Saturday, July 11, 2009

Obama Rules Out Second Stimulus - For Now

There had been talk this week of a second stimulus package to be put forward by the Obama Administration.

However, President Obama rejected the idea during his weekly radio/internet address this morning.

At least for now.

Obama said the stimulus needed more time to work.

Merriam-Webster defines stimulus in part "as something that rouses or incites to activity: as a: incentive."

By that standard the stimulus bill has failed. But Obama is making the right political move by not endorsing a second stimulus bill at this time. There will be less political ammunition directed his way if he does nothing.

This helped Obama tremendously during the Presidential campaign last September when John McCain abruptly suspended his campaign while Obama did, well, nothing. Since McCain's suspension didn't yield any proposals from him it was an empty gesture. Meanwhile,, Obama appeared calm, cool and collected. This more than anything else cost McCain the election.

However, I was struck by one thing Obama said today. He said the stimulus "was not designed to work in four months. It was designed to work over two years."

The key phrase is "over two years." By that Obama means not exactly two years but over the course of two years. What this tells me is that we can expect to see a second stimulus package or at least the promise of one in the Fall of 2010. Just in time for mid-term elections.

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