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SUNDAY, NOVEMBER 22, 2009

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Palin Pulls in Big Bucks
—for Democrats

'Going Rogue' boosts Dem fundraising to new high

Nov 21, 09 6:50 AM CST
demagogue alert

Lawmaker Paints Target on Barack Obama's Back

Republican Rep. Louie Gohmert panders to dangerous paranoids

Nov 21, 09 9:08 AM CST
Billboard Links Obama to Jihad

Colo. car dealership wants this opinion heard

Nov 20, 09 8:42 PM CST
HE'S GOT A BOOK OUT, TOO

Beck to Unveil
'Big Plan' at
Saturday Rally

Righty pundit OK with destroying Dems and GOP

Nov 20, 09 8:07 PM CST
the big plan

Beck Will Host Conventions
to Educate America

He's shifting toward political organizer, plans big DC rally

Nov 21, 09 5:06 PM CST
Senate Democrats Clear
Health Care Hurdle, 60-39

Reid gets 60 votes to open full debate after Thanksgiving recess

Nov 21, 09 7:13 PM CST
Neglected Ind. Fans Boo Palin

Hecklers accuse her of 'quitting on the job'

Nov 20, 09 3:50 PM CST
Reid Gets 60th Vote:
Holdout Lincoln Agrees

She'll allow health care bill to move forward; vote at 8pm

Nov 21, 09 1:51 PM CST
Limbaugh's Wrong: Gallup's Obama Approval Below 50%

New survey is latest disappointment for President

Nov 20, 09 2:03 PM CST
Obama's Stimulus Finally
Gets Some Respect

Warring economists agree that it has helped—if not enough

Nov 21, 09 6:21 AM CST
showtime: 8pm

All Eyes on Blanche Lincoln in Cliffhanger Senate Vote

Mary Landrieu and Ben Nelson expected to back health reform in first vote

Nov 21, 09 7:24 AM CST
SURPRISE, SURPRISE

Sullivan Back; Still Hates Palin

Calls her book 'manifesto for the imagined life'

Nov 19, 09 8:49 PM CST
India Miffed By Obama's Bond With Beijing

Perceived slights complicate PM Singh's DC visit next week

Nov 20, 09 6:30 PM CST

|NEXT STORY »

ROBERT REICH

Hey Blue Dogs, We Need a Second Stimulus

Rising unemployment makes it essential

By Nick McMaster| Posted Nov 4, 09 5:51 PM CST|

(Newser) – The ever-worsening employment situation demands a second stimulus, writes former Labor Secretary Robert Reich. Yes, the first stimulus is only half-spent, but the remaining programs won’t affect mounting job losses. Blue Dog Democrats, worried about the deficit and 2010 elections, will be hard-pressed to support a second round, but Obama can corral them with a simple truth: if the employment picture doesn’t improve, their chances for re-election are shot anyway.

Obama should tell the Blue Dogs that “the economy needs a bigger stimulus in order to show improved job numbers by the mid-term elections,” Reich writes for Salon. “He should make sure they understand that they're more politically endangered next November if the the job numbers aren't moving in the right direction by then than if they vote for a larger stimulus now.”

[Images (3)]

[Quotes (1)]

In this Tuesday, July 21, 2009 file picture, Rep. Mike Ross, D-Ark., center, speaks to the reporters after a Blue Dog Democrats meeting with President Barack Obama at the White House in Washington. (AP Photo/Alex Brandon)

Henry Waxman, D-Calif., speaks after he and other Blue Dog Democrats met with President Barack Obama Tuesday, July 21, 2009, at the White House. (AP Photo/Alex Brandon)

President Barack Obama speaks at Wright Middle school in Madison, Wis, Wednesday, Nov. 4, 2009. (AP Photo/Pablo Martinez Monsivais)

View larger images >>

« Prev« Prev | Next »Next » Slideshow

The administration's biggest economic mistake so far was to badly underestimate last January how bad the employment situation would become by fall. As a result, it low-balled the stimulus. - Robert Reich

« Prev« Prev | Next »Next » Slideshow

11.20.09

The Health-Care Wars Have Just Begun

11.19.09

Sarah Palin Deserves Some More Attention

35 comments

VIEWING:

dontlikeyou
Nov 4, 09 5:56 PM CST

There will be no second stimulus. After last nights losses, the dem moderates will bail on Obama in great numbers. Obama is nearing lame duck status very quickly. Reply

IN RESPONSE:

Chudluv
Nov 4, 09 6:02 PM CST

Yesterdays election does not have any bearing on if and when the Government comes up with the Second Stimulus. Like it states, losses in job's willl have some if not bigger picture on any election.... This right and left crap doesn't mean anything when you are in line at the unemployment line trying to find a job and there isn't any.... Take that into account in your ramblings...

