There’s no question that the economy needs more fiscal or monetary stimulus – Joe Stiglitz said as much today, in no uncertain terms. “It needs to be better designed. It needs to be focused more on returns on investment, education, infrastructure, technology. And if you do those kinds of high- powered investments, the long-term national debt will be actually lower and the growth in the future will be higher,” the economist said on Bloomberg today.
But we know that’s not going to happen. Outside of the state fiscal aid bill, you won’t see many more stimulus measures. And even that cuts some renewable energy loan funds (which Harry Reid hopes to cover with other money from the Energy Department budget) to pay for the package.
So really, the only bill on the horizon that might have a positive economic impact is the small business loan bill. This would provide a bunch of tax breaks for small business to encourage hiring, and would authorize a $30 billion dollar lending fund that could leverage up to $300 billion in private money. While lack of credit cannot be seen as the primary reason for the lack of job creation in the small business sector, with more weight given to lack of sales, small business have had a line of credit problem that’s hurting their cash flow.
Yesterday, the Senate adjourned for a month, but Reid filed for cloture on the bill, and Senators hope to build support over the recess.
Just before adjourning at 10:02 p.m., Reid filed a series of cloture motions to set up votes on the small business bill on Tuesday, Sept. 14. Reid withdrew all pending amendments, reoffered a substitute and moved to block any further amendments.
Reid set up procedural votes on an amendment by Sen. Mike Johanns (R-Neb.) that would loosen a paperwork requirement for businesses, plus another vote on a similar amendment by Sen. Bill Nelson (D-Fla.), and finally a procedural vote on the bill itself.
The votes would start at 11 a.m. on Sept. 14, on the Johanns amendment.
The paperwork requirement was a key element of what the Republicans sought on the bill. Democrats allowed it with a side-by-side amendment. Johanns wants to eliminate 1099 requirements for all vendors from whom businesses buy more than $600 in goods in a year. Bill Nelson’s side-by-side would raise the threshold to $5,000. There are implications in lost revenue for losing the paperwork requirements, and Johanns would solve that by basically raiding money from the health care law, while Nelson’s side-by-side would be paid for with fees on the oil industry. David Rogers has more.
It’s unclear whether either have the votes to pass, and whether this will satisfy the Republicans like George Lemieux (R-FL), who support the bill, to offer cloture.
Basically, this is all that you’ll see on stimulus between now and the elections, and it’s not really stimulus in the sense of new spending that can increase aggregate demand. Prospects look dim on that front.




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“There’s no question that the economy needs more fiscal or monetary stimulus”
Ah, yes, there actually is a question. We can’t spend our way out of this hole. There’s going to be some pain.
I don’t like my tax dollars going to bail out California.
“In a sign that the economy is improving, the number of small and mid-sized business sales in California was 21 percent higher in July than in the same period last year.”
And Chase has tv adverts for small biz that promise goodies for hiring the unemployed.
so one has to ask, “what is really going on?”
And Harry Reid adjourned the Senate as planned, without trying to force the Republicans into any kind of cooperation. I would really hate to have wingnut Angle in the Senate but I would celebrate Reid no longer being in any kind of leadership position.
May I ask why?
The idea is bullshit and will not work because nobody has any money to buy anything. No savvy business person is going to increase inventory and hire new employees when there is little or no demand for the products the business produces.
HELLO, IS ANYONE HOME AT THE WHITE HOUSE?
What a bunch of dumb shits who are too fucking stupid to pour piss out of a boot.
I discovered this doing a search for a sociologist
Check it out…it’s Greenwald at Salon
http://www.salon.com/news/opinion/glenn_greenwald/?story=/opinion/greenwald/2010/08/06/collapse
then, this is what the radical right justification is for continuing supply side economics:
The Cloward/Piven Strategy of Economic Recovery
http://www.americanthinker.com/2009/02/the_clowardpiven_strategy_of_e.html
I gotta go to bed. Got an eye infection. so I’m outta here
Later
hey tinman1967 california doesn’t like paying for your shit either
I would bring up the fact that california only gets .78 cents back for every dollar it pays in federal taxes, but hell you won’t listen.
Anyhow, cheers to Congress for doing the literal least it can do.
shortly before he died…Paul Harvey was the only commentator to address the 14 trillion dollar hole in the economy.
If 14 trillion evaporated… then 14 trillion will have to be injected before we will see inflation.
The dirty little secret of monitary policy is this…
EVERY ADMINISTRATION creates money out of thin air… says we are ‘borrowing’ said funds from the FEd – and then finds ways to keep the liability off the books.
Ever since Jekyll Island – Washington insiders have been trying to find ways to fund their pet projects without the population at large finding out about the ruse.
MONEY IS CREATED OUT OF THIN AIR…. now, today, historically, and forever!
Obama needs to inject 14 trillion in new money into this economy…. or the deflationary downward spiral will consume the nation.
THE TRICK.. is how to keep that money from going offshore.
Multi national corporations are the new Moscow. They are the enemy of this and every local economy. We need laws – NOW – to protect us from the monsters of multi nationalism.
At least someone might invest in american manufacturing since the banks wont.I think it would be a great idea if the gov. gave small low interest business loans and then used the interest it made to put the money back into social security. I think it should use at least ten percent of the interest it makes from the loans it gave out to various corporations for the same purpose. If you were willing to put us all on the hook to save the same people who nearly destroyed our economy then there should be some payoff for us. They decided amongst themselves to raid the funds for various reasons never asking us if we agreed to it. [supposedly "OUR" money] Then they have the gall to cry that the program wont be solvent after the next thirty years. Well, maybe a little competition from the gov. for interest income from loans to small businesses might motivate the banks to do what they are chartered to do. “LOAN MONEY” Everyone says that small businesses are the engine of our economy. So what’s the problem!!? I wouldn’t mind paying a buck or two more for something that says “MADE IN AMERICA” Because now I know how important it is. And all these companies that shipped so many of our manufacturing jobs overseas can sell those goods overseas. As for Harry Reid; I can’t see the people of Nevada trading “DOWN” for someone like Angle who obviously would get eaten alive in the next senate. Right now they have the number one senator coming from their state. That’s no small thing. Especially with his experience.