Jan 23, 2009 3:31pm

Today’s Q for Gibbs

TAPPER: The president wants this (stimulus) package to be bipartisan and he wants it to be stimulative. But when it passed out of the House Appropriations Committee on Wednesday, not one Republican voted for it. And there are lots of elements of this bill that economists say are not stimulative. There’s $726 million for after-school snacks, $50 million for the NEA, $44 million to repair the USDA, and $200 million to work on the National Mall, including grass. Does President Obama think that what passed under the House Appropriations Committee on Wednesday was bipartisan and was stimulative?

GIBBS: There’s no question that the president believes that the bill is stimulative. Our analysis of the legislation right now is that 75 percent of this money will be spent in the next 18 months to create jobs and to get people working and to get the economy moving again. Absolutely, it’s stimulative. It puts money back in people’s pockets that we believe they’ll spend and help the economy. Look, I don’t want to get into this or that vote count in certain committees. This is a — as I said, this process is long and one that will wind through many curves. The president looks forward to working with members of Congress from both parties to ensure that it happens.

– jpt

User Comments

Hmmm I thought Orszag said 75% of 40% is stimulative.
Which leave open the question of why we are spending the other 70% of the money.

Posted by: BertieW | January 23, 2009, 4:16 pm 4:16 pm

who cares? its payback time and i hope obama and the liberals tax (and spend) 200% of the money the rich fatcat republicans have boosted over the last 8-10 years.

Posted by: koi | January 23, 2009, 4:18 pm 4:18 pm

Thank you for asking, Jake.

Posted by: MayBee | January 23, 2009, 4:24 pm 4:24 pm

There’s $726 million for after-school snacks, $50 million for the NEA, $44 million to repair the USDA, and $200 million to work on the National Mall, including grass.
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After-school snacks also involve after school personnel employment after hours. 726 million dollars to feed schoolchildren in programs which are badly needed, isn’t frivolous- and least of all to children. The snacks themselves could also stimulate the vending companies providing them. The National Arts endowments along with stimulating culture in communities also provides employment for those in the arts. Restoration of the National Mall creates added employment also, and lawn maintenance shouldn’t be relegated to something insignificant. Is there really a lot in the package that doesn’t stimulate the economy?

Posted by: kathy | January 23, 2009, 4:24 pm 4:24 pm

It is not enough to just lay out the noted categories of expenditures without knowing the fine print of how they are to work. For instance, California’s schools are running out of money for their nutrition programs–would the $726 million be used in this way? And, if so, are other states included?
$50 million for NEA–National Endowment for the Arts or ??? Are there jobs being funded?
$44 million “to repair the USDA.” Repair the infrastructure? Repair or improve the processes by which our food supply is protected? What?
$200 million to work on the National Mall. Are there “shovel ready” projects to begin immediately, rehab construction, creating jobs, including the now trampled lawn?
Jake, can you interpret from documents what your figures really mean? I would appreciate it. Thanks.

Posted by: Colorado Dem | January 23, 2009, 4:26 pm 4:26 pm

“Afterschool Meals: $726 million to make all states eligible to participate in the Afterschool Feeding Program for At-Risk Children and to encourage participation by new institutions by increasing snack reimbursement rates. Currently, only eight states (Delaware, Illinois, Michigan, Missouri, New York, Oregon, Pennsylvania, and West Virginia) are authorized to provide suppers in afterschool care programs through the Child and Adult Care Food Program (CACFP). Expanding at-risk afterschool suppers to all states will allow institutions currently serving snacks under this component of the CACFP to expand their services to include an evening or weekend meal to an identified population of children in need.”
Suppers?

