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View Diary: Geithner Draws line in sand: No Rate hikes for 2% = No Fiscal Deal. Also, SS off table! (**Video) (259 comments)

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  •  it was full of compromises to the Republicans (3+ / 0-)

    which undermined its effectiveness because Obama thought if he went along with their emphasis on tax cuts (less effective stimulus), he'd get some Republican votes. But the House Republicans who had led him to believe they might support this plan did a Lucy-and-the-football on him and gave him not a single vote.
    I don't know if Geithner was part of the problem or not, but people like Krugman say that although the stimulus bill did some good, it needed to be bigger and have a much higher % of the money going into real activity rather than tax cuts.

    We're not perfect, but they're nuts! -- Barney Frank

    by Tamar on Sun Dec 02, 2012 at 12:35:44 PM PST

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    •  That isn't how I remember it at all. (7+ / 0-)

      The House passed the proposal as offered. The Senate didn't have 60 Dem votes. Susan Collins, Olympia Snowe, and Arlen Specter were willing to vote for the bill if they could amend it. Susan Collins was responsible for changing much of the stimulus to tax cuts, like 40% tax cuts. The Senate then passed it. Additionally, the administration didn't know (because the information wasn't available at the time) how really large the hole was. They came up with that number based on the best information they had at the time. While Paul Krugman said it wasn't enough, he acknowledges that it wasn't the fault of the Obama advisors.

      •  I'll have to do some research because while I (1+ / 0-)
        Recommended by:
        HappyinNM

        agree with the Senate part of what you said, I'm pretty sure that Obama came to the House with a bill that already incorporated a lot of the Republican demands.
        I'll let you know what I find out.

        We're not perfect, but they're nuts! -- Barney Frank

        by Tamar on Sun Dec 02, 2012 at 03:15:33 PM PST

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        •  There are finite ways to stimulate the economy, (0+ / 0-)

          and the Recovery Act had some of every one of them. In your research, check whitehouse.gov. You'll find the Recovery Act is very progressive.

          The sh*t those people [republicans] say just makes me weep for humanity! - Woody Harrelson

          by SoCalSal on Sun Dec 02, 2012 at 06:12:53 PM PST

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    •  Those tax cuts were not mere sop to republicans, (0+ / 0-)

      they were an expedient way to give money to the middle class and low income assistance. The Recovery Act had a good mix of items: green energy, infrastructure, tax cuts, etc.

      Of course more stimulus was needed, still is needed. Former administration officials are on record saying they thought in January 2009 that they'd get more stimulus bills passed. And the administration did propose more stimulus bills that passed the House when Pelosi was Speaker, but didn't pass the Senate, with one exception, as I recall. With that exception, legislators carved out 80 percent of the White House proposal.

      The sh*t those people [republicans] say just makes me weep for humanity! - Woody Harrelson

      by SoCalSal on Sun Dec 02, 2012 at 05:08:17 PM PST

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