Schumer: Stimulus Package Will Be Bigger than Obama Wants


Letting Obama Know Who Runs the Show

And so it begins:

“It’s certainly true that we in Congress will have input,” Sen. Charles E. Schumer , D-N.Y., said in a Jan. 9 conference call. But, he added, “The urgency of this economic crisis . . . is going to limit any haggling over competing approaches.” Schumer predicted that Congress would complete its work by a self-imposed Feb. 13 deadline and would enact a package greater than the $775 billion suggested by the Obama administration but still less than $1 trillion.

Nancy Pelosi wants tax increases. Barney Frank (and some other Democrats) want fewer tax cuts. Many Democrats want more infrastructure spending. And Charlie Schumer is already predicting that Democrats will do what comes naturally: spend more to try to accommodate everyone.

The signs are there that Congress is going to take Obama’s proposal and run with it, and send something to his desk that may not bear a great resemblance to what he suggested. This will be the moment that defines his economic legacy. Is he fully engaged to make sure that his crack team of experts and his whip man Rahm Emanuel knock some heads together to keep Congress in line?

Not exactly:

Obama acknowledged that lawmakers and administration officials will continue to “hone and refine” the proposal, even as they press for quick action. “There are going to be a whole host of good ideas out there, and we welcome all of them,” he said Jan. 9. “And we’re going to sift through all of them, and we are going to work in a collaborative fashion with Congress…”

Obama’s economic advisers, including former Treasury Secretary Lawrence H. Summers, met with Ways and Means Democrats on Jan. 9 to try to work through any disputes on the tax package. “He made a presentation, indicated some flexibility. We raised some questions, indicated some flexibility. And that’s kind of where it was,” said Richard E. Neal , D-Mass., a Ways and Means member. They will resume those discussions Tuesday afternoon…

Rangel added that he feels “a little uneasy” that lawmakers will have to make decisions so quickly on such a big bill that will need to satisfy senators, who usually insist on more deliberation. “We have broad latitude to negotiate,” he said. “Our problem is that time is not our friend, that this damn thing is moving so fast and they have so many different pieces to put together.”

This will be a serious problem for Obama, and he clearly doesn’t realize it. As things now stand, Congress is going to rewrite his tax cuts, increase the pork-barrel spending, perhaps add some tax increases, and inflate the overall price tag to nearly a trillion — or perhaps more. And Obama is giving them the green light, and he will have to sign it.


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4 Comments Leave a comment

He WANTS it...

fmaidment (Diary) Friday, January 9th at 9:52PM EST (link)

…because the more money he spends, the more it looks to the uninformed like he is doing something.

Obama’s master stroke here is in realizing that he and his team aren’t creative enough to come up with every possible method of spending money we don’t have to rescue us from a crisis that he and his legislative accomplices helped to create (and really isn’t as much of a crisis as they are leading us to believe).

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“I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it.”
– - Thomas Jefferson, to Archibald Stuart, 1791

 

Has Schumer got a problem with obama?

bobojake (Diary) Saturday, January 10th at 12:41AM EST (link)

I notice Schumer resigned his Democrat position, could that be so he can take pot shots at obama without fear of reprisal. Keep tuned as Reid and Schumer take on obama.

 

It is refreshing to see Obama being thrown under the bus for once

char (Diary) Saturday, January 10th at 2:09AM EST (link)

That is what the congressional dems are doing. I guess they see their chance to spend a trillion dollars on all their pet projects.

 

Remember Jimmah?

Adjoran (Diary) Saturday, January 10th at 7:19AM EST (link)

When Carter took office, congressional Democrats wasted no time in asserting their supremacy. The result was a weakened Presidency with a weak President.

In peacetime the Congress has traditionally been bolder in asserting its authority. Perhaps the luxury of indulging weaker executives which peace affords the electorate contributes to this tendency. Of those Presidents regarded as promoting a strong executive (Jackson, Lincoln, TR, Wilson, FDR, Truman, Reagan, and W), only Jackson wasn’t faced with war or the imminent threat thereof, and he did face the “Nullification” crisis and the Indian relocation issues, whose national security implications were apparent.

Success in Iraq has drastically reduced the scope and cost of the war being prosecuted worldwide, so Obama and the Democrats – not to mention their acolytes among the working press and mindless public – will treat the current situation as being primarily a domestic concern best dealt with by the infusion of rabid government spending. The Congress views every spending bill as a pork opportunity while the President hopes for enough economic effect to ensure his popularity and reelection. Conflict is intrinsic to the moment and the most likely resolution is a bloated bill which accommodates all supplicants.

It is awful policy, of course, and liable to do much more economic harm than good, but it is also the nature of contemporary politics and an insurmountable one when Democrats wield power. We never seem to learn, do we?