Wild Guess: Obama to Propose $1.6T in New Stimulus Spending
So consequently Obama is now desperate for another round of stimulus in order to keep the GDP in positive territory and out of an official recession in an election year. The trouble is that Obama can’t spend much without raising the debt ceiling yet again, as AP points out. Hey, it’s real problem. We just went through a debt ceiling fight, raising it another two point whatever trillion dollars and we can’t go back to it too soon. People didn’t want the debt ceiling raised this time. So the AP is wringing its hands and they’re all concerned over the restraints poor Obama faces in announcing his jobs program.
The other problem is that the White House has to find some way to spend enough government money to boost the GDP to over 4% to lower the unemployment rate. I mean they actually say this. We’ve gotta find enough government spending to produce economic growth at 4%. It is a stunning piece of work here. It’s by Jim Kuhnhenn, I think is how he pronounces his name. “Hamstrung by budget cuts and a tight debt ceiling, President Barack Obama is preparing a September jobs package with limited tools at his disposal to prime the economy and crank up employment. At a minimum, the president’s plan will call on Congress to extend current payroll tax cuts and jobless benefits, spend money for new construction projects and offer incentives to businesses to hire more workers.”
So I know that we’re gonna get a request for more stimulus and my number is $1.6 trillion. That’s what I put out there as a wild guess but it’s gonna have to be more than the first stimulus ’cause the first stimulus wasn’t enough, didn’t work. Extension of unemployment benefits, we all know how that stimulates the economy. Oh, yeah. Money for new construction projects, infrastructure, shovel-ready jobs which Obama now laughs about. I guess there weren’t that many. And incentives to businesses to hire more people. We know what that is, too, a $2500 tax deduction or credit for every new hire. But if you do the math on that, only the stupidest businessmen and woman would think that’s an attractive thing to do. What’s it take to hire somebody, just pick a round number, $50,000, benefits, health care, what have you. And you get a $2500 tax credit for doing that? The math doesn’t work out.