Sunday, February 15, 2009

Stimulus Bill Passes Congress

The Senate on Friday evening passed the $787 billion American Recovery and Reinvestment Act of 2009, which was drawn up, amended and negotiated in record time.

The bill got 60 votes -- the minimum it needed to pass. Three Republicans -- Sens. Susan Collins, R-Me., Arlen Specter, R-Pa., and Olympia Snowe, R-Me. -- voted for it. Earlier in the day, no Republicans in the House voted for the legislation, which nevertheless passed 246 to 183, with just 7 Democrats voting against it...

The Obama economic team estimates the stimulus plan will create or save between 3 million and 4 million jobs.

"We've done something today that's transformational for the nation," said House Speaker Nancy Pelosi, D-Calif., in a press conference after the House vote.

During the House floor debate earlier on Friday, House Appropriations Committee Chairman David Obey, D-Wisc., characterized the bill as "the largest change in domestic policy since the 1930s."...

"No one thinks this is the answer," said House Majority Whip Steny Hoyer, D-Md.

read the CNN story

My thoughts: Keynesianism at its worst. You can't throw money at the problem. Let the market work to repair itself. If the economy experiences a quick recovery, then this will be credited. It the recovery is further delayed and the economy worsens, then the stimulus will be accused of being too small. Either way it is a victory for economic ignorance and a black for the market economy.

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