Theodore's World: Obama Pushes New $80 Billion Stimulus Adding to $1.6 Trillion Deficit

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June 14, 2010

Obama Pushes New $80 Billion Stimulus Adding to $1.6 Trillion Deficit


"This appears to be the first time, in the modern era, that the House is not even going to consider a budget. ... Every family knows that in a tough time, it's more important to have a budget, not less. If you think that they're going to move a budget on Capitol Hill, you must obviously believe that Elvis is still alive. ... That's why I gave the President a letter this week with 100 economists saying that cutting spending now will, in fact, help get the economy moving again and get jobs back to the country."


"Listen, I'm concerned about the plight of teachers, firemen, policemen who face the real possibility that they may be laid off. But to send this letter up here on a Saturday night with no opportunity to cut spending elsewhere in a budget strikes me as a little different. ... The fact is the spending spree in Washington is continuing to run unabated. The American people are screaming at the top of their lungs, 'stop!' And to move this, without finding other offsets in spending, I think is irresponsible. It's just putting more debt on the backs of our kids and grandkids. And it really begs the question, why don't we have a budget this year?"


"The American people want this oil leak stopped now. They want to know what happened. They want the Gulf cleaned up, and they want it all done now. And I just think that BP ought to be held responsible for all of the costs that are involved in this. I said that right from the beginning, and I continue to believe that. I'm not sure that the federal government, though, was -- isn't also responsible. The laws that were in place, the materials that should have been in place for a spill this size, were not. And the reaction, I think, on the part of the Administration has been slow. But having said that, it's time to get this thing stopped now."
"I said from the beginning, BP needs to pay for the entire cost of this. But ... this is a failure of government. Government is there to protect our shores, to protect our environment. And there's been a real failure here. We've been asking for 55 days, where are the inspection reports from this rig? The Administration won't give them to us."


"I think the Israelis have a clear right to defend themselves. When you look at this Flotilla that came over, the first five ships that were inspected, there was no problem at all. It's pretty clear to many of us who looked into this, that this last ship was intended to be a problem, intended to cause a conflict. And this is part of a much bigger problem that we see with the Administration, where we've coddled our enemies, and pushed our friends aside in the process, raising a lot of doubts around the world, including the people of Israel, who are having serious doubts about our commitment to them, our closest ally in the Middle East."


"Our goal is to take the majority in the House. We've got 100 seats in play, we have a real shot at winning the Majority, so that we can put a check on this Administration and all of the spending that's out of control here in Washington, D.C."


Obama Pushes New $80 Billion Stimulus Adding to $1.6 Trillion Deficit


Obama Pushes New $80 Billion Stimulus Adding to $1.6 Trillion Deficit– President Barack Obama and his aides are stepping up a push for further government spending to boost the economy as signs grow of the recovery's fragility.

The White House is calling for Congress to urgently pass measures to extend jobless benefits, aid cash-strapped states and provide targeted tax breaks to encourage research and development by businesses.

Obama's Democratic allies, facing congressional elections in November, have grown cautious about additional spending. Seizing on voter anxiety about deficits, Republicans have cast the administration's policies as fiscally reckless as they seek to challenge Democratic majorities in both houses of Congress.

"People are suffering out there. We want to keep this economy growing faster. We want to see an acceleration of job creation. And we have to take some steps to continue in that direction," top White House adviser David Axelrod told NBC's Meet the Press on Sunday.

His comments came a day after Obama wrote to congressional leaders, urging them to move swiftly to approve new measures to "spur job creation and build momentum toward recovery."

Senate Democrats have introduced legislation that would renew expiring unemployment benefits, and extend business and individual tax breaks. They would offset some of the bill's costs by raising taxes on hedge fund managers and other steps.

The bill complements one passed in the House of Representatives last month, which would authorize about $80 billion in new spending and add $31 billion to the deficit. The cost of the Senate version has not been estimated yet.

Obama also backs a separate measure that would provide cash to states to prevent teacher layoffs but a $23 billion version of that legislation recently failed in the Senate.

