More bites at the stimulus apple?

Sunday, February 8, 2009 at 03:35PM
Skeptic in Economics, Sub-prime Mortgage Melt-down

Paul Krugman is very worried about the pending economic stimulus package—

Because what's coming out of the current deliberations is really, really inadequate. I've gone through the CBO numbers a bit more carefully; they're projecting a $2.9 trillion shortfall over the next three years. There's just no way $780 billion, much of it used unproductively, will do the job.

Stan Collender explains that neither the regular budget process nor a budget reconciliation bill is subject to filibuster in the Senate and that both are possible in the next few months. He goes on—

My guess is that the Obama administration sees this, sees that it will get credit for even the changed version of the stimulus that is likely to get enacted, understands the political importance of an early legislative victory and, therefore, has decided to take what it can get now and come back for more in other ways in the not too distant future.

And even if that wasn't the orginal strategy, it certainly makes sense now.

Article originally appeared on realitybase (http://www.realitybase.org/).