The failure of the stimulus bill has had at least one good effect: it has reduced the incentive for Congress to vote for new stimulus spending.
Obama's latest plan is totally consistent with that jobs report showing that the only activity being "stimulated" is government spending. The new stimulus is designed, not to increase private employment, but to save the jobs of people employed by the state governments. Think of it as a bailout for California and New York and other state governments that binged on taxpayer money during the boom times.
This is facing resistance from Democratic congressmen who realize that the first stimulus bill was enormous unpopular. But rather than reject a bailout for spendthrift state governments, they are instead suggesting that the money for these government workers could be diverted from unspent funds left over in the first stimulus bill.
"Dems Balk at Obama's Call for $50 Billion in New Stimulus," Susan Ferrechio, Washington Examiner, June 14
It's no surprise that Republicans are denouncing a new request by President Obama that Congress pass $50 billion in new stimulus spending aimed at boosting the economy and avoiding widespread government layoffs. But even top Democrats seem less than enthusiastic about pushing a new stimulus bill to deficit-wary lawmakers and signaled they may not able grant Obama's wish.
House Majority Leader Steny Hoyer, D-Md., appearing on ABC's "This Week," said he has asked the White House to look for unused money in the $800 billion stimulus bill rather than ask Congress for new spending….
Hoyer told Tapper, "I think it's accurate that there's spending fatigue, not only on Capitol Hill, but around the country."
President Obama sent a letter to House and Senate leaders, asking Congress to pass legislation that includes $50 billion in aid to state and local governments that he said will otherwise have to lay off teachers, firefighters, and other critical workers….
House Republican Conference Chairman Mike Pence, R-Ind., said on CNN's "State of the Union" that Obama needs to come up with a new tactic for solving the nation's economic crisis.
"We need to abandon this spending approach to stimulus, adding to deficits and debt, and we need to provide immediate across-the-board tax relief for working families, small businesses, and family farms," Pence said.
