The money would go for infrastructure, health care and help for cash-starved state governments, among scores of programs. Seniors would get a $250 bonus Social Security check.
Told that no Republican backed the measure, White House press secretary Robert Gibbs reacted by citing another number: "3.5 million jobs that we look forward to saving or creating."
Seven Democrats voted against the bill.
Republicans said the package won't work because it has too little in tax cuts and spreads too much money around to everyday projects like computer upgrades for federal agencies.
"This legislation falls woefully short," said House GOP Leader John Boehner of Ohio. "With a price tag of more than $1 trillion when you factor in interest, it costs every family almost $10,000 in added debt. This is an act of generational theft that our children and grandchildren will be paying for far into the future."
The final $787 billion measure has been pared back from versions previously debated in order to attract support from three Senate GOP moderates—Susan Collins and Olympia Snowe of Maine and Arlen Specter of Pennsylvania. Their help is essential to meeting a 60-vote threshold in the Senate, required to overcome a Republican objection that the bill adds to the deficit.
The bill originally passed the Senate by a 61-37 tally, but Sen. Edward Kennedy, D-Mass., suffering from brain cancer, is not expected to vote this time.
Sen. Judd Gregg, R-N.H., who withdrew his nomination to be Obama's Commerce secretary, said he would vote against the bill.
Democrats lavished praise on the measure, which combines tax cuts for workers and businesses with more than a half-trillion dollars in government spending aimed at boosting economic demand.
"By investing in new jobs, in science and innovation, in energy, in education ... we are investing in the American people, which is the best guarantee of the success of our nation," said House Speaker Nancy Pelosi, D-Calif.
The plan is the signature initiative of the fledgling Obama administration, which is betting that combining tax cuts of $400 a year for individuals and $800 for couples with an infusion of spending for unemployment assistance, $250 payments to people on Social Security, and extra money for states to help with the Medicaid health program for the poor and disabled will arrest the economy's fall.
Local school districts would receive $70 billion in additional funding for K-12 programs and special education and to prevent cutbacks and layoffs and repair crumbling schools. There's about $50 billion for energy programs, much of which goes to efficiency programs and renewable energy.
Some $46 billion would go to transportation projects, not enough to please many lawmakers.
Negotiators insisted on including a $70 billion tax break to make sure middle- to upper-income taxpayers won't get hit by the alternative minimum tax and forced a reduction of Obama's signature tax break for 95 percent of workers.
The AMT was designed 40 years ago to make sure wealthy people pay at least some tax, but is updated for inflation each year to avoid tax increases averaging $2,300 a year. Fixing the annual problems now allows lawmakers to avoid difficult battles down the road, but economists say the move won't do much to lift the economy.
Republicans pointed out a bevy of questionable spending items that made the final cut in House-Senate negotiations, including money to replace computers at federal agencies, inspect canals, and issue coupons for convertor boxes to help people watch TV when the changeover to digital signals occurs this summer.
"This measure is not bipartisan. It contains much that is not stimulative," said Sen. John McCain, R-Ariz., Obama's rival for the White House. "And is nothing short—nothing short—of generational theft" since it burdens future generations with so much debt, he added.
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Associated Press Writer Ben Feller contributed to this report.
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