"President-elect Barack Obama has expanded his goals for a massive federal stimulus package to keep pace with the increasingly grim economic outlook, aiming to create or preserve at least 3 million jobs over the next two years.. Is there such a thing as too much economic stimulation? To be honest, it all seems overwrought to begin with.
The more aggressive target, up from 2.5 million jobs set a month ago, comes after a four-hour meeting last week in which Obama's top economic advisers told him the economy is now expected to lose as many as 3.5 million jobs over the next year. Obama was told that could drive unemployment, currently at 6.7 percent, above 9 percent, a figure not seen since the recession of the early 1980s.
With liberal and conservative economists calling on the government to spend $800 billion to $1.3 trillion to stanch the bleeding, the greater danger to the nation, Obama was told, lies in doing too little rather than too much.
Given that gloomy forecast, Obama last week presented congressional Democrats with a proposal to dedicate $675 billion to $775 billion over the next two years to middle-class tax cuts, aid to strapped state governments and investments in domestic priorities such as infrastructure, health-care technology and education -- a package designed to jolt the economy while deterring further layoffs and putting people back to work."(emphasis added)
Monday, December 22, 2008
Is the economy in danger of being overstimulated? On the heels of massive federal bailouts, giveaways and borderline nationalization of industries, we get this bit of news: