Bloomberg Blasts Congress On Stimulus

The Early Show: NYC Mayor Applauds Barack Obama's Recovery Plan, Chides Lawmakers For Wavering

(CBS/AP)  New York City Mayor Michael Bloomberg, who attended President-elect Barack Obama's economic address Thursday, said the criticisms coming from Capitol Hill demonstrate that Congress doesn’t understand the urgency of the situation.

Legislators never do," Bloomberg told CBS' The Early Show, "because they don't have to make the short-term decisions. That's not the way democracy is structured, whereas the executives - whether it's the president or governors or mayors - do."

Lawmakers are under orders to finish action on Mr. Obama's nearly $800 billion economic recovery plan by mid-February. But already it is plain that a set of serious fissures need to be bridged if the bill is to be completed within five weeks.

Mr. Obama urged Congress on Thursday to "act boldly and act now" to fix an economy growing perilously weaker, even as top Democrats said they dislike key provisions, especially the design of his tax cuts.

Bloomberg said there were parts of the stimulus plan that made sense and parts that did not, but that a decision on the package must be accomplished quickly, because the crisis in confidence by worried consumers is making a bad situation worse, dragging down a wounded economy.

"Every day that you worry, you start pulling back," he said. "You postpone the purchase of that car. You don't make an investment in your business. You say, 'Well, my kid can't afford tuition, so maybe he won't go to college.' You make those kinds of decisions. And Americans are worried; people around the world are worried. Even if you haven't lost your house, you know somebody that did or you heard about it so you're pulling back. Even if you haven't lost your job, you're worried about that."

He applauded President Bush for stabilizing the banking system, and President-elect Obama for proposing bold measures to address the continuing crisis.

"Are we close to a tipping point where a recession turns into a depression?" the mayor was asked.

"Well, nobody really knows that," Bloomberg said, "but the difference is whether you lose your job or the guy next door loses his job.

"I think what you've got to be careful here is there's this big honey pot of money," he said, referring to the nearly $800 billion stimulus package being proposed, which would be piled on to the nation's already-burgeoning deficit. "We've decided to print money, something that legislators can do a little bit and cities cannot do at all."

Bloomberg admitted that he, as Mayor of New York, he has his hand out for federal funds, too. "Sure, everybody wants to use this chance to accomplish their objectives. We need to invest in infrastructure. Roosevelt did it, Lincoln did it in railroads, Jefferson did it in canals, Eisenhower did it in roads. We have to do that, and I'm a big proponent of that, but that's not going to create that many jobs that quickly."

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Click here for analysis by chief political consultant Marc Ambinder
Click here for more analysis from the CBS News team.
Click here for a full transcript of President-elect Barack Obama's speech

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Bloomberg said the first priority should be on supporting small businesses, which he called "the future of this country."

"We've got to find a way to keep the small store in your neighborhood open, to keep the restaurant going, those kinds of things. Number two, we've got to have the municipal bond market open up so cities can do what they have to do."

Despite the griping from both Democrats and Republicans about the size and reach of the package, Bloomberg predicted it would get done.

"In the end, they will all come together. You can't solve any problem without both ends of Pennsylvania Avenue and both sides of the aisle. So there will be a lot of yelling and screaming. Everybody will be against everything, but not in favor of anything. And then in the end they're going to have to figure out what to do."

Democrats such as Budget Committee Chairman Kent Conrad complained openly that many of the incoming administration's proposed tax cuts wouldn't work. Republicans warned against excessive new spending, with both parties signaling the incoming president they intend to place their own stamp on the economic recovery effort.

Conrad, D-N.D., and Sen. Judd Gregg, R-N.H., also staked a firm position against using the economic recovery plan for permanent spending increases, opening a split with House Democrats hoping to use the plan to broaden eligibility for unemployment insurance and boost education spending.

"Doing things that would have a permanent effect when we face trillion-dollar deficits as far as the eye can see is just unwise," Conrad said.

A call for a $3,000 tax break for job creation drew particular criticism in a closed-door meeting, and numerous lawmakers said Mr. Obama had not ticketed enough of his tax proposal for energy.

But there was little or no dispute about the need for action, and Mr. Obama's remarks coincided with a pair of government reports showing fresh weakness in an economy already in recession. An updated reading on unemployment was expected to bring even more bad news on Friday.

"If nothing is done, this recession could linger for years," with unemployment reaching double digits, Mr. Obama said in a speech at George Mason University in Fairfax, Va. "A bad situation could become dramatically worse."

Mr. Obama's aides and congressional Democrats have been at work for weeks on legislation to create new jobs, help the unemployed, cut taxes and aid cash-strapped states. There also are subsidies to help the newly unemployed afford their health care, a big new effort to improve the energy efficiency of federal buildings, and tax credits for business investment in plants and equipment.

The details are closely held and subject to change - and the cost of various components seems to be bouncing around daily in the push-and-pull between the Obama transition team and congressional leaders.

Mr. Obama's chief political strategist, David Axelrod, and incoming chief of staff, Rahm Emanuel, heard plenty of ideas and criticisms during Capitol Hill meetings Thursday.

"There was what one would expect, which is constructive comments," Axelrod told reporters. "I'm not going to characterize it as push-back. I'm going to characterize it as people doing their jobs."

House Speaker Nancy Pelosi, D-Calif., promised lawmakers would cancel next month's planned Presidents' Day recess if necessary.

"We are not going home without an economic recovery package," she told reporters, and Senate Republican leader Mitch McConnell of Kentucky, at a different appearance, agreed that that allowed enough time to get the job done.

About $300 billion of Obama's package would be for tax cuts or refunds for individuals and businesses.

One tax provision would provide a $500 tax cut for most workers and $1,000 for couples, at a cost of about $140 billion to $150 billion over two years. The individual tax cuts may be awarded through withholding less from worker paychecks, effectively making checks about $10 to $20 larger each week.

Democrats emerging from a closed-door meeting of the Senate Finance Committee had little positive to say about the tax cut proposals. Conrad was critical of the proposed break for workers and their families.

"Twenty bucks a week. How much of a lift is that going to give?" he said.

Nor did he sound positive about a proposed tax break for businesses to create jobs - a $3,000 tax credit for companies that hire or retrain workers.

"If I'm a business person, it's unlikely if you give me a several thousand dollar credit that I'm going to hire people if I can't sell the products they're producing," Conrad said.

Republicans noted forecasts of a record $1.2 trillion deficit for the current year and said too much additional spending could be harmful. "We can't buy prosperity with more and more government spending," declared Rep. John Boehner of Ohio, the House Republican leader.

[k_vachon]

The way our country is headed the dollar will devalue so much that we''ll become a second rate economic republic - that''s practically a given. Instead of losing our place in the world perhaps we should just take our medicine, and let the credit markets loosen on their own - forget the bailouts. That way even if a depression happens at least the whole world will go down together and we''ll all have a similar recovery timeline. Otherwise we might have to do something crazy and merge our country with Mexico and Canada in a North American Union for our economic survival.

[guest173]

I think the Republicans have barely any right to talk about spending, they seem to have absolutely no concept of economy and budgets. Obviously the whole print and borrow philosophy stinks, the Dems had a surplus just 8 years ago!!!

[wardoglrs]

The Democracy will cease to exist when you take from those who are willing to work and give to those who would not "TJ"

The Natural progress of things for liberty to yield and government to gain ground "TJ"

"Reform cannot be achieved by a well-intentioned leader who recruits his followers from the very people whose moral confusion is the cause of the disorder." - Socrates


A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine. - Thomas Jefferson

[kuei12]

"I think your suggestion presupposes that a one-time stimulus will work such that businesses will be willing to hire because they forsee the spending trend to continue well past after all the stimulus money has been spent. I think the larger concern of Republicans is balooning deficits with no end in sight . . . "

I disagree. I for one would not go out and blow a $15000 check on shoes and bubblegum. Most intelligent people (not saying most americans are intelligent) would put a couple grand on a car, buy a few trivial items, and then invest let''s say, about $10,000. This type of investment is what america needs most. The ultimate point here is, if the people don''t have money you can''t sell them anything. Of course you need to take into concideration that when stupid americans do buy items they are chinese items or japanese cars, then wonder why there are no american jobs.
Realistically when americans start making right decisions instead of decisions like electing morons to office who couldn''t run a lemonade stand and turn a profit, or thinking you can save america buy buying foreign products, we will always be in this predicament. Americans created this problem. Are they willing to fix it? I doubt it. They are still too comfortable.

[samthetvcat]

---"You mean like, ummm, my suggestion?"---
Posted by kuei12

I think your suggestion presupposes that a one-time stimulus will work such that businesses will be willing to hire because they forsee the spending trend to continue well past after all the stimulus money has been spent. I think the larger concern of Republicans is balooning deficits with no end in sight . . .

[kuei12]

"also make a commitment to offering an alternative that addresses BOTH the problem as well as their concern"

You mean like, ummm, my suggestion?

[samthetvcat]

pt 1

I don''t mind the questions, but if time''s of the essense maybe they can break the bailout down into tranches, starting first with the most pressing or the areas where everybody agrees (?)

