Congress, Eyeing Economic Woes, Weighs Another Stimulus Package
Democrats say economic conditions are worst in 50 years, but Republicans accuse them of politicking
On the heels of the financial meltdown that felled Lehman Brothers and Merrill Lynch, expect a showdown in Congress as lawmakers wrestle over the need for a second shot in the arm for the ailing U.S. economy, one costing as much as $68 billion.
House Majority Leader Steny Hoyer said Tuesday that Democrats were assembling an economic stimulus package with money for infrastructure projects, unemployment insurance, help for low-income people to pay energy bills, aid to states to tackle Medicare and Medicaid costs, and possibly job training. Skeptical Republicans quickly labeled it a politically motivated move that would generate an even larger budget deficit.
But the Maryland Democrat said the country was facing the worst economic conditions in at least 50 years. "We believe a stimulus package is called for," he said. "It will be limited, simple, straightforward. It will deal with jobs and economic stimulus."
He would like the House to take up the package by early next week. The clock is running because lawmakers are scheduled to wrap up legislative business September 26.
Hoyer didn't put a price tag on the measure, which has been under discussion for several weeks, though other Democrats said Tuesday it would be in the range of $50 billion.
But a top Republican aide in the Senate said he understood the package could balloon to $68 billion, and characterized it as an election-year ploy. Democrats have a 51-to-49 majority in the Senate and the measure's prospects are iffy there because it would need 60 votes to pass.
Last week, the nonpartisan Congressional Budget Office projected a near-record deficit of $407 billion for the year ending September 30 and signaled it could reach a record $438 billion in the year ahead. "Democrats ran to the microphones to scream about how not paying for things has driven us to the brink," the GOP aide said. "Here we are a week later, and they want to add $68 billion dollars to the deficit."
He noted the items on Hoyer's wish list already receive federal dollars. "There isn't $68 billion in a bank somewhere," he added. "This is all borrowed money." The aide singled out money for roads, bridges, and other infrastructure projects as a "payoff" to unions.
On the House side, the Blue Dog Democrats, who are fiscal conservatives, are eyeing developments amid concern about increasing the deficit.
The package would come on the heels of a $168 billion economic stimulus that saw tax rebates returned to many Americans beginning in April.
Reader Comments
my point of view
I lost my job on oct 8,2007 iv'e been looking for work and i've put in over 60 to 80 applications online and offline at diffrent companies looking for work yes the economy is very bad however i do get unemployment for just $101.00 a week which isn't much when u have alot of bills to pay such as light,car ins,heating oil,telephone bill which i don't have anymore so i just keep my cell phone on ,its hard out here for low income families that's worked very hard in there lifetime like myself .u get tired of being broke all the time on the same note continuing looking for employment.i mean what else is there to do when your unemployment will soon run out and u still not having a job .like myself u just trust in god and let god and let go.i know that he will make a way out of noway he always does.it would be very nice if low income families and middle class could get another stimilus check to support there families and there self.we make way over the amount when we all work and get such little anount of funds,or money,to support our families and our selves.
Low Salaryed Jobs
Ok Im a single parent of four children and I have to pay Rent ,Water ,Lights ,Taxes for everything i cant afford to have gas heat this winter so what Iam I to do just lay back and wait I've been in Management for 13yrs and still at the rate of something that to me is minimum wage just like alot of american people I think that the laws on equal employment opptunities should be changed because you can work and perform a job to the best of your ability for years and one day and employer can come to you and say that you have to be demoted to a lower position without giving you an explanation why and tax breaks the more money you make the less you get back at tax time but 3,000 or 4,000 dollars is nonthing for a tax check for a average working person you work 40-60hrs in a two week span thats nonthing you make more than that in a years time .
I got news for you, the value of the dollar is already down, always has been....The US has borrowed money and probably the only country who's money values less...i'm with the other readers, one million dollars per individual would definitely put the money back into the economy...new jobs, businesses,mortgages being paid off, people buying american made cars, etc. makes perfect sense to me.
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