by CHQ News Staff JAN. 28, 2009 - As President Barack Obama lobbies Congress for his proposed $825 billion stimulus package, conservatives worry about Republican opposition to the plans. "Congressional Republicans appear to be at least somewhat opposed to the stimulus package," says Richard Viguerie, chairman of ConservativeHQ.com, a Web site dedicated to the grassroots conservative movement. "However, many times before, Republican opposition has given way to compromise, which only seems to sugar coat these destructive policies so they're a little easier to swallow." Obama's stimulus package will be his first legislative fight with Republicans on the Hill. A third of the stimulus package is earmarked for tax cuts; however, the bulk of the proposed $825 billion will go to fund one the largest public works projects since the 1950s. The Obama administration claims government spending will create jobs and jumpstart the economy. Critics of the stimulus plan say that the Keynesian model on which the stimulus plan is based has never actually worked. Japan tried similar spending plans in the 1990s with little economic success. Even after running up massive government deficits, the Japanese economy remained virtually stagnant. "We are being asked to believe that a big, trillion or even multi-trillion fiscal stimulus can boost the current macroeconomy," says George Mason economist Tyler Cowen. "If you look at history, there isn't good reason to believe that." John Cochrane, a professor at the University of Chicago Booth School of Business, says that Keynesian economics is now "taught only for its fallacies." Even Keynes himself said in 1942 that public works projects are "not capable of sufficiently rapid organization…to be the most serviceable instrument for the prevention of the trade cycle.” There is also concern that the spending from the stimulus package will not come soon enough—a key requirement for any stimulus plan. According to reports from the Congressional Budget Office, spending in the 2009 budget year amounts to only 8 percent of the total package, with only 41 percent being spent in the first two years. Economists fear the majority of the spending will occur after the economic slump has passed, when spending is not needed. Despite these hurdles, the House may begin debate on the stimulus package as early as today, with a vote coming later in the week. "He wants to hear their ideas. If there are good ideas -- and I think he assumes there will be -- that we will look at those ideas," says White House spokesperson Robert Gibbs regarding Obama's trip to the Capitol. However, conservatives like Viguerie worry that if Obama begins making small concessions to Republicans, it may be enough to give him the support he needs to get the stimulus plan passed. "We don't need compromises," says Viguerie. "We need this stimulus plan stopped dead in its tracks. Unfortunately, big-government Republicans in Congress have a tendency to overlook massive spending increases if distracted by petty deals. We saw a complete dearth of leadership in blocking the $700 billion bailout of the financial industry. Then, Republicans failed to stand up against the bailout of U.S. automakers. Will we finally see some spine when it comes to the $825 billion boondoggle proposed by President Obama?" Obama expects to have the plans finalized by the middle of next month. -30-
Back to the CHQ Exclusives Archive... |
|
 |
|||
 |
 |
||
|
|||
|
|||
|