Obama’s Stimulus: Smart Economists are Opposed; Dems In Congress Want To “Rahm It Home”

A senior aide to a Senate Democrat told us that Democrats want to give Barack Obama a spending stimulus package early in his preidency, perhaps on inauguration day, by “ramming it home.”

And that coincides exactly with quotes we’ve heard from Speaker of the House Nancy Pelosi.

But a senior U.S. Senate staffer said jokingly the new administration wants to “Rahm it home” — a reference to Barack Obama’s Chief of staff.

In this June 6, 2008, file photo Rep. Rahm Emanuel, D-Ill., ... 
In this June 6, 2008, file photo Rep. Rahm Emanuel, D-Ill., left, huddles with then-Democratic presidential candidate Sen. Barack Obama, D-Ill. in Chicago. Emanuel, the hard-charging No. 3 Democrat in the House, accepted the job of White House chief of staff.(AP Photo/Charles Rex Arbogast, File)

Our question is: if proposed legislation is smart, why not hold hearings, deliberate and show all the American peiople the good ideas of the stimulus plan?

Because it is probably not a good idea. Or it might not be a good idea.

Harvard economist Jeffrey A. Miron says, “According to the textbooks, government spending raises the demand for goods and services. Tax cuts also spur demand by putting more income in the hands of consumers or more after-tax profits in the hands of businesses.  Is a fiscal stimulus good policy? The answer is no if the stimulus consists of increased spending. The stimulus may be good policy, though, if it consists of lower taxes.”

So we think it may be wise to discuss the stimulus some more before “ramming” it into anybody….

“The state of our economy demands swift approval by both the House and Senate of an economic recovery and job creation package. While the House process is still being determined, the House has already laid the groundwork for this package with numerous hearings and the bipartisan package passed in September,” said Drew Hammill, Pelosi’s spokesman.

And we also needed swift action to bailout wall Street and then the auto makers.  And can Paulsen or anybody tell us that the money was well spent.

No, we are starting to think that more government spending just now, called bailout, stimulus or anything else, needs some careful deliberation….

Republican leader in the Senate Mitch McConnell wants to slow the stimulus train down to talk it over and think it over some….

“As of right now, Americans are left with more questions than answers about this unprecedented government spending, and I believe the taxpayers deserve to know a lot more about where it will be spent before we consider passing it,” McConnell said in a statement.

What’s the rush again?

By John E. Carey
Wakefield Chapel, Virginia

House Speaker Nancy Pelosi of Calif. speaks during a news conference ... 
House Speaker Nancy Pelosi of Calif. speaks during a news conference on Capitol Hill in Washington, Monday, Dec. 15, 2008.(AP Photo)

Related from CNN:
http://www.cnn.com/2008/POLITICS/1
2/29/miron.stimulus/index.html

Related:
Obama’s $850B + Stimulus: Go Fast Or Deliberate?

Republican Chasm: RNC Will Condemn Bush Bailouts

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