Politics | 10/10/2008 8:00 am

Democrats Mull Another Potential Stimulus Plan to Get Economy Going

By The Staff at wowOwow.com

There’s no question the nearly $1 trillion pumped into the nation’s financial system by the Federal Reserve and Congress to encourage lending is a huge amount of money.

But it’s simply not enough.

Banks still aren’t lending to each other or other customers. Consumer spending – the traditional fallback when the economy is in the toilet – saw its first quarterly decline in 17 years for the third quarter. Business is halting purchases of equipment and manpower – and some of them are having a hard time getting credit lines. State and local governments here and there are cutting costs and have seen their own credit frozen.

So, The New York Times reports, the Democratic leadership in Congress is “seriously considering” a large fiscal stimulus proposal, which would send a significant amount of money to states and cities. House Speaker Nancy Pelosi this week suggested that the new stimulus package should be $150 billion.

“We have to prop up consumption,” Rep. Barney Frank, D-MA, and chairman of the House Financial Services Committee, told the Times in an interview.

The new proposal would be far greater than the $60 billion stimulus package the House passed in late September, which the Senate didn’t act on and President Bush threatened to veto. Congress, now in recess, would be asked to return after the November election to act on the proposal in a lame-duck session.

An earlier $107 billion stimulus package was passed and signed by Bush. Mostly low- and moderate-income families benefited from that when they received stimulus checks. Republicans supported that plan, even though they traditionally think the best way to boost the economy is through tax cuts at the corporate and individual level.

The Democratic proposal, outlined by Frank, would:

-Provide tax relief in some form for families to spur spending.

-Extend unemployment insurance benefits beyond 39 weeks.

-Expand the food stamp program.

-Give as much as $150 billion to states and cities to sustain their everyday spending; many cities have cut police and other public worker staffs. The federal subsidies would free up money the states currently must put into Medicaid and allow them to divert those funds to pay teachers and vendors, or to quickly resume public works projects.

The Hill reports that House Speaker Nancy Pelosi, D-CA, and other Democratic leaders will hold a meeting Monday with a group of economists, as part of their effort to pressure the GOP and Bush to support an economic stimulus package.

“Just as the president and Congress worked together in recent weeks on an economic rescue plan to help bring stability to our financial markets, we must now take additional action and pass a jobs creation and economic recovery stimulus plan,” Pelosi said in a statement.

President Bush is expected to make a statement on the financial situation shortly after 10 AM ET today.

10 Reader Comments (so far…) Sign In or Register to comment

I know someone, (as I am sure we all do) that told me recently she doesn’t concern herself with politics and issues like the bail outs because it really doesn’t affect her. That was two weeks ago. Just last night she told me she is being laid off because the segment of the company she works for is transferring her job overseas. She is stunned, confused and scared….and would you believe she STILL doesn’t appreciate the connection of the economic crisis to her current situation? She is taking solace in the fact that she’ll have unemployment. She doesn’t understand that, that too could possibly be affected to some degree. We’re in such a difficult place and I don’t know about the rest of you, but I don’t know who we should trust to pull us out of it?

By Belinda Joy on 10/10/2008 9:05 am

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WARREN BUFFET ~~~!! Thats WHO ….. & I think Obama has him in mind ,,for the job …I think OBAMA isnt saying so much …because he may loose votes ..I BELIEVE in OBAMA like I do Kucinich … I think OBAMA will Pull LOts of really GREAT things outta his Bag when he is in the WHITE HOUSE … Now on a lighter side …>>> I would like to go to the White House and have a Spiritual Cleansing …with my Sage and Holy Water and Salt …and Olive Oil …I wish I knew how to talk to Michell Obama …I would tell her to please get some Spiritual people in there and Pray That House Clean …of all the Evil ….I bet Evil Spirits are bouncing off the walls there …I am Calirvoyant and I just know they ae there ..and I would Love To go ….to Pray …if anyone doesnt think that man and his administration arent evil will be the kind of people who are fooled by the antiChrist ….