I''ve heard conflicting stuff about the business tax cut - I guess there''s no consensus? Is there any historical data of how effective it is in creating new jobs? Is there the potential companies might use the opportunity to lay off older workers and bring in new ones for cheaper AND get a tax credit to boot which really doesn''t help, stuff like that? Would it be better to limit the tax cut relief to areas that might be especially price sensitive like say I don''t know sales because additional sales people also have the potential to generate extra revenue? Like might it be duplicative to give tax cuts in the area of construction if they''re already benefitting from the infrastructure spending?

The stuff I get impatient with are the ideological battles that just never go away - tax cuts boo from the left with no notice of the fact that the payroll one also redistributive and benefits the middle class, deficits boo from the right with no regard for the potential hardship they''d essentially be inflicting on the middle class . . .

[samthetvcat]

pt 2


Maybe everybody should make a commitment to like acknowledging the problem that the piece of legislation is designed to address before they voice the concern that it raises with them, and then also make a commitment to offering an alternative that addresses BOTH the problem as well as their concern.

Otherwise we could really get bogged down (?)

[mrkuren]

kuei12:
The problem is as soon as you do that, you will create the mindset of a welfare junky in many people. While it would provide short term relief to the economy the long term failure of self reliability would be lost. Every time thing get tough after that, people are expecting a handout. Then you have a nation of hobos.

[kuei12]

Here is the problem. If they gave that $800billion directly to hardworking, legal americans it would send a huge buying shockwave throught the united states. Instead they give it to the richest of the rich to be pocketed and hidden. Economics is not THAT hard to figure out. If you want the people to start buying give them the money. If bush had given that $700billion to the people (instead of a few hundred to pay off their gas bill) every legal american, adult worker would have gotten a $15,000 check. Can you imagine what that would have done for retailers?
If you don''t stimulate the people who support the economy you have no economy. Jesus, it''s like i''m talking to my brother in law''s stupid kids.

[kuei12]

"Snap out of it goofball!"


LOL

[mrkuren]

texasbeta :

You hit the nail right on the bloated head.

[texasbeta]

Thanks for proving my point. The government has their fingers in too many aspects of our life. It needs to be whittled down and reminded just who they work for. The government belongs to us, we do not belong to the government. You libs need to remember that.

You''''re the ones that need psych help.


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Posted by GOPHwy71

Snap out of it goofball! WE ARE THE GOVERNMENT! How is this always missed? Do you think we find hobbits or robots from the moon to run the government? YOU are the government. You want a free-market economy? Go to Somolia and Afghanistan. The US has NEVER had a free market economy...we mix a little bit of socialist regulation, and a little capiltalism, and try to keep the GOP from hijacking them both, like the last 8 years.

[gophwy71]

""""where did this trillion dollar debt come from, Think! Think! Think!!!!
Posted by starleo14672 at 01:02 PM : Jan 09, 2009""""

Thanks for proving my point. The government has their fingers in too many aspects of our life. It needs to be whittled down and reminded just who they work for. The government belongs to us, we do not belong to the government. You libs need to remember that.

You''re the ones that need psych help.

[gophwy71]

In our Declaration of Independence, it states, "We hold these truths to be SELF EVIDENT that ALL men are created equal", yet our congress in all their wisdom feel it necessary to make an amendment for civil rights. Now, we are no longer equal, but segregated because the presence of the statute shows the presence of the status. Duplication.

[flsunjnky]

Mistakes are made on both sides, and too much time is spent finger pointing. We need to come together and move forward, no matter how it is that we got here. But the bickering continues, and that slows progress.

[mrkuren]

GOP vs DEMs: Both sides have valid arguments but neither can agree, and neither seems to be able to implement a system that will work, and continue to work. Its because people on both sides are greedy and they will botch any altruistic efforts made by others. The water has been coming to a boil for a long time, and a mass change in acceptance and reason will be needed by BOTH sides to prevent it from boiling over. After all, its in our nature to destroy ourselves, and its not easy to fight your nature.

[flsunjnky]

O.K. GOPHwy71, so how did we get so many "wasteful programs and laws now that they duplicate and/or can''''t be interpreted because they contradict other programs and laws"?

Who do you think has been at the helm for the past 8 years?

[starleo146]

Instead of taking accountability for this mess, conservatives are firing off the latest B.S. storm. Here''''s what you need to know to fire back

Here it is: our moment of economic truth. We''''re standing at that historic fork in the road where the nation decides, now and for the foreseeable future, whether it''''s going to hang on to the catastrophic assumptions of the free-market fundamentalists and rely once more on the nostrums that have so far failed to fix the mess, or take a bold step down a new, more progressive path that will finally re-empower the American people to build an economy that works for us all.

[starleo146]

BTW, until he swears in, he''''s still MISTER Obama.

Posted by GOPHwy71 at 12:06 PM : Jan 09, 2009

Is there a psychiatrist in your town??????