Does The Economy Need Another Stimulus?

Face The Nation: Obama, McCain Advisers Discuss What To Do About The Financial Crisis And The Future

(CBS)  Robert Rubin, a senior economic adviser to the Obama Campaign, is calling for a new stimulus package in the wake of the bailout bill passed earlier this month.

The former Treasury Secretary during the Clinton Administration said on CBS News' Face The Nation that he thought an "enormous amount" has been done with the bailout package, but "I think there's a good deal else we can do."

"I think it is imperative that we have a very large fiscal stimulus, although I do think that stimulus needs to be married to a commitment to long-term fiscal discipline, so we don't risk undermining our bond market and our currency market," he said.

Rubin told host Bob Schieffer that the package could include $1,000 tax rebates for families, but also could give help to cities and states running into difficulties and money for infrastructure if it is ready to go right now. Rubin added that the cost could be around $150 billion and that Democratic presidential nominee Barack Obama supports these measures.

"You could do all of that -- and it needs to be done in a very short period of time, in order to stimulate economic demand in a time of a weakening economy," Rubin said.

Douglas Holtz-Eakin, a campaign senior policy adviser to John McCain's campaign and a former director of the Congressional Budget Office, said that the Republican presidential nominee wouldn't take a new stimulus package off the table, but he focused instead on the $700 billion already passed and McCain's proposal to use much of the money to directly buy mortgages from banks and renegotiate them for homeowners.

"If you go back to what he talked about in getting mortgages off people's backs, that allows you to pay your grocery bills, that allows you to pay your gasoline bill. You can keep making your college tuition payments," Holtz-Eakin told Schieffer.

"There's no greater stimulus than keeping American households spending. They're 70 percent of the economy, and so focusing on them, keeping them in jobs, creating new jobs, that's the greatest stimulus of all.

"The idea that somehow tough economic times are a license to spend money on anything you can think of is something that you want to look at very carefully," he added.

Both Holtz-Eakin and Rubin defended their candidate as the best able to guide the country through the tough economic times. The advisers both said the situation could be turned around within months.

"Once you get past the crisis of confidence … you're still back in the kinds of difficulties we've had over the course of the past year," Rubin said. "You've had a lot of damage. You now have very large wealth loss. You've had weakened consumers, weakened financial institutions, problems around the world. There is a great deal that needs to be dealt with, and I do think in that context, public policy will be very, very important.

"And it is absolutely imperative that we have a highly active public policy approach. And I think [Obama] laid out -- not I think, he has -- laid out a very sensible set of measures to take in this respect. But it's going to take very strong presidential leadership," Rubin added.

Holtz-Eakin, meanwhile, criticized Obama's proposal to raise taxes on those making more than $250,000, and also to increase environmental regulation, as bad for the economy.

"A remarkable fact is that in this bad economy … small businesses have created 331,000 jobs this year. Don't raise taxes on them. Don't make their lives harder. And, you know, let's take care of the institutions, the small businesses, the home owners, that have been successful in America. And that's the McCain strategy," he said.

"Senator Obama has promised that, day one, he would enforce the Clean Air Act, treating carbon dioxide as pollutant. That runs the economy from the Environmental Protection Agency. It's a draconian regulatory approach. That's not a rescue for jobs," Holtz-Eakin added. "The question will be, who can most quickly generate jobs in this economy to keep the unemployment rate from spiking so high?"

Also on Face The Nation were Democratic Gov. Ed Rendell of Pennsylvania and Republican Gov. Tim Pawlenty of Minnesota. Both defended their candidate's prospects heading into Election Day next week.

Rendell (left) said he doesn't believe polls showing Obama with a 10-point lead in the state.

"I don't think we've got a double-digit lead. And I think complacency is our biggest foe in Pennsylvania. I've been agitating to get Senator Obama back. He's coming into Pittsburgh Tuesday, Philly on Wednesday. I think President Clinton is coming in," he said.

"Senator McCain and Governor Palin have been virtually living in Pennsylvania. And we need to have our candidates there. And Senator Obama is such a great campaigner. Everywhere he goes, the enthusiasm level goes up dramatically."

And despite polls showing Obama well ahead, Pawlenty stressed how the race isn't over yet.

"If you look at Senator McCain's life, it's an entire story of coming back from adversity and overcoming adversity," said Pawlenty (left). "Does Barack Obama have an advantage in the presidential race right now? Yes. But no one should ever count John McCain out.

"Time and time again, he's overcome and had comebacks in his life that have been incredible. And I think he'll do it again here."

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Read the full "Face the Nation" transcript here.

[patrik1974]

I was opposed to the stimulus checks in 2001 and 2008, along with the $700 billion bailout. If our capitalist economy needs government stimulation, then something in capitalism is not working the way it should. A sound economic should be able to weather downs in the markets, with profits when markets are up. Unfortunately, this is not the case. Instead of saving, Americans spent. Now, sadly, our government feels the need to rescue those, individuals and corporation blinded by greed and excess again. This is absurd. If the economy breaking, let it break. Maybe it is time to try out a new set of wheels, wheels that can absorb bumps, and the occasionally pothole, with profits from prosperous times. If McCain or Obama to be taking tax cuts, once again more glue sniffing. This is what everyone wants to hear, but is this really what is best for your in 5 years or 20 years. The federal deficit is $10 trillion. To talk of tax cuts, without plans to create a surplus or at least balance the balance budget for the fiscal year, is insane. The last guy said his tax cuts would create a balanced budget by 2010, unfortunately, during that time $5 trillion was added to the deficit. And now, 8 years later we want more tax cuts. We can%u2019t even afford what we got and what we want. I guess I will just have my children and grandchildren pay for our excess. Now, that I think about it, maybe when I die, I should just pass on my personal debt to them too.

[antoniof123]

http://www.youtube.com/watch?v=iivL4c_3p
ck
Posted by sommertime6 at 10:07 AM : Oct 27, 2008

So wing nuts are now quoting youtube. Oh this is great are you dumber than dirt or did you work at it.

[concerns47]

Yes, so some can just get by while others put it in savings, no spending for at least a year.

[mytoosense]

Handing Out $600 checks:

* Will NOT Replace Millions of manufacturing jobs paying $50,000 Plus plus per year.

* Will NOT Pay off the thousands of dollars of Credit Card dept the average American carries at rates that would make a Loan Shark smile.

* Will NOT be enough to pay one months rent for the millions of families who lost their home recently.

* Will NOT be enough to pay one months worth of average medical insurance.

If you are one of the fortunate who can afford to spend this money on consumer goods, good luck finding a product made in America.

I predict that the Stock Markets, world wide, will see a sharp solid improvement on November fifth when America and the rest of the world realizes that the folks that brought us this mess are entirely out of power in Washington.

[sommertime6]

If the philosophy of redistributing wealth is a concern to you and you want to know more about where Obama stands on this specific idea, here is a link to an interview with Obama while he was in the Illinois state legislature: http://www.youtube.com/watch?v=iivL4c_3p
ck

[gop_will_win]

Why is nobdy talking about manipulation of the gas PRICES!

The world wide economic slow down has brought down prices per barrel, but to the extent that Exxon/Mobil & Co. are passing the prices down @ the pump I think has more to do with wanting to see corporate friendly McCain in office. Usually they ignored price per barrel reductions as long as they could.

Also OPEC has benefited tremendously from the Oil connected Bush family.

Gas prices plummeting all the way up till election day? Somethings going on.


--------------------------------------------------------------------------------

Posted by joezap5
=========================
Yes oil companies are so happy John McCain is going to be elected they cant lower prices fast enough. Please dont disappoint them come election day.

[oneworldusa]

I could use a $700 billion bailout. Anyone else?

[cjs_cnet_xyz]

What government needs to do is limit the interest that can be charged for credit cards. If the government can loan to the banks at 1% and the banks can charge 20-30% for the money, the economy will not recover for those who have incurred debt through financial hardships. It just exacerbates any recovery for those who have already suffered job losses or other financial problems. To say that banks are no longer allowed to pillage is like getting a stimulus that we don''t really have to pay for.

[pensacola98]

The Commodity Futures Modernization Act of 2000 was proposed by 5 House members of which 4 were Republicans, and 6 Senate members of which again 4 were Republicans. Neither the House of Senate heard debate on the floor before passing it.

After Enron went bankrupt over this loophole, the House and Senate passed the bill to close the loophole that was nicknamed the Enron Loophole, but President Bush vetoed the bill to close the loophole.

The Senator spearheading the Commodity Futures Modernization Act of 2000 was Texas Senator Phil Graham - famous for calling America the "Land of Whiners" who retired from the Senate. Graham is on the top of John McCain''''s list for appointment to the Secretary of the Treasury if McCain wins.

Graham, very popular in the 80''s for the Graham Rudman act to cut government spending over 5 years, a bill that was later repealed after failure to cap runaway spending was seen during the Reagan Era for a trillion dollar military spending history, 5 billion was for a super collider project later cancelled in his home state of Texas.

Graham went largely unopposed in bills that he sponsored. Today, he is credited for the Enron Loophole of the Commodity Futures Modernization Act of 2000 that fulminated into the stock market upsets seen in recent weeks.

Much of Graham''s advice was taken by President Bush and John McCain. Graham also told Americans a few months ago that Americans were in a "mental recession".

[hennighg]

Yes, it does. I recommend outing the neo-cons, putting a little thought into the middle class, remembering that patriotism isn''t cloaking oneself in the flag but DOING something for America, and maybe not do the same ol same ol this time around. I''m middle class. The republicans have nearly ruined us, and I have to bail out rich guys. Obama WILL have to raise money through taxes to remedy the problem and I won''t mind paying them to him. $ that goes to a republican goes to a rich guy.

[hennighg]

Yes, it does. I recommend outing the neo-cons, putting a little thought into the middle class, remembering that patriotism isn''t cloaking oneself in the flag but DOING something for America, and maybe not do the same ol same ol this time around. I''m middle class. The republicans have nearly ruined us, and I have to bail out rich guys. Obama WILL have to raise money through taxes to remedy the problem and I won''t mind paying them to him. $ that goes to a republican goes to a rich guy.

[DCropp]

Holtz-Eakin reminds me of Bush telling Americans they should go shopping to help America after 9/11.

McCain and Palin haven''t been paying attention. Shopping is something we can''t afford. Bailing out irresponsible people who borrowed more than they can afford is ridiculous.

McCain, Palin, and Bush have betrayed my three decades of supporting the GOP. All three of them need to leave politics. Their politics have severely damaged America.

[tired0fthebs]

You know what I changed my mind about Obama! I think he will be better for national security and the economy!

Plus sarah palin $150,000.00 on clothes, most Americans could have bought a home for that amount!

Besides I think Sarah Palin is really a Terrorist

Breaking News: The Terrorist Group AKA Alaska Independent party Calling on Russia to help secede from the Union
www.chilitoz.com
Extremists Mark Chryson and Steve Stoll former leaders of the Alaska Terrorist group AKA Independence Party and friends of Sarah Palin are calling on Russia to help them gain independence from the United States.

Watch video of Sarah palin addressing The Alaska Terrorist Group also known as The Independence party. They are calling for a civil war against the mainland.
www.chilitoz.com

[kailumego1]

Get use to it, in order for the government to provide services to American citizens, it''s going to have to raise taxes.

Why do Americans have such a phobia about taxes?

We are facing a 14 trillion dollar debt, because some idiots have chose to elect morons for presidents e.g. Bush Sr., Bush, Jr., Reagan, etc.

In order to provide services to the American people, Congress, the Senator, and the President need to authorize a tax hike, on those that have been getting away with paying little, for years.

McCain is an idiot, and so are other Republicans, to think a "lazzire faire" style government still works.

The roads, high-ways, over and under passes, etc., are the worst in comparison to Western European countries.

Likewise, the idiot presently in office spends trillions of dollars on an offensive war, while allowing the infrastructure here, in America, to fall crumble, e.g. the levees in Louisiana.

Get over it, in order for this government to run effectively and efficiently taxes are going to have to be raised.

For so long the 3% of America, which hoard the majority of wealth in this country, has sent our economy in a tailspin..

