Senate Stimulus

It appears that the senate wants to weigh in on the economic stimulus package. The House version Pilosi negotiated with the White House will only stimulate the most well off. Look at this graph to see who gets the money. If the idea is to stimulate the economy give money to the poor and hungry. They will buy food. This bill will give little economic stimulus. It will give tax breaks and let the republicans claim they did something.

The Senate is thinking about extending the unemployment benefits 13 weeks or in states with 6% unemployment 26 weeks. This is a good idea. They will buy food pay rent keep the economy going. Food stamps would help.

I would like to highlight these graphs from Robert Greenstein.

• Of all tax and spending stimulus options that CBO examined, the only two that it found would have a large “bang-for-the-buck” as effective stimulus and act fast to boost the economy are the unemployment insurance and food stamp provisions. Both could start injecting more consumer purchasing power into the economy within one to two months. The planned tax rebate checks, in contrast, are not likely to be sent out until June.

• Economy.com found that for each dollar spent on extended UI benefits, $1.64 in increased economic activity would be generated. For each dollar in increased food stamp benefits, $1.73 in new economic activity would be generated. No other options rated as high.

• In contrast, Economy.com found that for each dollar in “accelerated depreciation” — the main business tax cut in the package — only 27 cents of increased economic activity would be generated. CBO and a Federal Reserve study in 2006 found that the business tax cuts adopted in the last recession, which closely resemble those in the current package, had only modest stimulative effects. Despite this evidence, the package apparently contains at least $50 billion in business tax cuts while excluding unemployment insurance — the single measure most focused on the people hardest hit by the downturn — and food stamps.

The democratic party has ideas that will stimulate the economy. Republicans want tax breaks that are ineffective. Who do you want to handle the economy. Republicans are wining that the democrats better not delay their give away to the wealthy.

"I don't think the Senate is going to want to derail this program," Treasury Secretary Henry M. Paulson, Bush's pointman on the deal, told CNN on Sunday. "And I don't think the American people are going to be anything but impatient if we don't enact this bipartisan agreement quickly."

But Senate Majority Leader Harry Reid, D-Nev., has said the Senate would consider adding to that plan, including extending unemployment benefits, boosting home heating subsidies, raising food stamp benefits and approving money for public works projects.

Bush and the republicans are going to whine about anything that will help the American people,because they hate them, you see.