President Elect Barack Obama has promised that he will do “whatever it takes” to stimulate the economy. While he hasn’t laid out the entire plan, Obama has put an economic team in place to begin work on a stimulus package.
Calling the potential package “costly” (imagine that!), Obama refused to put a price tag on the plan, only saying:
We have to make sure that the stimulus is significant enough that it really gives a jolt to the economy.
Obama did not say whether the plan would include immediate tax cuts or rollbacks for the Bush tax cuts. He did indicate that the package would include proposals meant to create jobs, with the goal of adding an estimated 2.5 million jobs.
There were no signs that Obama would include a bailout for the Big Three in the package, though Obama generally agrees that some aid for the automakers is needed. Obama agreed with Congress that the automakers could come back with a workable plan before help was extended, saying, “I think Congress did the right thing, which is to say, ‘You guys need to come up with a plan and come back before you are going to get any taxpayer money.'”
What else was noticeably missing from Obama’s remarks? Any sign of a second stimulus check. Remember, a stimulus package is not the same as a stimulus check. And despite reports to the contrary, there is no plan to issue a second stimulus check before the end of year. Even if Obama were inclined to include a second stimulus check in his stimulus package, he is not the sitting President, he is the President Elect. Any serious proposals to issue a second stimulus check by the end of the year would have to come from President Bush (not going to happen) or the lame duck session of Congress (also not going to happen).
With that, don’t expect any serious economic proposals for individual taxpayers until January, though there is a possibility we could see something happen for the Big Three by the end of December. We may also see more “rescues” for the banking industry – the bailout of Citibank today, combined with Obama’s Treasury pick, sent stocks soaring. The Dow Jones and S&P together experienced the best two-day rally since 1987, a sign that confidence in the markets may be on their way up (or not, I’m trying to be optimistic!).
1st check didn’t stimulate the economy. sending a 2nd check would be no better. make a plan that works.