IN RESPONSE:

emptycalm
Nov 4, 09 6:05 PM CST

Oh yes and everyone is going to run back to the GOP and then everything in the world will be perfect just like the 90's! The moderates ditched the GOP for the dems. The dems are letting them down too. So why in the hell would moderates go back to the GOP at this point? It's illogical. With that being said, I doubt anyone, even a majority of democrats, would support another stimulus.

IN RESPONSE:

gspirit7373
Nov 4, 09 6:50 PM CST

Every election counts especially when conservatives oust liberals. Obama is a stooge and puppet. He is more like a CEO of America then the president, he is an incredible joke. I just hope that the next person that runs this country is worth it cause I did vote for Obama the first time and I won't the second and I won't vote for anything Democrat either.

-1

IN RESPONSE:

northeast
Nov 4, 09 6:57 PM CST

@ emptycalm: because voters are idiots. Of course, they could buck both parties and vote outside the box, but that would just be too much to ask.

IN RESPONSE:

Spudsy
Nov 4, 09 7:02 PM CST

So the right gets two governors and the left gets a congressman's seat that has been GOP forever and the right thinks it won? No.

IN RESPONSE:

doingtherightthing
Nov 4, 09 8:26 PM CST

nows the time to stick it in there face. No second stimulus. They gave our money to Acorn, turtle trails and pet projects for demorats. They did not spend it on creating jobs as promised...... Tolls you lost yesterday, big swings in the elections to the right. The independents, thats me, kicked your butts out yesterday, and we'll continue to kick your butts out in 2010 and 2012.........The liberals in the republican party are also history. There is change coming and its going to hit you trolls right between your liberal eyes.........

IN RESPONSE:

dax
Nov 5, 09 12:06 AM CST

@dontlikeyou (wrote): "Obama is nearing lame duck status very quickly. " --- If true then he can join you in your "lame duck" status as a non-credible poster of purely propaganda drivel.

IN RESPONSE:

Timinator2K
Nov 5, 09 7:50 AM CST

STILL waiting for the so-called first stimulus to stimulate. The cure for a recession is much like the cure for the common cold. The illness will abate in 7 days if you do nothing but suffer...and in about a week if you take every med under the sun.

| 0 minutes ago

Enoughie
Nov 4, 09 6:25 PM CST

...because if the stimulus failed twice it will surely work the third time... Reply

IN RESPONSE:

Enoughie
Nov 4, 09 9:31 PM CST

I don't understand why this administration (and what seems to be a consensus among people who have no real understanding of economics) thinks that the only way to fix our problems is by wasting our money on investment banks and companies who were (and still are) irresponsible and unsound, and temporary work projects. It's a shame that there is no republican/democrat out there who understands and promotes the principles of the free-market. The government should have allowed the irresponsible banks and companies to fail!... instead of throwing hundreds of billions of dollars to save them. It should have also established a "temporary federal bank" (with $1-1.5 Trillion), and allowed businesses to borrow from it and small investors to invest in it. That would have given businesses more liquid capital, and therefore more production, and much less unemployment (most of the unemployment would have been from the failed banks and companies - instead of hundreds of thousands of workers per month that are the result of business contraction due to lower capital liquidity). What we have now is bailed-out banks who are only making money by hiking fees on customers (so we are paying for their irresponsible behavior from our taxes and our income!), and not allowing businesses to borrow - this is absurd! But that IS the function of banks - banks are institutions who take on a calculated risk and make money by the diff. in interest rates between what they lend (mortgages/loans) and borrow (deposits). So now this "spread" is enormous, because they need to make up for the irresponsible risks they took with sub-prime mortgages and high-risk derivatives... because of that businesses cannot borrow much, can't increase production (and therefore cannot hire more workers). Another "stimulus" wouldn't help unemployment. What we need is a framework that would allow businesses to borrow. If no bank can do that - we need to force the banks we bailed out to expend borrowing, and if they refuse to demand the bailout money back, and establish with it a "temporary federal bank" to do the job. That's the only way to get the economy and employment back up

IN RESPONSE:

Jayster999
Nov 4, 09 10:04 PM CST

Great post. Unfortunately, most of the people here are more interested in partisan bickering than in realizing the depth of how badly we've been screwed over by BOTH parties, and set our sights on demanding accountability from our leaders.

