Misc: One News Page Alert: More stimulus, eh?

One News Page Alert: More stimulus, eh? | Michael Tomasky

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More stimulus, eh? | Michael Tomasky
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Noam Scheiber of TNR has an interviewÃ‚Â with Senator Kent Conrad, who
chairs the Budget Committee and would thus be deeply involved in any
future stimulus negotiations. Conrad is more amenable to the notion
that one might have thought:Conrad: I think there's strong consensus
in the short-term about the need to do more things that generate jobs.
The things that have the most support are infrastructure, aid to
states--the states are laying off people--and some kind of jobs
creditÃ‚Â [presumably a tax credit] to small business. NS: I thought aid
to states was going nowhere on the Hill? Conrad:Ã‚Â It is tough. But ...
most economists say it's one of the things you could do that would
have the most rapid turn-around. The reason is clear. A lot of states
areÃ‚Â in an extreme situation. They have constitutional balanced budget
requirements. They're laying off people. We don't want them doing
that. We want them working on roads, bridges, airportsÃ¢Â€Â¦I'm just
saying what I hear from colleagues, what I hear from analysts, about
what would have the most benefits. It's hard to do, the hardest of the
three. Infrastructure, jobs credit/assistance to small business I
think are the things that enjoy the broadest support.In the end,
Scheiber foresees:Ã¢Â€Â¦ maybe $100-$200 billion in additional stimulus
early next year, with an emphasis on things that can deliver the
biggest bang for the buck, job creation-wise. A lot of that money will
go to things like a job-creation tax credit or a temporary payroll tax
holiday. (The House, Senate, and White House are all very much in the
process of thinking through ideas.) But I'd be surprised if
aÃ‚Â substantial chunk didn't end up in theÃ‚Â infrastructure account,
too, givenÃ‚Â the straight-forward connection to job growth.So, if he's
right, we're looking at maybe $1 trillion in stimulus when all is said
and done anyway. But nooooooooooo, Congress couldn't do a $1 trillion
bill back in February, because that was sticker shock! Too high for
the blue dogs! Really a ridiculous institution, Congress, in so many
ways.Meanwhile, the CBO reported yesterdayÃ‚Â that the first Obama
stimulus has saved or created somewhere between 600,000 and 1.6
million jobs, and that it boosted GDP by as much as 3.2%. Splitting
the difference somewhat conservatively, let's say 1 million jobs. One
million more unemployed and a far more sluggish economy Ã¢Â€Â¦ something
to think about. Although obviously, any right thinking American would
sooner see 10 million more unemployed that a descent into socialism,
right?