Summers calls for new stimulus

[Ed Barrow]

Source: Financial Times

The Obama administration made a strong plea to Congress yesterday to grit its teeth and pass a new set of spending measures - dubbed the "second stimulus" by some economists - in order to help dig the economy "out of a deep valley".

The call for action, which was made by Lawrence Summers, Barack Obama's senior economic adviser, who urged Congress to pass up to $200bn (£138.9bn) in spending measures, came at the same time as Mr Obama asked Capitol Hill to grant him powers to cut "unnecessary spending".

The combined announcements was made amid rising concern that centrist Democrats, or those representing marginal districts, might vote against the spending measures, which include more loans for small businesses, an extension of unemployment insurance and aid to states to prevent hundreds of thousands more teachers from being laid off.

It also comes at a time when last year's $787bn stimulus is wearing off. Mr Summers argued that it would be a premature move at this stage in the cycle to move to fiscal discipline. "I cannot agree with those who suggest that it somehow threatens the future to provide truly temporary, high-bang-for-the-buck jobs and growth measures," he said. "Spurring growth, if we can achieve it, is by far the best way to improve our fiscal position."



Read more: http://www.ft.com/cms/s/0/415ecf44-6795-11df-a932-00144feab49a.html

[nadinbrzezinski]

1. Summers actually fought Keynseian economics

and they were told it wasn't big enough the first time... this is amazing

For the record WE DO NEED IT.

[msongs]

2. cut unnecessary spending? like end his 3 wars? good for him nt

[getthefacts]

5. +1

[MrSlayer]

3. Well if they didn't gut the last one we wouldn't need a second.

Massive infrastructure and public works building projects are what is needed. Not bullshit tax cuts.

[MannyGoldstein]

4. And How Much Does He Want To Go To Goldman Sachs?

Forgive me for being skeptical, but Summers has a track record of hammering the Middle Class at every turn.

[lib2DaBone]

6. We need a massive public works jobs program....

For every dollar invested in Roads, Schools, bridges and electric grids, four dollars is put directly back into the economy.

However..good luck getting anything past the "Party of No". The Republicans have their cushy Federal jobs and they only know how to off shore American Jobs to China for quick profit.

[No Elephants]

10. Only Republicans know how to offshore jobs?

[Zenlitened]

7. Welcome news. - n/t

[Demeter]

8. It's a Little Late to Get Religion, Larry

You don't mind if I call you Larry, do you? After all, you never noticed anyone below the level of a Senator or a CEO before.

And neither one of those groups needs any more stimulus.

[depakid]

9. Best that it come in the form of aid to the states