24 November 2009

The Stimulus Is Dead, Long Live The Stimulus! Democratic Efforts To Pass New Stimulus Concedes That Prior Stimulus Has Failed

Here are your current choices:
Republicans -- caused it.
Democrats -- can't fix it.

The Hill: Dem lawmakers shift their focus to jobs package, away from economic ‘stimulus’

Double-digit unemployment and acknowledgment that the $787 billion stimulus hasn’t done enough to create work has fueled Democratic momentum for a new jobs initiative.

House Democrats are hesitant to label the new legislation another stimulus ahead of the December debate.

Republicans have tried to cast doubt on the stimulus jobs number and have seized on the high unemployment rate to argue that Democrats are ineffective stewards of the economy.

Despite continued support for the massive package of spending and tax cuts passed earlier this year, many liberals have begun to question the direction of those dollars amid reports of more Americans out of work.

White House economists said in January that the jobless rate would peak at about 8 percent if the stimulus were to be enacted. Without the stimulus, the jobless rate would peak at about 9 percent, the White House economists said in the build-up to passing the measure.

But the unemployment rate reached 10.2 percent in October, and the National Association for Business Economics released a report Monday predicting that the jobless rate wouldn’t start falling until the second quarter of next year.

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