D’Andrea-Tyson Admits First Stimulus Bill Failed
While Laura D’Andrea-Tyson didn’t admit it directly, she strongly suggested (wink, wink, nod, nod) that Obama’s first stimulus bill failed. Here’s how she conveyed those thoughts:
The United States should be planning for a possible second round of fiscal stimulus to further prop up the economy after the $787 billion rescue package launched in February, an adviser to President Barack Obama said.
“We should be planning on a contingency basis for a second round of stimulus,” Laura D’Andrea Tyson, a member of the panel advising President Barack Obama on tackling the economic crisis. said on Tuesday.
Addressing a seminar in Singapore, Tyson said she felt the first round of stimulus aimed to prop up the economy had been slightly smaller than she would have liked and that a possible second round should be directed at infrastructure investment.
“The stimulus is performing close to expectations but not in timing,” Tyson said, referring to the slow pace at which the first round of stimulus had been spent on the economy.
That last paragraph is as revealing as it is pure BS. The Democrats sold the stimulus as providing a sudden jolt to jumpstart the economy. The Right Blogosphere debunked that within hours of the first stimulus bill being published online. We noted multiple times how the bill was just a bunch of spending that didn’t set intelligent priorities.
I particularly questioned whether the stimulus that passed was important:
Hearing President Obama admit that this bill isn’t perfect is barely worth noting. We KNOW that it isn’t perfect. Passing this bill is a disaster. President Obama saying that we shouldn’t make the essential the enemy of the good is irrelevant. This bill isn’t essential. Most of its provisions are taxpayer-funded payoffs to the Democrats’ political allies.
That’s certainly not essential. Those provisions should be dropped immediately. One time ‘tax cuts’ should be dropped immediately, too. If the goal is creatng jobs, those gimmicks should be immediately replaced with permanent tax cuts for small businesses and blue collar workers.
Frankly, this administration’s credibility is questionable and heading south. Ms. Tyson said something else that’s laughable:
Tyson dispelled concerns about the ballooning U.S. fiscal deficit that is estimated to hit nearly 10 percent of gross domestic product, and its possible inflationary consequences. “The Federal Reserve is not going to allow the U.S. to inflate away its debt,” she said. Asked about the value of the dollar, Tyson said the market was wrong to be concerned about inflation in the U.S. economy, given the amount of slack in most industries.
Right. The Democrats just spent tons of money on things that won’t make American businesses productive or prosperous but we’re asked to believe that that won’t cause inflation? The Federal Reserve dumped $800,000,000,000 into the financial markets’ system, money that isn’t being used BTW, but that won’t cause inflation either?
Inflation will happen. It’s just a matter of how much tightening of the money supply the Fed does when inflation happens. It’s either a matter of sending Obama’s economy into a double-dip recession. At this point, I think that’s a definite possibility.
The Obama administration’s credibility on economic issues is sliding towards nonexistance. It’s only a matter of time before people totally disregard their evaluations and opinions.
Technorati Tags: Economy, Laura Tyson, Recession, Inflation, Federal Reserve, President Obama, ARRA, Credibility, Democrats
Cross-posted at LetFreedomRingBlog