This week both House Speaker Nancy Pelosi and House Appropriations Chairman David Obey have made serious reference to an additional package of economic stimulus appropriations this year. Obey says he has already instructed his staff to prepare the outline of another stimulus bill, but would give no timeline for introducing the legislation. President Obama in recent days has said he will "do what is necessary" to rebuild the American economy, but the administration has yet to comment specifically on the possibility or desirability of more emergency appropriations.
While it is possible stimulus legislation limited to extending safety net programs such as health care, food stamps and unemployment insurance could be introduced, it seems likely that a new stimulus package, if and when introduced, will include additional funding for construction projects which were cut out of the first bill in order to make room for tax reductions insisted upon by Republican legislators. Keep your fingers crossed!
In explaining the need to begin drafting another stimulus package before the last one has had any chance to perform the expected turn around, Obey commented: "Prudence would dictate that you would anticipate that you might need other things. It's a simple routine to prepare possible options if you have a next requirement. ... I said from the beginning that we would probably undershoot. The Senate squeezed it by a couple of hundred billion dollars. I regret that, but that's democracy."
Although Chairman Obey did agree to wait to see what effect the first economic stimulus package may have before introducing a second bill, his remarks reveal the hazards of relying on government officials to fix our economy. The House version of the first stimulus legislation would have cost $819 billion; the Senate passed a $787 billion package, which was then adopted by the conference committee and sent to the president for signing. Only in Congress does the difference between $819 billion and $787 billion amount to "a couple hundred billion dollars!"
While it is possible stimulus legislation limited to extending safety net programs such as health care, food stamps and unemployment insurance could be introduced, it seems likely that a new stimulus package, if and when introduced, will include additional funding for construction projects which were cut out of the first bill in order to make room for tax reductions insisted upon by Republican legislators. Keep your fingers crossed!
In explaining the need to begin drafting another stimulus package before the last one has had any chance to perform the expected turn around, Obey commented: "Prudence would dictate that you would anticipate that you might need other things. It's a simple routine to prepare possible options if you have a next requirement. ... I said from the beginning that we would probably undershoot. The Senate squeezed it by a couple of hundred billion dollars. I regret that, but that's democracy."
Although Chairman Obey did agree to wait to see what effect the first economic stimulus package may have before introducing a second bill, his remarks reveal the hazards of relying on government officials to fix our economy. The House version of the first stimulus legislation would have cost $819 billion; the Senate passed a $787 billion package, which was then adopted by the conference committee and sent to the president for signing. Only in Congress does the difference between $819 billion and $787 billion amount to "a couple hundred billion dollars!"
