Many on the Left as well as others have been mouthing that there needs to be yet another stim plan to help us out of the recession that is crippling the US…….of course there are others, mostly on the Right, that say it will be way too expensive and it would expand the deficit even further……
So Professor, will there be yet another stim plan? Easy and simple answer is YES……but it will not be called that…..there will be some other cutesy label put on it to try and make it look like something other than what it is…..another stim plan…..
Professor, please qualify that answer…….sure thing people……let us begin with demand….there is NO demand……with no consumer demand there will be little to no jobs created…..no jobs then no expansion of inventories and then NO recovery……it is just that simple….
Then how will the economy recovery? The new stim plan will not use that label but it will employ such tactics as cash for clunkers, extension of unemployment benefits, etc….things already used that have helped the economy in a minor way…there is already some indications of this will be their tactic….like the cash for caulkers, which is suppose to help people spend money on weatherizing their homes and businesses….
Basically, this is an end run, to use a sports analogy, to help the economy to start its recovery…..personally, I do not think this will do all they intend…..the first stim plan should have been used in other ways than they used it……as I have always said…..it is always good to create demand….without it there is NO recovery….
But this is not just an idle issue…..
More than 230 mayors are in Washington for the winter meeting of the United States Conference of Mayors, and many said they had been forced to impose layoffs, furloughs, service reductions and fee increases to deal with falling municipal revenue. The next fiscal year looks even worse, they said.
“We are in the middle of a ‘jobs emergency’ that demands decisive and swift action,” said Elizabeth Kautz, the mayor of Burnsville, Minn., and president of the conference. “We need the Senate to pass a Main Street jobs package now.”
Mayor Kautz is a Republican, and while many Republicans in Congress oppose a second stimulus package, many of the Republican mayors here support it.
The economy is NOT looking good….but is a second stim plan really going to help or just be another massive bailout of gamblers and thieves as the first one was? We have heard lots of lip service about jobs….but where are those jobs?….what sector is employing people? This is just another “gimme” to Wall Street!