Posted by: BertieW | January 23, 2009, 4:33 pm 4:33 pm

Let me just expand on my mockery.
If you borrow a dollar and spend it you will obviously raise your country’s GDP by a dollar.
If you have spent the dollar on some make work project like digging a hole and filling it in then there is no residual value to the spending- in Yr 2 your dollar doesnt show up in the GDP.
If you spend the dollar on something that does have residual value to the economy like the Erie Canal or the Hoover Dam, then your country’s GDP will increase in Yr2, Yr3, Yr4 etc…
You will also have to likely pay maintenance on the facilities you just built, but if they were worthwhile in the first place then they will still be a net add even after you pay the reoccurring costs. If not, then you have just created a millstone.
The dollar you spend today will actually cost you something like $2 because you have to pay it back with interest. If you spend $875B, then at some point you are taking 1.75T back out.
So you cant just expand the definition of ‘stimulus’ to any thing where you spend money and it shows up in the GDP. If there is no residual value, no GDP multiplier greater than 1:1 then you are just digging yourself father in the hole.

Posted by: BertieW | January 23, 2009, 4:50 pm 4:50 pm

Not a great question, Jake. While bipartisanship is dandy, its not a cover for a party to sulk and obstruct the operation of the country. The constitution mandates that a bill passes a committee/congress with a majority of votes. It says nothing about the political affiliation of those votes. So no need to dwell over how many republicans/democrats vote for this bill and that bill.

Posted by: Question | January 23, 2009, 5:02 pm 5:02 pm

koi, you must have done pretty well over the last eight years you have a computer.

Posted by: Lizzie | January 23, 2009, 9:19 pm 9:19 pm

What do kids do when they go home from school? Head to the fridge. Why not feed or make food available to the kids that are being tutored or they are taking a prep course for an exam.
It is an investment. As well as school breakfast.
The National Mall project could qualify as a construction or rehab project. It is necessary.

Posted by: r-dub | January 23, 2009, 10:44 pm 10:44 pm

“Let me just expand on my mockery.”
Bertie-I didn’t find it an expansion of mockery, but a convolution on the Gross Domestic Product. It is determined annually by a basic formula:
GDP= gross investment + government spending+ (exports-imports).
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“If you borrow a dollar and spend it you will obviously raise your country’s GDP by a dollar.”
The formula above is straightforward and doesn’t involve borrowing.
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“If you spend the dollar on something that does have residual value to the economy like the Erie Canal or the Hoover Dam, then your country’s GDP will increase in Yr2, Yr3, Yr4 etc…
You are concurring that infrastructure and public work projects have a stimulus effect. Though again, the GDP is not a retroactive computation.
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“The dollar you spend today will actually cost you something like $2 because you have to pay it back with interest. If you spend $875B, then at some point you are taking 1.75T back out.”
Interest rates have nothing to do with the annual GDP, which is increased by stimulus without any debt factoring. That doesn’t minimize the significance of the interest on deficit, it simply has nothing to do with it. The GDP is a basic formula figured out annually. You have engaged in a highly subjective and inaccurate interpretation of it to illustrate political points.

Posted by: kathy | January 24, 2009, 1:07 am 1:07 am

To Kathy and all those so in favor of schools offering after school snacks and supper programs. What ever happened to parent involvement with their children? Our values are so low, it brings tears to my eyes. We need a change in how parents raise our future generation or our problems will never be fixed. We want government to take care of our children until suppertime? Parents should work on improving the quality of the horrible nutrition offered by our public school systems instead of asking for more of it to pollute our children.

Posted by: Michelle | January 24, 2009, 6:26 am 6:26 am

“There’s $726 million for after-school snacks, $50 million for the NEA, $44 million to repair the USDA, and $200 million to work on the National Mall, including grass. ”
Any spending on goods or services produced in the USA is stimulative. In fact, the programs above would be more stimulative than the same amount spent on tax cuts (the tax cut might not be spent, which would reduce its stimulative effect).

Posted by: Sid | January 24, 2009, 10:04 am 10:04 am

The Arts Mean Business. In 2007, the arts provided 5.7 million US jobs and account for $166 billion in economic activity annually.
Specifically, the arts/entertainment industry is the second largest U.S. export category, just behind defense products. Ironic isn’t it.
Because arts industries are by nature, fragmented, no single organization’s demise threatens the greater economy and claims headlines. But thousands of organizations, and the state of America’s arts ecology, are in danger.
If you don’t think the arts are an integral part of our economy, you are sadly mistaken.

