By Any Means Necessary: Stimulus Package Needed Soon

The reaction to president Obama's stimulus package, now in the hands of policy makers on Capitol Hill, appears to be largely dependant on political ideology. Members of the president's own Democratic Party are in favor of the bill for the most part with the exception of some notable dissenters.

For those opposed to the bill, the reaction has been visceral, it has been stark and it has been complete. This demarcation along party lines of an issue of such critical importance and time sensitivity is saddening, maddening and clearly sobering. After the initial euphoria of the post election period and the presidential inauguration, reality bites.

Despite the fact that members of the republican opposition expressed optimism that the president was willing to reach across the isle in what appears to an outside observer as a good faith effort to get the bill passed, no yes votes from that side of the isle has been forthcoming. Now the bill, at least the Senate version, has become political football and has grown to $920 billion and mounting.

For the good of the country, lawmakers, if anything but out of recognition that the nation is teetering on the brink of economic disaster, need to act. If ever there was ever need for a kum ba yah moment in American economic history, it is now. If ever there was time for the majority of law makers to rally behind the elected leader as was the case immediately after the events of September 11, 2001 it is now. We have seen the weapons of mass destruction and we have witnessed their detonation over the past few months. The fallout has bought severe economic hardship to millions of American households. Indeed, the fervent response of most lawmakers to the former president's call to arms was crucial in thrusting the country into wars on two different fronts in two distant lands. That zeal needs to be rekindled as the war is now on continental USA. It is an economic war and it is being waged in every municipality, in every city, in every state. It is being waged on the assembly lines of US automobile manufacturers fighting to stay alive. It is being waged in the living rooms of the unemployed who cannot find work and the psyches of the soon to be unemployed that recognize that the future is grim.

While it is clear that negotiation for the bill's passage is necessary, the longer this process takes, the worse the situation becomes as the economy is deteriorating on a daily basis. This bill, or any bill for that matter, will not be perfect. But those imperfections can be addressed later and dealt with accordingly. The time to act is now! The economy is taking on water fast and we are almost out of lifeboats.

In the event that common sense ultimately prevails, and a stimulus bill is passed, then there are a number of companies which are well positioned to benefit immediately. This is due to the fact that in order for a stimulus to be effective, much of the spending would have to be done in the very near term. These include such industry leaders as URS Corp (URS), Flour (FLR) and Martin Marietta (MLM).

Disclosure: None

Comments

[PastTense:]

If the U.S. had a policy of running surpluses when times were good, a policy of running deficits when times were bad would be a reasonable counter-cyclical policy.

But it is clear the U.S. does not; that instead there is a bi-partisan consensus of ever-increasing deficits. Right now the baby boom generation is at its peak earning years. Shortly that generation will be retired causing massive budget deficits via Social Security and Medicare.

A strategy of more and more "stimulus" combined with these Social Security/Medicare deficits; this policy of "let's mortgage the next generation" is going to lead to a catastrophe of hyper-inflation.

Feb 08 10:52 AM

[Steve0:]

I've been a republican all my life. Now I question my thinking because of the zealous partisan behavior of the republican Senate and House during this critical time. Sure there may be a better plan out there but at what price is the party willing to pay on the back of working Americans. If the republican leadership is not willing to replace their partisan rhetoric with a demonstrable focus on the working class of America, I for one will be changing my political orientation. How many others in this party are the republican willing to lose because they are not willing (capable of) to work with the new administration?

Feb 08 12:18 PM

[Obama is Bu...:]

During the last 40-50 years, each political party has (at various times) controlled Congress, the White House or both. We've had economic booms and recessions.

As the first commenter (pasttense) points out, they ALL run deficits. Bigger and bigger and bigger deficits.

Clinton supposedly ran a *budget* surplus, but this was basically an accounting quirk and not reality. The government has taken to claiming all sorts of costly items "don't count" -- of course you can run a balanced budget if you don't count your biggest expenses! Looking at things more accurately, Clinton -- like everyone else-- ran a huge *spending* deficit

So recently, The Bush administration wasted $750 billion in TARP money accomplishing nothing other than racking up more debt for our kids to pay. The Democrats step in last month and show small minded people that they "care more" by spending a slightly bigger amount ($850 billion) of our kids money. Only small minded people believe that a politicians "caring" should be measured by how much money they throw at us.

The government has no credible means to spend $850 billion intelligently. There aren't that many shovel ready projects-- so Congress is allocating the money to state governments... how many times have we heard this song before? The states have demonstrated, decade after decade, an ability to spend vast amounts of money on waste and fraud. The "big dig" in Boston was supposed to cost $3.5 billion and had been planned for many years -- it went years over schedule and eventually cost $14 billion. This "stimulus" nonsense was planned for less than two months -- how can anyone suggest with a straight face that this money will be spent better?

And as if anyone really needed further proof that nothing much has changed in Washington, the administration is warning about the end of the world if we don't pass their spending program immediately and without thought-- very George Bush like, except this time it is Barack Obama.

More proof? The Congressional Budget Office (CBO) is controlled by Congress (ie democrats), meaning a majority of the "unbiased economists" were hired by Democrats... The CBO has said that Obama's stimulus package will HURT the economy over the long haul
www.washingtontimes.co.../

New faces in Washington, but they are up to the same old tired and discredited "spend, spend, spend" policies as the last 50 years.

Feb 08 02:26 PM

[mauijeff:]

Do you really have any faith in a stimulus or partisan politics? This false republican/democrat stuff should be apparent to everyone by now. The stimulus won't work because the economy has changed. PEOPLE DON'T WANT TO TAKE ON DEBT and go back to the old broken ways. The economy is based on consumption. It will take a restructuring of the economy to get us out of this, not a stimulus.

Feb 09 07:13 AM

[Reagan Fan:]

MauiJeff, it is nice to see at least one person here gets it. Many Americans will finally become savers and learn to live within their means. This will devastate the economy for at least 10 years. The world will also realize what I have known for 20 years. The U.S. government has never intended to pay off the national debt. Now they couldn't even if they wanted to.

Feb 09 11:20 AM

[zorkfin:]

This is not a financial article but an op-ed.

Feb 09 12:06 PM

[frflyer:]

Obama is Bush part 3

"The CBO has said that Obama's stimulus package will HURT the economy over the long haul"

If you are talking about the same CBO report that Sean Hannity keeps harping on,

THERE IS NO SUCH REPORT

The CBO did start a study in a very limited way and has said themselves that the report does not exist and the partial study they did means nothing.

No Obama is nothing like Bush. Thank God

Feb 14 12:55 PM

[frflyer:]

Sean Hannity kept using this talking point a week after other networks disclosed that the report did not exist.

Feb 14 01:08 PM

[sabre_jenn:]

frflyer -- Obama is Bush Part 3 provided a link to an article in the Washington Times detailing the CBO report. He/she never even mentioned Sean Hanity.

You need to read comments more carefully and refrain from partisan rants


On Feb 14 12:55 PM frflyer wrote:

> Obama is Bush part 3
>
> "The CBO has said that Obama's stimulus package will HURT the economy
> over the long haul"
>
> If you are talking about the same CBO report that Sean Hannity keeps
> harping on,
>
> THERE IS NO SUCH REPORT
>
> The CBO did start a study in a very limited way and has said themselves
> that the report does not exist and the partial study they did means
> nothing.
>
> No Obama is nothing like Bush. Thank God

May 14 09:02 PM