While President Barack Obama gets ready to work out details of job creation during a summit on Thursday, Dec. 3, 2009, the Democrat members of Congress turn their focus to the idea of another stimulus package to save and create jobs. However, some democrats are showing doubt that another federal stimulus package would be able to do the trick.
Would Another Stimulus Work?
The Obama administration has been stressing the desire to create jobs without adding to the deficit, hence the job summit set for early December. Additionally, doubt has been expressed that the first $787 billion stimulus that was presented in February actually had the impact intended. With the nation’s unemployment rate rising throughout the year and, as of the last tally, reaching 10.2 percent, some Democrats believe that there just isn’t enough evidence that another one would succeed to consider it.
Criticisms of the First Stimulus / Case Against Second One
There are a number of criticisms of the first stimulus, as well as against a second one. Here are a couple:
- First stimulus only created government jobs: One criticism of the first stimulus package is that the money didn’t expand too far passed than the government. While government workers were able to keep their jobs at the state level, the move didn’t necessarily spur economic growth. Some of the other industries that received money were only able to produce short-term employment opportunities and due to an overall lack of economic growth would have required constant infusions of public money to continue paying workers.
- First stimulus money isn’t tapped out: Another criticism of the first stimulus – and against creating a second one – is that more than tw0-thirds of the first is still available. Some argue that there’s no point in digging an even deeper hole in the deficit if the first stimulus dollars haven’t even been completely spent.
A third criticism is that some Democrats may want to create a new stimulus package and create new jobs in a hurry so that they can gain points in time for the 2010 elections. In other words, they may be simply trying to create jobs to save their own butts.
Those who argue for the new stimulus dollars, however, like House Speaker Nancy Pelosi, say that the reason taxpayers in particular are angry about the idea of adding to the deficit is because they don’t reap benefits from it. She hopes that by actually adding jobs with new stimulus package, taxpayers will feel better about the ever-growing deficit.
Do you feel that a new stimulus package is the right way to create jobs?