Posted by: Philip M | January 24, 2009, 10:46 am 10:46 am

The arts in the United States provide 5.7 million jobs and account for $166 billion in economic activity annually.
It is our nation’s second largest export, behind defense products.
This sector is at serious risk and must be larger part of an economic stimulus package.

Posted by: Philip M | January 24, 2009, 10:49 am 10:49 am

To Kathy and all those so in favor of schools offering after school snacks and supper programs. What ever happened to parent involvement with their children? Our values are so low, it brings tears to my eyes. We need a change in how parents raise our future generation or our problems will never be fixed. We want government to take care of our children until suppertime? Parents should work on improving the quality of the horrible nutrition offered by our public school systems instead of asking for more of it to pollute our children.
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First of all, parental involvement has decreased because of economic realities. Both parents are wage earners, many exceeding a forty hour week to make ends meet. Taking care of kids till suppertime? That’s very relative to a family- after school programs provide a source of safety and increased educational opportunities for the working family, whose parents are able to pick their kids up after work. After school daycare programs outside the school tend to be extremely crowded without ample supervision and also expensive. Providing support to families who need it hardly indicates “low values,” nor is providing adequate nutrition in schools. The studies correlate academic achievement and nutrition in an indisputable way. You sound fortunate in your parenting situation, but apparently, have difficulty seeing after school programs in a perspective outside your own.

Posted by: kathy | January 24, 2009, 11:38 am 11:38 am

kathy: “First of all, parental involvement has decreased because of economic realities. Both parents are wage earners, many exceeding a forty hour week to make ends meet.”
Maybe parents should just live within their means? My parents made less than 20k a year (more on the lines of 16k). My dad worked and my mom stayed home to take care of me. Somehow we didnt go wildly into debt and still managed to eat and we always had a place to live. Maybe we just didnt feel the need to drive a Mercedes around and then complain about the economy? Most recently I made about 33k a year and sent my wife to college, and supported us financially all on my own. Why? Because I lived within my means. This whole two jobs crap to make ends meet is because people spend more on a lifestyle they neither need nor can afford. Parental involvement and personal care of their children far more important than a salary. The government should not even attempt to raise our children, and the very thought that they are trying to should send warning bells to any parent that loves their child and truly cares about how they are raised. Would you let a stranger off the street rear your children? If not, why would you let the government?

Posted by: Phillip | January 24, 2009, 1:59 pm 1:59 pm

Great question, Jake. Keep up the good work.
The stimulus bill contains way too much stuff that is by no stretch stimulative. And when they assure us that 75% of the money will be spent in the next 18 months, as if that’s okay, I want to remind them that given the enormity of the numbers being tossed around, 25% of this spending bill is a huge amount of money. If it doesn’t get spent in the next year and a half, it is not going to have an effect on the present recession and does not need to be in this bill. And I’m really disturbed that only 3% of the money is dedicated to infrastructure, after all Obama’s emphasis on that area. Many of the spending priorities here are laudable projects (like afterschool snacks) but not stimulus-related projects. Let them stand on their own merits and be voted on in separate bills, not just lumped together in a joke of a grab-bag. Leave this bill for the real stimulus projects– shovel-ready infrastructure, spending in targeted areas that will get money into the economy and provide paychecks to those who need them most, etc. This is starting to make the TARP look downright sensible and well-planned.

Posted by: moderate | January 24, 2009, 8:20 pm 8:20 pm

I’m under the impression that more than 3% of the stimulus plan is going into the infrastructure. I think it was stated that 25 billion was immediately ready, which would be around 3% of the total. But when you factor in other funds set aside for roads, rail, and water projects along with gridwork and federal building improvements, the infrastructure funding is around 90 billion. The NYT has a pie graph demonstrating portions significantly larger than 3% for infrastructure related projects.
The stimulus plan is bound to provoke further controversies and confusion, but I don’t believe it’s in anyway comparable to the Paulson bailout scheme for roughly the same amount . It has proven itself to have very little accountability for the 350 billion released. At least Obama’s plan involves a good deal more scrutiny and debate before its enactment -with the legislative plan itself, all 647 pages, available online.

