Friday, November 13, 2009

The Next Stimulus Package

by Bill McBride on 11/13/2009 12:30:00 AM

Earlier this week I mentioned a possible "upside surprise" for GDP in 2010:

With unemployment above 10%, there will be significant political pressure for another stimulus package - especially if the economy starts to slow in the first half of 2010. This next package could be several hundred billion (maybe $500 billion) and could increase GDP growth in 2010 above my forecast.
From The Hill: Senator Reid tees up 2010 jobs bill
Senate Democrats will take up a new job-creation bill in the wake of the 10.2 percent unemployment rate, Majority Leader Harry Reid told his colleagues Tuesday.
And from the LA Times: Obama announces forum -- a brainstorming session on job creation
Next month, Obama said he would gather chief executives, small-business owners, economists, labor leaders and others to discuss ways to create jobs and grow the economy.
It appears the idea of another stimulus package is gaining momentum ...