YIPPEE! Hooray for our guys!
Hey, wait just a doggone minute... $780 billion is still a ridiculous ton o'money!
Why, yes, yes it is. And the negotiating and voting isn't over, yet. No, not even close. The bill must pass with 60 votes and Democrats have only 58 Senators. Sixty votes are required to raise the federal deficit. All votes must be cast in-person. Sen. Ted Kennedy is recuperating in Florida after collapsing(swooning?) at the Presidential inauguration lunch. Kennedy has been brain dead for the last couple of decades.
Bloomberg's Brian Faler writes:
“This is our best chance,” said California Democrat Dianne Feinstein, saying the plan “seems to have brought people together.” Senator Kent Conrad of North Dakota, asked how many Republicans are expected to vote for the plan, said, “Certainly enough to win,” meaning, “at least three.”Two days ago, the nonpartisan CBO (Congressional Budget Office) and official legislative scorekeeper, concluded that "Obama's economic recovery package will actually hurt the economy more in the long run than if he were to do nothing" as reported by the Washington Times.
...the House and Senate bills will help in the short term but result in so much government debt that within a few years they would crowd out private investment, actually leading to a lower Gross Domestic Product over the next 10 years than if the government had done nothing.
CBO estimates that by 2019 the Senate legislation would reduce GDP by 0.1 percent to 0.3 percent on net. [The House bill] would have similar long-run effects ...
For every $1.00 of additional debt, the CBO assumes the stimulus package will remove about 30% of a dollars worth of private domestic capital. In the short term, there reduction would not be significant and would benefit the economy in 2009 and 2010.
The agency projected the Senate bill would produce between 1.4 percent and 4.1 percent higher growth in 2009 than if there was no action. For 2010, the plan would boost growth by 1.2 percent to 3.6 percent.Whoa! Those are huge projection gaps 1.4% - 4.1%, 1.2% - 3.6%? Whenever I see experts with percentage spreads as large as these, it's a big indicator that the experts have no clue what they're talking about.
CBO did project the bill would create jobs, though by 2011 the effects would be minuscule.
Smoke and mirrors. Smoke and mirrors.
If passed, the StimPak returns to the House for reconciliation where the same old tired Democrat arguments will be made to increase the dollar total.
Cartoon - Michael Ramirez, IBD.
The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.