Second Stimulus Package Imminent?
Sounds like a sizeable stimulus package to boost the U.S. economy may be on the horizon. From Christopher S. Rugaber of the Associated Press last night:
A group of business executives on Tuesday urged President-elect Barack Obama to “quickly implement” a large stimulus package soon after taking office.
The stimulus package should be more than $300 billion, said the group, which included Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein, Time Warner Inc. CEO Jeffrey Bewkes, and Wachovia Corp. CEO Robert Steel.
“This really was far and away” the top priority, said Roger Ferguson, chief executive of financial services firm TIAA-CREF.
The recommendation follows similar comments made by a top Obama adviser late Monday to the conference sponsored by The Wall Street Journal. About 100 CEOs divided into four groups to formulate recommendations for Obama in different areas, including energy, health care, the international economy and the U.S. economy.
Just what might a second stimulus package consist of? Rugaber wrote:
A second stimulus package should “emphasize investment in infrastructure,” such as roads, bridges and other construction, as well as alternative energy projects, the CEOs said.
The stimulus also should include permanent tax cuts rather than one-time tax rebates, Ferguson said, because permanent cuts are more likely to be spent and to boost the economy.
The AP Economics Writer added that President-elect Barack Obama sees this additional stimulus package as THE top priority. Rugaber wrote:
Days after winning the election, Obama said if a second stimulus package does not get done in the current lame-duck session of Congress, “it will be the first thing I get done as president of the United States.”
Source:
“CEOs want at least $300B stimulus from Obama”
Christopher S. Rugaber
Associated Press, November 18, 2008
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