By Eliza Dodd on 10/10/2008 9:38 am

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Wow! Her company, in the current populus environment AGAINST those companies that move jobs away from America, her company is STILL movning jobs oversees? Amazing! What else is amazing, is that mcCain is stepping up his attacks on Obama re: Ayers, and Palin is still inciting anger and mocking those who pay high taxes! It does seem that everything is upside down! Bush just did his thing, in his Press Conference—-same ‘ol, same ‘ol—-nothing new there, either. We suffer from a lack of leadership, in this country, in my opinion. I am talking about real leaders! It is easier to obtain a title, than it is to do the work that a title requires. We can all be the Queenies at our homes, but if we do not earn the adoration by cleaning up our homes every now and then, or take care of the needs of our young children, or make sure that we take the time to care for ourselves,or those tasks that allow our part of the universe run smoothly—the title becomes fodder for the “joke of the day”. WE all know that along with a title, is the responsibility—-expectation that the one with the title must earn it with leadership efforts required, to support that title. McCain is focused on tearing someone down, Plain is focused on being a celebrity, and realizes she gets more attention the more sarcastic and caustic, she can be, Bush is in overwhelm and is now giving us lectures to ‘get over our anxiety’ (reminds me of Carters’ lectures, haha), Cindy McCain is telling us we are all ‘uneducated’ if we suffer stress and anxiety——but Obama, is telling us we must all work together, and we can make it thru this economic cirisis. Although I do not know any of them personally, I tend to trust the ones who include me in the solution, and that is Obama… And I know myself well enough, that I trust myself to do my part.

By Patty E on 10/10/2008 10:15 am

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Wow Patty, you and I don’t know one another and I can tell you (based on the last sentence of your post) we have a lot in common…that is exactly how I feel. So many people are putting Sen. Obama up on a pedestal, speaking of him as being the solution to all our country’s ills. He’s not. He can’t possibly solve all of the problems our nation has to deal with alone. The fact that Barack Obama has proven he surrounds himself with truly brilliant people, speaks to his judgment. “When” he takes office in January, we can collectively rest assured that his cabinet will be comprised of the smartest, most ethical and honest people he can find. They will reflect America in all aspects, young ~ old, left ~ right, Black ~ White and every race and ethnicity, respected statisticians, economists, business leaders….I find it exciting to know our White House will be buzzing with fresh, new ideas about how to bring our country to a place where we were promised it would be 8 years ago, but sadly never saw. On a side note Patty, I think if John McCain had chosen someone other than Palin, as in Mitt Romney, I think the Republicans would be ahead in the polls right now. Lord knows I don’t agree with Mitt Romney on any topics, but I think most Americans would have found him much more palatable than Palin. It is so apparent she is not qualified to lead our country; even the staunchest conservatives will admit it. But Romney would have given Barack Obama a run for his money. And that in and of itself speaks to McCain’s judgment. He allowed those in his circle to talk him into choosing a woman he doesn’t even know on the gamble that because she was female and younger, it would pull votes. Isn’t it ironic how that has back fired?

By Belinda Joy on 10/10/2008 10:58 am

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WHO? Ya mean The Lord of Chaos >Bush ? I will never listen to that thing again …I rather call NancyPelosi @ 202-224-3121 and tell her to put IMPEACHMENT back on the tabel ! I have called that woman so many times it isnt funny …The interns are very RUDE and then they switch you to a answering machine for you to leave her a message ….And I know I sound like a nut …my emotions just run away …..I am so mad @ these CLOWNS ! Thats what they all are …I hope Cindy Sheehan gets her job or Shirley Golub …They are both after Nancy Pelosi’s job …and rightfully so ! Someone told me her family is familia …ya know the MAFIA ….well I say she belongs to those NAZI’s in the White House …She is bought and paid for like a WHORE …just LIKE Palin ….the Mole … Bush has WASTED enough of my TIME here on Earth ..He has killed Millions ….All that money wasted on his GAIN The wealth that went into his pockets ….like a dirty rotten USED Car saleman ! All I have heard come out of his mouth are all LIES …All I can hear in my head when that ABOMINATION speaks is LIE LIE LIE LIE !!!! I dont hear one word ….just babbel !He is a LIAR ! The Late Great Pope John Paul said Bush is antiChrist …..RECORED IN BOOKS ….and The POPE wished HE was younger so HE could fight BUSH ….also recorded are the word the Pope said about this DAY IN TIME ….He said 107xs “These are the end of days ” Also recorded in books . This abomination …has Stolen Money from me and now wants to give me some money to spend ? What a JOKE …and I AN’T Falling for it ….Expand the FOOD STAMP PROGRAM MR.BUSH ???? People Cant Get FOOD STAMPS …Thats why there are all these FOOD PANTRIES !!! AND THEY ARE RUNNING ON EMPTY !!! BECAUSE OF YOU WE HAVE FOOD PANTRIES …YOU HAVE MADE PEOPLE BEG FOR FOOD !!!!The Law Is Mr.Bush people cant draw FOOD STAMPS after 3 years their ENTIRE life time …MR BUSH …some people have to EAT after 3 years …meaning some people have to have FOOD all Thier LIVES to LIVE …..Some people cant work …ever …….some people are OLD and cant make the UTILITIES or EAT ! Because of your LOBBY-ISTS That fill your POCKETS ….Because of BIG PHARM co.’s ! ripping people OFF big time …thats why OLD PEOPLE RIDE BUSES for HOURS to CANADA !!!!!! To afford to LIVE !!! They NEED MEDICINE MR BUSH !!!!!!! TO LIVE ! YOU and This WHOLE Admisnistration should be IMPEACHED along with Nancy Pelosi ! Tried for WAR CRIMES and CRIMES AGAINST HUMANITY!!! NEWS FLASH MR BUSH >>>>***** over One Million People Will DIE This Year IN America because Lack of Health Insurance (WORLD HEALTH ORGANIZATION) Reported ….The UNITED NATIONS should bring you up on WAR Crimes ! Just Like In Germany …Nothing New Under The SUN ! Except this time …someone is getting away with Genocide ….and it’s You Mr.Bush ! You Messed this Whole Country Up ..Made people believe We were doing Great …with your Deceptions ….You are Pure Evil …with you $0 down loans on homes People could never afford ….EVER ……just to get the people’s mind off your illegal war ,Shame On You ! What will you tell GOD when you meet ? Dont worry Mr.Bush …talking will be over for you ….GOD will be doing all the talking ….

