Obama to Mayors: Use Stimulus Cash Wisely

Bigger deficits are worth the benefits, Fed chair tells Congress

(NEWSER) - Ben Bernanke supported the Obama administration’s economic policy before Congress today, the Wall Street Journal reports. The $787 billion stimulus bill should boost “demand and production” and soften job losses over the next 2 years, the Federal Reserve chief told the Senate Budget Committee. The expansion of government debt required by the stimulus is “unavoidable” Bernanke said, given the consequences of inaction. More»

Federal workforce could expand by 100-250K, experts say

(NEWSER) - President Obama’s ambitious budget and stimulus plans will require the government to hire scores of new workers, the Washington Post reports. Analysts put the number between 100,000 and 250,000 spread among various agencies, the biggest expansion of the federal workforce since Lyndon Johnson’s Great Society days. Some agencies are already planning hiring initiatives; Veterans Affairs, for example, expects to add 17,000 to the payroll. More»

Team searches for ways to bolster economy

(NEWSER) - With economic recovery looking sluggish at best , President Obama is considering a national infrastructure program, alongside a wave of tax cuts for businesses and individuals. Up for discussion are additional tax cuts for small businesses, a possible payroll tax cut for businesses and individuals, and other tax breaks aimed at encouraging businesses to hire, sources tell the Wall Street Journal . More»

(NEWSER) - When the stimulus was in the works, President Obama went to great lengths to show he was sacrificing his top pet project—a clean-coal power plant to be built in Illinois—on the altar of fiscal responsibilities. “It shows that we’re serious,” a rep for Nancy Pelosi said at the time. “There will not be earmarks in this bill.” But the plant is getting stimulus cash after all—$1 billion of it, Politico reports. More»

(NEWSER) - Republicans think they’ve found one chink in President Obama’s armor: public fear over rising national debt. Some 51% of Americans disapprove of Obama’s efforts to control federal spending, according to a recent poll. In every other area, Obama enjoys positive ratings. “The president is still popular, but his policies are catching up with him,” Sen. Lamar Alexander told Politico. “When that happens, it helps us make our points.” More»