IN RESPONSE:

dax
Nov 4, 09 11:57 PM CST

Enough already !!!!! Your post hits the wall when you sing praises to the "principals of the free market", another overly and improperly referenced concept, like "The Constitution." ---- There IS NO free market and NEVER has been. There is only the biological imperative of commercial organizations to pursue self-perpetuation by engaging in monopolistic behavior, sometimes under the pretext of "free market" as they put some "body english" on the government framework. ---- And your call for a "temporary federal bank" ???? The Libertarian-leaning members of the Right are going to choke on that concept. Kind of like being a little pregnant, you are or you aren't. You are going to support federal government intervention or you aren't. Make up your mind.

IN RESPONSE:

dax
Nov 5, 09 12:00 AM CST

@ Jayster - thumbs up on the accountability issue, thumbs down on your own lack of accountability for owning up to "partisan bickering" = a net of zero thumbs.

IN RESPONSE:

riffran
Nov 5, 09 1:15 AM CST

I got it...it made sense....

-1

IN RESPONSE:

Timinator2K
Nov 5, 09 7:51 AM CST

Third time's a charm...or, another BUST.

IN RESPONSE:

Enoughie
Nov 5, 09 3:19 PM CST

@ dax: if the only thing you got out of what I wrote is "principles of the free market" we're in deep trouble. The problem is that these days the trend is to blame neo-liberal policy for the crisis and make new regulations. These new regulations will do nothing good to the economy, because it wasn't deregulation that caused the crisis - the problem is in our corporate culture... where people thought that they can act irresponsibly, make huge short-term gains, and remain unaccountable for what happens next. Instead of discouraging this behavior the government is REWARDING it through the bailouts!! And then we're wondering why Wall St. hasn't changed. Well, why should it change? It got exactly what it wanted!... Since the government is intervening anyway I would rather have an intervention that is short and effective (instead of long, wasteful and ineffective). If private banks had enough capital to allow businesses to borrow - even better. But unfortunately this is not the case, since most of our banks were irresponsible in the first place. I don't care if it's a temporary federal bank, or at the state level - I just want it to be effective in helping the economy recover by helping businesses in borrowing - production --> employment. So honestly, if you're concerned for the Libertarians on the right, do you really think they prefer another useless stimulus package?!?

| 0 minutes ago

susanai
Nov 4, 09 6:25 PM CST

I want to see 'fact checker' groups following closely what Christie and McDonnell do. I think there is fat chance of that. Reply

-1

| 0 minutes ago

divetrader
Nov 4, 09 6:28 PM CST

If the stimulus is about propping up banks again when they refuse to pass it on to consumers, why would anyone support a new stimulus package. They should only vote for a stimulus that works from the bottom up. Reply

| 0 minutes ago

Netstorm2k9
Nov 4, 09 6:42 PM CST

But I thought the recession was over? Reply

IN RESPONSE:

gspirit7373
Nov 4, 09 6:53 PM CST

Ohhh....of course it is...I mean Obama fixed it he passed that Massive stimulus it...ummm..fixed it...yea, what a great guy..-scarcasm-

IN RESPONSE:

Spudsy
Nov 4, 09 7:03 PM CST

I thought it was over when Bush saddled us with TARP.

-2

| 0 minutes ago

cedarkey
Nov 4, 09 7:19 PM CST

Hey blue dogs, don't listen to the stump. Pelosi and the far-left extremists hate you. Take a stand against these idiots. Be a leader. Reply

| 0 minutes ago

freethemall
Nov 4, 09 7:42 PM CST

At the risk of being repetitious, let me reiterate: Until the economy fully recovers from it's worst down turn since the Great Depression, there will not be enough revenue generated to reduce the deficit. Worrying about the deficit when the economy is in the tank, is like worrying about wasting water when trying to put out a fire. If it takes another stimulus to bring the economy around, we should not hesitate to enact one. Reply

-2

| 0 minutes ago

Doctor_Zaius
Nov 4, 09 8:41 PM CST

Maybe if the Republicans hadn't watered down the first stimulus so much we wouldn't be having this conversation. Reply

-1

IN RESPONSE:

godawgs
Nov 4, 09 8:48 PM CST

maybe if they spend some of the first stimulus we wouldn't be having this conversation....

IN RESPONSE:

freethemall
Nov 4, 09 9:10 PM CST

Spot on, Doctor Z. The stimulus should have been at least twice as big, with a large portion going to the states, so that no state would have had to lay off workers, cut services, or raise taxes. The problem now being that the band aid (insufficient stimulus) is being blamed for the continuing hemorrhage.