Posted by: kathy | January 25, 2009, 1:53 am 1:53 am

Jake, I think you and your media fellows (and the “let’s do nothing” House Republicans) are being a bit too nit-picky (and also ill-informed).
The projects you outlined in your question all would have stimulative effect. (How exactly would they not?) They may not be your idea of road building or high-tech infrastructure but they will get dollars into the economy to good effect. And they make up less than .2% (a fifth of one percent) of the total package.
I was going to give you the NEA money, but as Philip M. notes, art and creative content are one of our biggest exports. And, who knows, perhaps some of that money is for building upgrades.
Same thing for the USDA. Obama has said repeatedly that government office buildings would be upgraded to save energy costs (thereby saving $$$ long-term). The USDA is one of the oldest departments of the gov’t, so I imagine they do have many outdated facilities leaking lots of energy.
And what’s wrong with doing upkeep on the National Mall? Is there any greater national image or more often used public space than the National Mall? It is likely among the most highly visited tourist attractions in the country. As such, I imagine it could use some upkeep. Along with the grass, I imagine there will be sprinklers installed or repaired (especially if there are breaks and leaks, which I imagine happen when the ground freezes in winter). And perhaps there are security upgrades that need to be made as well. lights, cameras, etc. All that sounds like a lot of good contracting and construction work to keep people working, paying taxes, etc.
The school snacks are obviously not infrastructure spending, but they’ll of course have secondary effects of helping food companies, farmers, and food wholesalers/distributors. And it sounds to me like EXCELLENT PUBLIC POLICY!!!
Millions of people are losing their jobs and families being forced to cut back on everything, including food. Good nutrition is so important for kids, especially these at risk kids who are likely not the most well-fed. A nutrition program like this will not only help supplement these kids basic food needs, but will have secondary effects of giving them better focus on their school and moderating behaviour problems.
And as for the GOP’s professed concerns with the deficit, how is it that tax-cuts do no harm to the deficit? How do they think we went from a budget surplus in 2000 to adding over $5 trillion to the National Debt. It just wasn’t increases in spending. It just goes to show that these fools are still clueless since they even refuse to listen to economists of their own political persuasion. The only economists who are calling for their plan are libertarian types who would prefer to see all the troubled banks, auto companies, investment cos, etc., etc. go bankrupt and millions lose their jobs, to satisfy their fixation on free-market orthodoxy. Some people on here have noted that what we are doing is borrowing money to spend it. Would they prefer what GWB did for 8 years – borrow money so that the top 10% could have massive tax cuts? I think it is time for the bottom 90% to get a break this time.
So, Jake, I think you really need to think through some of these questions to look at the benefits of programs before you start being so nit-picky. If you like, you can post the questions in advance and we can all screen them for you.
Just trying to do my part.

Posted by: Bud | January 25, 2009, 7:26 am 7:26 am

“I DON’T WANT TO GET INTO WHAT VOTE COUNT IN THIS OR THAT COMMITTEE”..
Naaah, you want to go back to your exclusive secret meetings that deny representation to half of Americans.
To levy unconstitutional taxes on unrepresented people by virtue of the fact that they arent even BORN YET.
Well guess what fed kids. The states made you and we can break you. Red blue or green polkadot states, the people can withdraw consent on a moment’s notice just like YOU withdrew access to democracy.
That’s not a right, it’s a duty.
Feds unconstitutionally ‘own’ more than HALF of Oregon, and now Obama is the expert land manager as well as CEO 4x over.
Cutting off logging entirely is going to create or save jobs?
pffft.
My grandpa was managing Oregon forrest land before oblamer’s learned how to walk.

Posted by: zak | April 30, 2009, 8:35 pm 8:35 pm

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