On Wed, Nov 12, 2008 at 10:15 AM, Doug Henwood <dhenwood at panix.com> wrote:
> <http://blogs.abcnews.com/george/2008/11/obama-advisers.html>
>
> Obama Advisers Push $500 Billion Stimulus
> November 11, 2008 7:23 PM
>
> President-elect Barack Obama is hearing from private sector economists, and
> some members of his economic advisory team that Congress should consider --
> and he should sign into law in January -- a far broader stimulus package
> than anyone has publicly discussed to date.
>
> Instead of $300 billion dollars, which has been the upper limit, they are
> now talking about $500 billion, which is 3 to 4 percent of GDP.
>
> These advisers are looking at analysis that says next year unemployment
> could top eight percent, private sector spending could drop six percent of
> GDP, and the Federal Reserve is basically out of room to do anything more
> with monetary policy.
>
> So they argue the nation's economy will need that injection of capital.
>
> How? They're talking about implementing it through infrastructure -- roads
> and bridges. Tax cuts. Investments in so-called green-jobs and alternative
> energy development. Unemployment extensions. And other aid to state and
> local governments.
>
> But the big question is: how do you get the stimulus without making it
> permanent spending that increases the deficit over the long term?
>
> President-elect Barack Obama has made no final decisions on a stimulus
> package, but this is what they're contemplating right now.
>
> --George Stephanopoulos
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