"What the president is saying is, we need to expend additional dollars to make sure that we don't have significant layoffs," House of Representatives Majority Leader Steny Hoyer, a Democrat, told ABC's "This Week."


But Hoyer acknowledged growing concern about the U.S. deficit, which reached $1.4 trillion in 2009 and which the White House projects will hit $1.6 trillion in 2010.

"I think it's accurate that there's spending fatigue, not only on Capitol Hill, but around the country. People are concerned about the debt level, and we are, as well," Hoyer said. "But clearly, you cannot not continue to stimulate an economy that is still struggling to get out of the deep ditch that we found it in about 18 months ago."

In his letter to lawmakers, Obama said last year's $863 billion stimulus halted a freefall in the U.S. economy after the worst financial crisis since the 1930s Great Depression.

The jobless aid and many of the other steps under consideration would extend provisions in last year's stimulus package, which Republicans have derided as a wasteful, big-government approach to economic policymaking.

The letter went to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, both Democrats, along with House Republican leader John Boehner and Senate Republican leader Mitch McConnell.

Obama warned that without additional aid, states could be forced to enact "massive layoffs" of teachers, firefighters and other employees.

Last week, state governors pressed Congress to extend a measure that temporarily increased the funds the federal government sends them for Medicaid, the healthcare program for the poor that eats up 20 percent of state budgets on average.

Without the six-month extension, estimated to cost $24 billion, states would be forced to lay off thousands of workers, the governors said. The extension was stripped from the jobs bill passed in the House but is included in the Senate bill.

"I'm concerned about the plight of teachers, firemen, policemen who face the real possibility that they may be laid off," Boehner said on "This Week" but he added such spending needed to be offset.
Boehner criticized what he said was a "spending spree in Washington" that has "run unabated."

Adding to concerns about the tepid recovery, the government reported on Friday that retail sales unexpectedly fell in May for the first time in eight months.

A week earlier, the May employment report showed businesses scaling back on hiring after a spurt in the prior two months. Private-sector payrolls grew only by 41,000 after expanding by 218,000 in April. Unemployment fell to 9.7 percent from 9.9 percent in April.

Economists fear the U.S. recovery could be further dampened by fallout from the European crisis that began in Greece.

"We don't take anything for granted. We have to keep pushing forward and we should not be careless about pulling out of our stimulative efforts too quickly," Axelrod said.
He raised the example of Japan's economic stagnation and deflation in the 1990s to warn of the dangers the United States could face if it allows the stimulus to lapse too quickly.


Wild Thing's comment........

Obama NO! NO!....HELL NO!

STOP the spending!!!

If the teachers didn’t pay so much to the unions, they wouldn’t need as much. This is nothing but another special interest bailout.

Can you believe these idiots are still wanting to spend MORE to solve the mess the democRATS created?
It is insanity. Obama is hell bent on destroying the economy.

This is a clear bailout for SEIU and other government workers unions. Amd the SEIU spends this money on donating to campaigns of democrats........ such as the November election coming up. We have topay for THIER side to freaking win?????? DAMN these people and DAMN obama!

He is working on all fronts to destroy us and it is obvious that he takes pleasure in each situation that he causes in which sane people say “What the F are you doing???!!”

....Thank you Mark for sending this to me.

3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67

Posted by Wild Thing at June 14, 2010 05:48 AM


Why do Teachers and Nurses need a union. And why are they so far in the hole they need a Federal bailout. If the state can't pay then lay them off its that simple. Then maybe the State can find the money by cutting out some of their pet graft and all the sweet heart deals for special favors from Government.

Whenever, I see a hospital strike, you always hear The striking Nurses say, well we are doing it for OUR patients...Really, well whos taking care of the patients while you are out on strike?

Posted by: Mark at June 14, 2010 06:11 PM

Mark, oh that is GREAT ditto all you said. Thank you Mark, I agree so much.

Posted by: Wild Thing at June 14, 2010 11:43 PM