Obama's Stealth Stimulus: $250 Checks to Seniors

Obama hasn't expanded spending—and that's too bad

(NEWSER) - The Obama presidency has mobilized hundreds of thousands of conservatives to clamor against the "big expansion of government spending," but said expansion simply didn't happen—and that's the problem, writes Paul Krugman for the New York Times . The president hasn't created new benefits for the poor, large new infrastructure projects aren't underway, and health care reform has yet to kick in. "Where’s all that spending we keep hearing about? It never happened." So why does everyone think it did? More»

(USER SUBMITTED) - Jim Surowiecki, writing for the New Yorker, says that the Obama stimulus package worked surprisingly well. Yet, Surowiecki notes, Obama gets little credit for it because he did the economically, rather than politically, expedient thing. Rather than lump-sum tax rebates, which consumers tend to horde, he gave taxpayers a small break in every paycheck, which they spent—stimulating the economy. By giving money to the states to retain jobs, rather than create new ones, he maintained stability and reduced unemployment. 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»

Beware the 'tight-money people' who fear short-term spending

(NEWSER) - Paul Krugman assesses the economic mess in Greece and sees "no good answers" for them but an important lesson for America. Namely, "steer clear of deflation," a horrible process that Greece must now endure because it's stuck with the euro. We don't have that problem, so let's "stop all this "grandstanding and penny-pinching over short-term spending to help a distressed economy," he writes at the New York Times . More»

To cut deficit, we have to cut benefits to seniors

(NEWSER) - Economists are none too impressed with Barack Obama's proposal to send each senior a cool $250, and David Leonhardt can see why. The over-65 set has weathered the recession better than anyone—many of them purchased real estate well before the housing bubble burst, and few work in the most-battered industries, like construction—which makes the decision to dole out $14 billion to them "pure pandering,” a co-director of the Tax Policy Center tells Leonhardt. More»