By Eliza Dodd on 10/10/2008 9:19 am

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When Congress ultimately completely ignored the almost unilateral voice of the American people AGAINST the bailout for billionaire bankers, it was supposed to restore confidence to the financial markets. It has done exactly the opposite, as the stock market has dropped over 1,000 points SINCE the Senate passed it. Indeed the only substantial up day was the one AFTER the original House rejection. And in case anyone missed it, according to our Constitution, ALL funding bills must originate in the House. So — by using preemptive Senate passage to hustle reluctant House members, Nancy Pelosi has once again presided over a further enfeeblement of the chamber she is supposed to be leading, just as she grossly abused her power and defied the Constitution herself in blocking action on impeachment. Pelosi Must Go. TV Spot Action Page: http://www.usalone.com/cindy/bankers_bailout.php She must be defeated in four weeks by Cindy Sheehan who is on the ballot for the 8th congressional district of California in San Francisco, and who is collecting powerful endorsements from sources like the Bay Area Guardian. Please watch Cindy Sheehan’s new TV spot, which with your help can be running in heavy rotation in her district within a day or two. By arrogantly dismissing our literally millions of phone calls and emails vehemently opposed to this lunatic policy blunder, Congress has demonstrated that they are for the most part beyond redemption. We have only one practical recourse. Vote the cowardly losers out of office as just soon as possible, and replace each and every one of them with strong progressives who WILL be accountable to the people. We MUST Help Cindy Sheehan defeat Nancy Pelosi This is our only real chance for the next two years. Nothing would send a stronger message that the voice of the people actually COUNTS for something that a resounding victory for Cindy Sheehan in the Congressional race for the 8th district of California against Nancy Pelosi in just 4 weeks. NOTHING would send a stronger message to the gutless wimps in Congress that their reign of cowardice is over. What we need is literally a tsunami of donations to put Cindy Sheehan’s new TV spot on the air, where she pulls no punches about the abject failure of Pelosi to lead. If you are frustrated, if you are angry, if you can make a donation of any amount, please do so from the page below. Watch The New TV Spot: http://www.usalone.com/cindy/bankers_bailout.php And as if all this weren’t galling enough. How do you like how Bush came out in the Rose Garden after signing the “Fox In Charge Of The Hen House Bill” to basically say, “Thanks, chumps.”? How dare they call themselves “Representatives”? How dare they! With their phones flooded a hundred to one shouting down this massive theft from the American taxpayer, with such an avalanche of emails coming the House email servers almost crashed, how dare they?! And guess what, the people were right. The hundreds of top economists pleading for sanity and a hearing were right. Pelosi, the queen of the cave-ins, must be defeated. There can be no honor in allowing her to remain in office. Shame on us if we don’t do everything we could have done to remove her. Then and only then can all the other things that need to be done to fix this disaster be implemented. And please, if you are the San Francisco area. Cindy needs an army of volunteers to hit the streets inspiring voters. And even if you are not, you can help make phone calls. There are volunteer links on the same page with the video. You can do something. You must do something. Please help. And let election day this time be a bright and shining day where we the people actually start to take back control of our own government. Paid for by Cindy Sheehan for Congress Donations to Cindy Sheehan for Congress are not tax-deductible Please take action NOW, so we can win all victories that are supposed to be ours, and forward this alert as widely as possible. If you would like to get alerts like these, you can do so at http://www.usalone.net/in.htm Or if you want to cease receiving our messages, just use the function at http://www.usalone.net/out.htm

By Eliza Dodd on 10/10/2008 9:32 am

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WOW is all I can say to Eliza’s rant…

By C Hardy on 10/10/2008 9:51 am

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I hope Obama’s ready to inherit a bankrupt nation. He needs our support more than ever. Working together…stay out of the skies, and learn to do business with our neighbors.

By Ms. Dee on 10/10/2008 10:29 am