Obama talking about Stimulus Package
Meanwhile, unemployment figures don't look good. Jed L. has a good post in DKos today, Compromising One Million Jobs...Or Is It Two?
It's worth checking out his post which includes a useful chart, but here is the gist of his argument:
The so-called "moderate compromise" in the Senate cuts $140 billion in spending from the stimulus legislation, but leaves in place between $300 billion and $350 billion in tax cuts.
This is important, because it's not just how much they cut, it's what they cut.
According to the CBO's conservative estimate, for every $140,000 increase in GDP, one job is created. The CBO also projects that stimulus spending -- not tax cuts -- has the biggest impact on GDP.
The multiplier for stimulus spending generally ranges between 1 and 2.5, meaning for every $1 spent between $1 and $2.50 in additional GDP is generated. In contrast, the multiplier for tax cuts for the wealthy is 0.5 -- or less. (See the last page of this pdf from CBO for their full list.)
So what does that mean for the Senate "compromise"? It means it will generate between 1 million and 2.5 million fewer jobs than the original proposal.
If Congress ultimately passes the Senate compromise without dramatically improving its effectiveness, they will be making President Obama's job even tougher than it should be.
Congress should follow the President's lead -- this is a time to be bold, not cautious. This is a time to do something that works, not cave in to the failed ideas of the past.
Huffington Post carries a good story on comparative job losses in this recession from past downswings.