-4

IN RESPONSE:

thejoint00
Nov 5, 09 11:37 AM CST

Watered down?! We are sitting at close to 2 trillion dollars of combined efforts of stimulus money as it is. What is going to take? Artificially inflating the economy with the idea that it will stimulate effective real growth is outrageous. There may be some minute growth underneath but the artificial stimulation has to remain high in order to keep the system from failing meanwhile the whole economy remains sick and the problem areas never repair themselves because they are hidden. The truth is that they grow daily and the longer they go unchecked the more devastating the true recession will be.

| 0 minutes ago

dax
Nov 5, 09 12:03 AM CST

No more talk of further stimulus until the first one has been distributed, and until a direct line can be drawn between the proposed cash outlays and the intended effects desired. Reply

| 0 minutes ago

Reader65069154
Nov 5, 09 7:22 AM CST

Lets see... as of Monday's unemployment numbers, the first stimulus created 640k jobs, but 526k are still unemployed, at a cost of $150 billion: net 124k jobs. That's $1.2 million for each job. Maybe if we spent $500 billion, we could create 400k jobs at just over a million a job... what an improvement that would be! Just keep spending like there's no accountability! Reply

IN RESPONSE:

thejoint00
Nov 5, 09 11:52 AM CST

wow. the government has to spend $1.2 million for one job. it hardly seems like the jobs are worth that price. It seems to me that the people working these "created" jobs should consider themselves lucky if they are paid 1/10 of what they cost. $500 billion hardly seem like it would be enough though considering each president has already spent well more than $730billion($730 billion-Bush's TARP/ $737 billion-Obama's BailOut not including GM funding) a piece and the economy is still in it's current condition.

| 0 minutes ago

freethemall
Nov 5, 09 9:30 AM CST

What I said about the stimulus being at least twice too small seems pretty radical, but I bet if something like it had been enacted. with a large portion going to those who would likely spend it, we wouldn't have unemployment approaching 10% at the present time. The economy is said to be in recovery. Technically speaking I suppose that is correct, but it may be at least a decade, if it ever happens, that we approach full employment again. That's good for employers, since a pool of the unemployed, pressures those who do have the jobs, to do more for less, since they are expendable. This is the real reason Republicans now claim to be so worried about the deficit. They weren't worried about it when they pushed through a huge tax cut disproportionately favoring the wealthy, shortly after George W. Bush was appointed President by the Supreme Court. Reply

| 0 minutes ago

thejoint00
Nov 5, 09 12:02 PM CST

the core of the economy is getting worse and worse by the day. The more it is artificially inflated, the greater amount of true value is lossed. For every day that this artificial stimulation continues, the shift toward reduction to the true size of the economy will become more devestating. we should sacrifice and deal with the hardships now rather than trying to puth them off for another day. Reply

| 0 minutes ago

ROBR
Nov 5, 09 12:54 PM CST

Robert Roach is the sleaziest thing I have ever seen. He can make your skin crawl, simply by viewing his picture. He has the distinction of being the only succesful recipient of the transplantation of spincter muscules to his face to move his lips. Though successful,some persistent side affects include the way his lips stay in a small wrinkly little circle, the constant foul odor that surrounds him and the ever present stain, similar to chewing tobacco juice, on his chin, oh yea theres also all those flies. But I digress. This article shines a Zenon powered light on the extent of the douchebaggery attitude that permeates the ranks of prominent progressives, and the "ASS CLOWNS" entire adminisration, including the Czars. They beat the drum for another dose of government Viagra immediately. Not to grow the economy or relieve the anguish plaguing the country.It is needed now, simply to save their asses in next years election. While this former Labor secretary/ current advisor states for the record " Yes, the first stimulus is only half spent,but the remaining programs won't affect mounting job loses. He is too dumb to realize he just incriminated his whole crowd, while urging them to steal more money we don't have. This in the same week all the "ASS CLOWNS" elves are out and about lying about how great results to date have been and the best is yet to come. What the F was the first package for? They owe the Republican leadership, as well as the American people an apology, for ridiculing us, when we dubbed first round the "PORKULUS" spending fund. The centerpiece of their plan is extend unemployment for another 14 weeks n perpituity, and the Republcans are in denial and the party of no. Please wake up and smell the reality, before it's too late. Reply

| 0 minutes ago

Derni
Nov 5, 09 1:12 PM CST

Only the weak and unenlightened will run back to the GOP-I'll checkout the independents-if any GOP cnadidaites are clothed in the independent clothing then I'll avoid them and if the Dems don't follow thru avoid them-Americans want something niether the GOP or orhter political groups can offer-honesty-integrity- and having them work for the Good of the poeple and not their re-election..time to clean house and start over no matter what the cost..now that would be change! Reply

| 0 minutes ago

View all 35 comments »

Barack Obama • employment • deficit • unemployment • Robert Reich • Blue Dog Democrats

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Hey Blue Dogs, We Need a Second Stimulus