Obama Stimulus Package Could Grow To $850 Billion

By: Scott Conroy
Topics: Economy

Though President-elect Obama is taking some time off to spend with family and work on his golf game in Hawaii, CBS News correspondent Chip Reid reports that the president-elect's advisers are working overtime on a massive government spending plan that is getting bigger by the day.

Sources on Capitol Hill told Reid that the stimulus package could grow to at least $850 billion, which is about double the cost, in today's dollars, of the interstate highway system and more than the United States has spent on the Iraq war.

With consumers not spending, and more and more businesses laying off workers, some economists say there's no alternative.

"Government is the difference between a bad recession and very bad depression," Mark Zandi of Moody's told CBS News.

But deficit hawks on the Hill and some conservative economists argue that continuing to throw money at the economic meltdown will only make it worse.

"It didn't work the first time, it's not going to work this time," said J.D. Foster of the Heritage Foundation. "The only thing that it has in common is that it's going to leave us with a hangover."

Democratic leaders are hoping to move the stimulus package through Congress at rapid speed. They want to have it ready for Mr. Obama's signature about ten days after he's sworn in as president.

Scott Conroy
Scott Conroy is a National Political Reporter for RealClearPolitics and a contributor for CBS News.
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by jt_lancer December 23, 2008 11:54 PM EST: Junipera1 - ''Are Americans not worth the investment?''

And where will this money come from? A magic government money tree? Government CANNOT ''invest'' ANYTHING without first disinvesting somewhere else (like the private sector).

Government cannot create wealth out of thin air.; Reply to this comment


by jt_lancer December 23, 2008 11:52 PM EST: payasyougo - ''With that logic, how about make it 200 Trillion and we can all just retire.''

Exactly my point. It is a fraudulent scheme.

Government CANNOT magically help the economy with ''stimulus'' without DE-STIMULIZING the private sector from where the money comes.; Reply to this comment


by payasyougo December 23, 2008 10:05 PM EST: "If $850 Billion in ''''government stimulus'''' will ''''help'''' the economy, why not make it $3 Trillion and REALLY help the economy."
----
With that logic, how about make it 200 Trillion and we can all just retire.; Reply to this comment


by junipera1 December 23, 2008 6:29 PM EST: Why was it OK for Bush to squander $800 billion at a whack on the war in Iraq, but no OK for Obama to spend a similar amount to jumpstart the US economy. Are Americans not worth the investment?; Reply to this comment


by rwassel December 23, 2008 2:37 PM EST: First off, nowhere did he say that "balanced budgets are out the window". But he has taken the very realistic viewpoint that going from a deficit of almost a TRILLION DOLLARS (left behind by this administration) to a balanced budget or a surplus won''t happen overnight.

But you''re not even going to give him a chance to try. Sounds like you''ve already made up your mind about this administration, before it''s even began. How patriotic.; Reply to this comment


by jt_lancer December 23, 2008 1:45 PM EST: rwassel - ''Give Obama some time to fix the last eight years of bloated spending and reckless behavior that has endangered our country.''

HOW? With more bloated spending and reckless behavior? Are you serious? He has already said that balanced budgets are out the window. What a freaking hypocrite.; Reply to this comment


by rwassel December 23, 2008 1:37 PM EST: The Obama economic team has no idea how to grow the economy.They keep throwing money in the wrong direction."

Posted by jtmangum49

Really, professor? You talk like he''s already president, and has been for sometime. NEWSFLASH, Einstein: Bush is still in charge. Any money that has been thrown anywhere has been under HIS watch.

So simmer down, and give Obama some time to fix the last eight years of bloated spending and reckless behavior that has endangered our country.; Reply to this comment


by cynm1 December 23, 2008 1:36 PM EST: Where did the bailout money go???
After receiving billions in aid from U.S. taxpayers, the nation''s largest banks say they can''t track exactly how they''re spending the money or they simply refuse to discuss it.
"We''ve lent some of it. We''ve not lent some of it. We''ve not given any accounting of, ''Here''s how we''re doing it,''" said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. "We have not disclosed that to the public. We''re declining to.
"
The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what''s the plan for the rest?
None of the banks provided specific answers.; Reply to this comment


by jt_lancer December 23, 2008 1:04 PM EST: If $850 Billion in ''government stimulus'' will ''help'' the economy, why not make it $3 Trillion and REALLY help the economy.

What the politicial elites refuse to inform the dumb masses of is that any government ''stimulus'' results in a private sector DE-STIMULUS.

The government does NOT have its own money, folks. Every dollar it gets comes out of the pockets of those who work for it and earn it.; Reply to this comment