[homespunlady]

Posted by Edward1975 at 06:36 PM : Oct 26, 2008

Bernanke said pretty much what you said BEFORE the first "rebate". and advised NOT doing it IF it went to those that WOULD NOT immediately "SPEND" it.

Unfortunately he was overruled and only about 10 to 15 percent of it was give to that group as a "afterthought" when it was pointed out that the elderly, disabled and poor voted too.

About HALF and in he long run 75 percent was given to "tax breaks" to the wealthy so they could "write-off their latest Hummer as a "business expense" and the rest "trickled down" to the "middle class" who promptly funded their "investments" that recently TANKED.

As Bernnanke WARNED - it was an exercise in futility and didn''t even slow down the CRASH they KNEW was coming until the previously planned date AFTER the election...Immediate greed TRUMPED long term political plans.

NOW, all they have in their arsenal is RIGGED VOTING MACHINES, dirty voter tricks and widespread DISENFRANCHISEMENT - if the EXIT POLLS and POLL WATCHERS are organized well enough MAYBE we can actually have an HONEST election this time and NOT elect a TOTALLY CLUELESS puppet like the last 2 selections.

[windmaster12]

Any One who can still Vote RepugnantCon
After 8 Years of Dumbya Bush''s Ineptitude
Is seriously in need of Therapy.

Bush was left a surplus by Clinton--
Proceeded to engage us in an unnecessary war
of Choice, For shady corporate enrichment--
Gave tax breaks and incentives
To Big Oil, and The GOP Defense Conglomerates!!

Deregulated Wall Street--
Causing unbridled Corporate Thievery--
Then Pulled a Commie Chavez Move by
Socializing the banks , and bailing out the Wall Street Incompetent who brought them to bankruptcy!!!

Left us with Two very expensive ongoing wars--
Created The Greatest deficit in the Nation''s history
Outsourced Millions of US jobs-
Lost our respect throughout the world,
Through Imperialist nation building!!

And still these right wing Bozo''s believe
Bush Mcsame and The GOP did a good job--

The definition of insanity is
To do the same thing over and over
Expecting a different result

Thus the only conclusion is--
The GOP rule over a bunch of Dumba$$ Moron''s
Who will vote for the same Bozo''s who
Left the Country in tatters!!
Time, after time, without accountability!!!

Red State Fever -- Terminal condition
Resulting in brain death!!!

[homespunlady]

Posted by satindermull at 06:27 PM : Oct 26, 2008

???RE: your "mystical" bathroom "throne" dream....
was the elephant dumping TOXIC ACID or something like it to CREATE that GIANT HOLE or just "sitting on it" to HIDE the destruction he created?

[edward1975-2009]

Consumers drive the economy, so any bailout should have been directed with consumers recieving the money. Had they given the taxpayers/consumers the 700 billion that would have stimulated the economy and provided businesses and banks with capital. But they opted to give it to the very idiots who created the problem. Now they wish to pacify us with nonsense.

[satindermull]

First of all, I hope you had a good nap.These Presidential coverage is getting irrelevant when ROME IS BURNING and reporters are wasting time on Mental Hoax.
Bob--You are exception.By bringing Rubin--and MCCAIN''s economic advisor--you tried to inform people--and hopefully calmed a few nerves.BUT others at CNN,MSNBC etc. are wasting time.
So here is true Dream of my friend RALPH RAKIETEN in 2005.
In his sleep,he saw "THE ELEPHANT sitting on the THRONE and DONKEY circling around.Finally the elephant vacates the throne and Donkey jumps on the THRONE and drowns/falls in that BIG HOLE."
Every day,we waste precious time--in NOT STOPPING the HOLE from getting BIGGER--we are making the problem worse.
Please tell Katie Couric-my favorite--to FOCUS on Stopping ROME FROM BURNING TO THE GROUND.

[homespunlady]

Posted by PCreversed at 06:09 PM : Oct 26, 2008

Last I heard, Crawford might be his "official" residence but there''s a much better ranch in Paraguay waiting for him. Guess he thinks it''ll be "safer" when the extent of the damage is discovered.