More Bipartisanship, Less Stimulus
by John Nichols
The Nation
February 7, 2009
In order to get the votes of two Republican (Maine's Susan Collins and Pennsylvania's Arlen Specter) and perhaps another (Mainer Olympia Snowe) that were needed to undermine the threat of a GOP filibuster, Reid surrendered $86 billion in proposed stimulus spending. In doing so, the Democrats agreed to cut not just fat but bone, and to warp the focus and intent of the legislation.
The Senate plan is dramatically more weighted than the House bill toward tax cuts (which account for more than 40 percent of the
overall cost of the package). This is despite the fact that there is a growing consensus -- among even conservative economists and policy makers -- that tax cuts will do little or nothing to stimulate job creation in a country that lost almost 600,000 positions in January alone. As French President Nicolas Sarkozy, no liberal, said Friday of countries that opt for tax cuts rather than stimulus: The approach "will bring them nothing" in the way of economic regeneration.
The Senate's increased emphasis on tax cuts comes at the expense of the aggressive spending in key areas that might actually get a stalled economy moving. At a time when smart economists are saying that a bigger, bolder stimulus plan is needed, Senate Democrats and a few moderate Republicans have agreed to a smaller, weaker initiative.
These are the fruits of bipartisan fantasies and the compromises that follow upon them. President Obama, who should have been on television addressing the nation and doing everything in his power to rally support for a sufficient stimulus plan, will be lucky if he gets anything by the President's Day deadline he set. (Even after the Senate measure passes, a difficult process of reconciling the very different House and Senate bills must take place. Then there will be more votes before any legislation gets to the president's desk.)
The White House still wants to advance this measure, as do Senate Democratic leaders. And, considering the urgency of the moment, they are probably right to try to do something. But if the final "stimulus package" proves to be insufficient to jump start the economy -- and if what is left of public confidence in the prospect of turnaround collapses as a result -- this Friday night compromise will be remembered with pained regret.
Please read the entire article at:
http://www.thenation.com/blogs/thebeat/406028/more_bipartisanship_less_stimulus
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