No quick fix but they want to spend $825B anyway ?   They claim it will 
create 3-4 million jobs.  That's a cost of $200k+ per job.  Better to 
spend $100B on some infrastructure projects and leave the rest in our 
pockets.


==============================

http://biz.yahoo.com/ap/090126/obama_economy.html

AP
Democrats: Stimulus plan no quick fix for economy
Monday January 26, 1:16 am ET 
By Stephen Ohlemacher, Associated Press Writer  
Democrats warn that economy will continue to slide, even with big 
infusion of government aid 


WASHINGTON (AP) -- The White House warned Sunday that the country could 
face a long and painful financial recovery, even with major government 
intervention to stimulate the economy and save financial institutions.

"We're off and running, but it's going to get worse before it gets 
better," said Vice President Joe Biden, taking the lead on a theme 
echoed by other Democratic officials on the Sunday talk shows.

At the end of the Obama administration's first week, the party in power 
at both ends of Pennsylvania Avenue sought to lower expectations for a 
quick fix despite legislation expected to pass by next month that would 
pump billions of dollars into the economy. Democrats also opened the 
door for even more government aid to struggling banks beyond the $700 
billion bailout already in the pipeline.

Congress has given President Barack Obama permission to spend the second 
$350 billion of a Wall Street bailout package even though lawmakers have 
criticized the Bush administration for the way it spent the first half. 
House Speaker Nancy Pelosi, D-Calif., said she is open to additional 
government rescue money for banks and financial institutions. But she 
said taxpayers must get an ownership stake in return.

Biden said Obama's choice for Treasury secretary, Timothy Geithner, will 
recommend whether more money is needed for the banks. Geithner could be 
confirmed by the Senate as early as Monday.

Congress is working on an $825 billion economic recovery package that 
dedicates about two-thirds to new government spending and the rest to 
tax cuts. Separate proposals making their way through the House and 
Senate would combine tax cuts for individuals and businesses, help for 
cash-strapped state governments, aid for the poor and unemployed, and 
direct spending by the federal government.

The goal is to infuse money directly into the economy in the hope of 
bringing the nation out of recession, while creating 3 million to 4 
million jobs. It would be largest economic recovery package ever 
enacted; the White House says the scope rivals the construction of the 
interstate highway system after World War II.

Its success or failure could define the first years of Obama's term. On 
Sunday, Democrats sought to temper expectations, at least in the short 
term.

"These problems weren't made in a day or a week or a month or even a 
year, and they're not going to get solved that fast," said Lawrence 
Summers, a top economic adviser to Obama. "So even as we move to be as 
rapid as we can in jolting the economy and giving it the push forward it 
needs, we also have to be mindful of having the right kind of plan that 
will carry us forward over time."

Republicans want the recovery package tilted more toward tax cuts and 
have questioned whether government spending programs will revive the 
economy in the short-term.

"I just think there's a lot of slow-moving government spending in this 
program that won't work," House Republican leader John Boehner of Ohio 
said. "We can't borrow and spend our way back to prosperity."

The administration has pledged to spend three-quarters of the proposed 
money in the first 18 months after it is approved.

Obama met with Republican and Democratic congressional leaders at the 
White House last week to listen to Republican concerns about the 
package. Obama plans to meet with more Republican lawmakers this week, 
though Boehner said there is little support among House Republicans for 
the package in its current form.

A House vote is expected Wednesday. Democrats, if united, have a large 
enough majority to pass it without GOP backing. But Obama is seeking 
bipartisan support on this critical early test of his presidency. Senate 
Republicans could block the package but they would have to be united to 
do so.

Summers said Obama has inherited the worst economy since World War II, 
coupled with a federal budget deficit of more than a $1 trillion and 
soaring costs for entitlement programs such as Social Security, Medicare 
and Medicaid. The nation lost a total 2.6 million jobs last year as the 
housing market contracted and financial markets collapsed.

The government he said, can afford to spend more than $1 trillion to 
boost the economy and save financial institutions. But he warned that 
fiscal discipline will be necessary once the economy recovers.

Summers said Obama would end President George W. Bush's tax cuts on 
those who make more than $250,000. Pelosi has said she wants to repeal 
the tax cuts well before they expire at the end of 2010.

Obama might be willing to simply let them expire, Summers said, though 
he was noncommittal. He did say Obama will fight any effort to extend 
the tax cuts beyond their expiration date.

"The president has made clear that the question of timing is one we're 
going to have to reach as we see how the economy unfolds," Summers said. 
"But they're not going to be with us for long."

Republicans argue that the government shouldn't raise taxes on anyone 
during tough economic times.

Biden appeared on CBS' "Face the Nation," Pelosi was on ABC's "This 
Week," and Summers and Boehner spoke on NBC's "Meet the Press."

CMPQwk 1.42-21 9999 
Democrats --  The party of economic destruction ....


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